TC Energy nears $726 million deal with indigenous Canadian groups for stake in 16,000-mile natural gas pipeline system

(UI) – According to Bloomberg, TC Energy is close to selling a stake in its natural gas pipeline system to indigenous communities in Western Canada.

With support from Alberta’s government, a provincial agency has conditionally approved a C$1 billion ($726 million) loan guarantee to finance the deal. Indigenous groups from Alberta, British Columbia, and Saskatchewan are involved in the consortium.

The deal, involving TC Energy’s NGTL System, which spans over 24,000 km (approximately 16,000 miles) and transports natural gas in Canada’s western provinces, is expected to be announced on July 30, with finalization in late August.

This sale is part of TC Energy’s strategy to reduce debt after cost overruns on the Coastal GasLink pipeline project. Last year, TC Energy surpassed its C$5 billion divestiture target by selling a 40% stake in two U.S. pipeline networks. The company plans to divest another C$3 billion in assets soon.

This story was originally reported by Bloomberg.

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