On Tuesday, TC Energy, formerly known as TransCanada Corporation, announced it will sell its US midstream assets to UGI Energy Services LLC for $1.7 billion.
The assets are held by the company’s subsidiary, Columbia Midstream Group, which operates in the Appalachian Basin.
“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.
According to the Calgary-based company, the deal is expected to close in the third quarter of 2019.
“Along with the sale of Coolidge and partial monetization of Northern Courier we now expect to realize approximately Cdn$3.4 billion of proceeds from announced portfolio management activities in 2019,” said Girling. “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.”
Columbia Midstream Group owns four natural gas gathering systems and an interest in a company with gathering, processing and liquids assets. These facilities connect production to markets in Pennsylvania, eastern Ohio and northern West Virginia.
TC Energy says the sale does not include any interest in Columbia Energy Ventures Company (CEVCO), which is TC Energy’s minerals business in the Appalachian basin.
With its Columbia Gas Transmission system, the company continues to own and operate a network of interstate pipelines in the Appalachian Basin. In this system, natural gas is transported by the pipelines to markets in the US, including LNG export facilities.