TC Energy to Sell PNGTS for $1.14B
TC Energy Corp. and partner Northern New England Investment Co. Inc., a subsidiary of Énergir LP, have agreed to sell Portland Natural Gas Transmission System (PNGTS) to BlackRock, through a fund managed by its diversified infrastructure business, and investment funds managed by Morgan Stanley Infrastructure Partners, for $1.14 billion, including debt.
Calgary, Alberta-based PNGTS, which is 61.7% owned by TC Energy and the rest by Quebec-based Energir, is a 295-mile FERC-regulated transporter of natural gas serving the upper New England and Atlantic Canada markets. The pipeline receives natural gas from the Trans Quebec and Maritimes (TQM) Pipeline via the Canadian Mainline.
The agreement to sell the non-core asset moves TC Energy closer to its targeted $3 billion in asset divestitures, said François Poirier, TC Energy’s president and CEO. The company expects to have “further asset divestiture announcements through the year,”
The cash proceeds will be split pro-rata according to the current PNGTS ownership interests, TC Energy said. The deal is expected to close in the middle of the year.
The company said its 2024 financial guidance and growth outlook through 2026 remain unchanged.