TC Energy announces plan to sell 65% stake in Coastal GasLink pipeline
Douglas Channel, the proposed termination point for an oil pipeline in the Enbridge Northern Gateway Project, is pictured in an aerial view in Kitimat, B.C., on Tuesday January 10, 2012. (Darryl Dyck / THE CANADIAN PRESS)
CALGARY -- TC Energy announced plans Thursday to sell a 65 per cent equity interest in the Coastal GasLink Pipeline Project to KKR and the Alberta Investment Management Corp. (AIMCo), acting on behalf of certain AIMCo. clients.
Additionally, TC Energy announced that it has secured financing with a syndicate of banks to finance upwards of 80 per cent of the project's $6.2 billion price tag.
"The partial monetization of Coastal GasLink advances our ongoing efforts to prudently fund our $30 billion secured capital program, while maximizing value for our shareholders,"said TC Energy president and CEO Russ Girling, in a release.
"We look forward to establishing a long-term relationship with KKR and AIMCo as we advance this critical energy infrastructure project."
The 670 kilometre pipeline will ship natural gas from northeastern B.C. to LNG Canada in Kitimat.
While all the necessary permits have been approved, TC Energy said it remains "committed to working with the 20 First Nations that have executed agreements with Coastal GasLink to provide them with an opportunity to invest in the project."
To facilitate that goal, TC Energy are offering the various First Nations an option to buy 10 per cent equity in Coastal GasLink.