TC Energy has signed a binding letter agreement to sell its Prince Rupert Gas Transmission (PRGT) entities to Western LNG and Nisga’a Nation.
A jointly owned subsidiary of Nisga’a Nation and Western LNG will acquire all of the outstanding shares in Prince Rupert Gas Transmission Holdings and the limited partnership interests in Prince Rupert Gas Transmission Limited Partnership (collectively, PRGT).
PRGT is responsible for developing a natural gas pipeline in British Columbia.
As part of the agreement, TC Energy will provide transition services to ensure a smooth handover of the pipeline project.
These services will be on a reimbursable basis, supporting development work planned for the current year.
The transaction is subject to the finalisation of definitive agreements and customary closing conditions. It is expected to be completed in the second quarter of 2024.
TC Energy said the sale aligns with its strategic priorities, which include maintaining a net capital expenditure limit of $6bn–$7bn annually post-2024, maximising asset value and enhancing its financial flexibility.
The company stated that the transaction is expected to facilitate the development of critical energy infrastructure, and the initial proceeds are not anticipated to be material to it.
Additional payments may be received contingent on the project's final investment decision and commercial operations.
TC Energy president and CEO François Poirier said: “We are pleased to see this important project move forward while remaining firm on our commitment to our strategic priorities. This is an important agreement that will see indigenous co-ownership and development of an integrated LNG [liquefied natural gas] project.
“Enabling LNG development in British Columbia is good for indigenous communities, our customers, supports the long-term growth of the WCSB [Western Canadian Sedimentary Basin] and global emissions reduction through the export of responsibly produced Canadian natural gas.”
Nisga’a Nation and Western plan to sign an agreement with an international construction manager to build the proposed pipeline.
Recently, TC Energy and Énergir agreed to sell the Portland Natural Gas Transmission System for $1.14bn.
