TC Energy TRP-T +0.45%increase said on Monday it has agreed to sell Portland Natural Gas Transmission System (PNGTS) to BlackRock for $1.14-billion as part of its ongoing efforts to reduce debt and fund investments.
Best known for its Keystone oil pipeline, the company is undergoing an overhaul. Last year, it said it would spin off its liquids business to focus on transporting natural gas.
CEO Francois Poirier had said in 2022 TC Energy planned to raise more than $5-billion through 2023.
The company is grappling with long-term debt of about $49.976-billion as of Dec. 31, 2023, as well high costs at its Coastal GasLink pipeline in British Columbia.
PNGTS is a 475-kilometer (295-mile) transporter of natural gas serving the upper New England and Atlantic Canada markets.
Blackrock will assume $250-million of outstanding debt at PNGTS. The deal is expected to close mid-2024, with the cash being split pro-rata according to the current PNGTS ownership interests (TC Energy 61.7 per cent and Energir, owned by Northern New England Investment Company, 38.3 per cent).
The company is aiming to sell at least $3-billion worth of assets this year to reduce debt, likely through two to four sales.
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