TC Energy, formerly TransCanada, will sell midstream assets held by its subsidiary, Columbia Midstream Group, for US$1.275 billion.
UGI Energy Services will purchase the assets, which include four natural gas gathering systems in the Appalachian Basin in the east US, as well as an interest in a company with gathering, processing and liquids assets.
The assets connect production to markets in Pennsylvania, Ohio and West Virginia, US.
TC Energy President and CEO Russ Girling said the sale advanced the company’s efforts to fund new pipelines and power generation projects.
“Along with the sale of Coolidge and partial monetisation of Northern Courier we now expect to realise approximately CA$3.4 billion (US$2.59 billion) of proceeds from announced portfolio management activities in 2019,” he said.
“When combined with our significant and growing cash flow, access to capital markets and potential additional portfolio management activities, we are well-positioned to fund our CA$30 billion (US$22.9 billio) secured capital program in a manner consistent with achieving targeted credit metrics in 2019 and thereafter.”
TC Energy will continue to operate other pipelines in the Appalachian Basin through its Columbia Gas Transmission System while UGI’s acquisition will add to its existing pipelines in Pennsylvania.
For more information visit the TC Energy website.
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