Canada’s TC Energy agreed to sell a 40 percent interest in its Columbia Gas and Columbia Gulf pipelines, which deliver natural gas to US LNG export plants, to Global Infrastructure Partners.
TC Energy, the owner of the LNG Canada pipeline Coastal GasLink, said in a statement total proceeds for the transaction are C$5.2 billion ($3.9 billion) in cash.
The firm will continue to operate the systems, while TC Energy and GIP will jointly invest in annual maintenance, modernization and sanctioned growth capital to further enhance system capacity and reliability.
GIP will fund its 40 percent share of gross capital expenditures, which TC Energy expects to average more than C$1.3 billion ($1 billion) annually over the next three years.
The Columbia Gas and Columbia Gulf pipelines span more than 15,000 miles (24,140 kilometers) across a highly integrated North American natural gas network.
These assets deliver a substantial portion of daily US natural gas demand, including about 20 per cent of US LNG export supply, TC Energy said.
TC Energy expects the transaction to close in the fourth quarter of 2023, subject to customary closing conditions.