Canada's TC Energy to sell pipeline stake to some indigenous communities for $722 mln (updated)

Foothills Exploration

30/07/2024 13:01

(Adds background and details in paragraphs 2-5)
       July 30 (Reuters) - TC Energy  TRP.TO  said on Tuesday
that it will sell a minority stake in its Nova Gas transmission
system and the Foothills pipeline assets for C$1 billion ($722.1
million) to certain indigenous Canadian communities as part of a
plan to reduce its debt and fund investments.
     The company, best known for its Keystone oil pipeline, is
undergoing an overhaul. Last year, it said it would spin off its
liquids business to focus on transporting natural gas.
    The stake sale is backed by the Alberta Indigenous
Opportunities Corporation (AIOC) and was negotiated by a
consortium committee representing specific indigenous
communities across Alberta, British Columbia and Saskatchewan.
    This deal will enable up to 72 indigenous communities
closest to the natural gas infrastructure assets spanning
western Canada to become equity owners, TC Energy said in a
statement.
    The transaction is expected to close in the third quarter.


($1 = 1.3848 Canadian dollars)

 (Reporting by Tanay Dhumal, Seher Dareen and Arunima Kumar in
Bengaluru; Editing by Shilpi Majumdar and Sonia Cheema)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))