TC Energy enters agreement to sell Prince Rupert Gas Transmission entities to Nisga’a Nation and Western LNG
March 14 2024 - 5:00PM
TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company)
announced today that it has entered into a binding letter agreement
with Nisga’a Nation and Western LNG (the Buyers) regarding the
purchase and sale of all outstanding shares in Prince Rupert Gas
Transmission Holdings Ltd. and the limited partnership interests in
Prince Rupert Gas Transmission Limited Partnership (collectively,
PRGT). PRGT is a wholly owned subsidiary of TC Energy and the
developer of a natural gas pipeline project in British Columbia and
potential delivery corridor that would further unlock Canada as a
secure, affordable and sustainable source of LNG.
This transaction demonstrates TC Energy’s
resolve toward delivering its 2024 strategic priorities while
facilitating the development of critical energy infrastructure. TC
Energy’s strategic priorities are focused on staying within its $6
to $7 billion annual net capital expenditure limit, post-2024,
maximizing the value of its assets and further enhancing the
strength and flexibility of its balance sheet. This agreement fits
with those priorities and more.
“We are pleased to see this important project
move forward while remaining firm on our commitment to our
strategic priorities. This is an important agreement that will see
Indigenous co-ownership and development of an integrated LNG
project. Enabling LNG development in British Columbia is good for
Indigenous communities, our customers, supports the long-term
growth of the WCSB and global emissions reduction through the
export of responsibly produced Canadian natural gas,” said François
Poirier, President and CEO, TC Energy.
As part of the letter agreement, TC Energy has
committed to provide transition services, on a reimbursable basis,
to facilitate the seamless transition of the pipeline project and
support development work planned for this year. Subject to the
execution of definitive agreements and customary closing
conditions, the transaction is expected to close in the second
quarter of 2024. Initial proceeds from the transaction are not
expected to be material to TC Energy, with the potential to receive
additional payments contingent upon the project achieving final
investment decision and commercial operation.
About TC EnergyWe’re a team of
7,000+ energy problem solvers working to safely move, generate and
store the energy North America relies on. Today, we’re delivering
solutions to the world’s toughest energy challenges – from
innovating to deliver the natural gas that feeds LNG to global
markets, to working to reduce emissions from our assets, to
partnering with our neighbours, customers and governments to build
the energy system of the future. It’s all part of how we continue
to deliver sustainable returns for our investors and create value
for communities.
TC Energy’s common shares trade on the Toronto
(TSX) and New York (NYSE) stock exchanges under the symbol TRP. To
learn more, visit us at TCEnergy.com.
FORWARD-LOOKING INFORMATIONThis
release contains certain information that is forward-looking and is
subject to important risks and uncertainties (such statements are
usually accompanied by words such as "anticipate", "expect",
"believe", "may", "will", "should", "estimate", "intend" or other
similar words). Forward-looking statements in this document are
intended to provide TC Energy security holders and potential
investors with information regarding TC Energy and its
subsidiaries, including management's assessment of TC Energy's and
its subsidiaries' future plans and financial outlook. All
forward-looking statements reflect TC Energy's beliefs and
assumptions based on information available at the time the
statements were made and as such are not guarantees of future
performance. As actual results could vary significantly from the
forward-looking information, you should not put undue reliance on
forward-looking information and should not use future-oriented
information or financial outlooks for anything other than their
intended purpose. We do not update our forward-looking information
due to new information or future events, unless we are required to
by law. For additional information on the assumptions made, and the
risks and uncertainties which could cause actual results to differ
from the anticipated results, refer to the most recent Quarterly
Report to Shareholders and Annual Report filed under TC Energy’s
profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities
and Exchange Commission at www.sec.gov.
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Media Inquiries:Media
Relationsmedia@tcenergy.com 403-920-7859 or 800-608-7859
Investor & Analyst
Inquiries:Gavin Wylie / Hunter
Mauinvestor_relations@tcenergy.com403-920-7911 or 800-361-6522
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