Trans Canada Energy sells PNGTS

Trans Canada Energy, Canada's second-largest oil and natural gas carrier, has demonstrated its steadfast commitment to complete C$3 billion of asset sales this year by unloading its Portland Natural Gas Transmission system for US$ 1.14 billion.

In taking a big step towards its 2024 goals of trimming its balance sheet, Calgary-based TC Energy announced March 4 its sale of Portland Natural Gas is a "unique opportunity to support our capital commitments and deleverage priorities while continuing to meet the needs of the communities PNGTS serves."

PNGTS is a 475-kilometer gas pipeline system that serves upper New England and Atlantic Canada markets and receives natural gas from the Trans Quebec and Maritimes pipeline via the Canadian Mainline.

The Portland sale is expected to close in mid-2024 subject to regulatory approvals and customary closing conditions.

TC Energy sold a 40% stake in its Columbia Gas and Columbia Gulf systems to New York-based Global Infrastructure Partners last year for US$5.3 billion.

TC Energy has been seeking to sell assets in order to pay off debt at a time when it is under significant scrutiny from investors and credit rating agencies for its heavy debt load, as well as for the spiraling cost of the 670-kilometer Coastal Gas Link pipeline it completed last fall in British Columbia after the budget ballooned to C$11.2 billion from C$6.2 billion.

--GARY PARK