TC Energy in deal to sell Portland Natural Gas for US$1.14bn

Canadian energy infrastructure company TC Energy said March 4 it and Northern New England Investment, a subsidiary of Quebec distributor Energir have agreed to sell the Portland Natural Gas Transmission System (PNGTS) to Blackrock and Morgan Stanley Infrastructure Partners for US$1.14bn ($C1.55bn), inclusive of US$250mn of outstanding notes held by PNGTS.

TC Energy holds a 61.7% interest in PNGTS with Northern New England Investment holding the remaining 38.3% interest. The transaction is expected to close in mid-2024, subject to the receipt of regulatory approvals and customary closing conditions.

“Today’s announcement represents continued progress toward achieving our 2024 strategic priority of enhancing our balance sheet strength by delivering approximately C$3bn in asset divestitures,” TC Energy CEO Francois Poirier said. “This sale of a non-core asset at a strong valuation is a unique opportunity to support our capital rotation and deleveraging priorities while continuing to meet the needs of the communities PNGTS serves.”

PNGTS is a 475-km transporter of natural gas serving the upper New England and Atlantic Canada markets. Regulated by the US Federal Energy Regulatory Commission (FERC), PNGTS receives gas from the Trans Quebec and Maritimes pipeline (also owned by TC Energy and Energir) via TC Energy’s Canadian Mainline system.