TC Energy Corp. has announced it has entered into an agreement to sell its U.S. midstream assets held by its subsidiary Columbia Midstream Group to UGI Energy Services, LLC, a subsidiary of UGI Corp., for about $1.7 billion.
The company, formerly known as TransCanada, said the transaction is expected to close in the third quarter of 2019 subject to closing adjustments and customary regulatory approvals.
“The sale of Columbia Midstream Group advances our ongoing efforts to prudently fund our industry-leading portfolio of high-quality natural gas pipeline, liquids pipelines and power generation projects, while maximizing value for our shareholders,” said Russ Girling, TC Energy president and chief executive officer, in a news release.
“Along with the sale of Coolidge and partial monetization of Northern Courier, we now expect to realize approximately C$3.4 billion of proceeds from announced portfolio management activities in 2019. 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 $30 billion secured capital program in a manner consistent with achieving targeted credit metrics in 2019 and thereafter.”
TC Energy said Columbia Midstream Group, which operates in the Appalachian Basin, owns four natural gas gathering systems and an interest in a company with gathering, processing and liquids assets. These assets connect production to markets throughout western Pennsylvania, eastern Ohio and northern West Virginia. This sale does not include any interest in Columbia Energy Ventures Co., which is TC Energy’s minerals business in the Appalachian basin, it added.
“TC Energy continues to own and operate its significant network of interstate pipelines in the Appalachian Basin with its Columbia Gas Transmission system, which transports low-cost natural gas supply from the production region to markets in the U.S., including LNG export facilities that serve international markets,” said the company.