TC Energy Corp., Calgary, and partner Northern New England Investment Co. Inc., a subsidiary of Énergir LP, have agreed to sell Portland Natural Gas Transmission System (PNGTS) to BlackRock and investment funds managed by Morgan Stanley Infrastructure Partners, for a gross purchase price of $1.14 billion.
The agreement to sell the non-core asset moves TC Energy closer to its targeted $3 billion in asset divestitures, said François Poirier, TC Energy’s president and chief executive officer in a press release Mar. 4. The company expects to have “further asset divestiture announcements through the year,” he said.
The cash proceeds will be split pro-rata according to the current PNGTS ownership interests (TC Energy 61.7%, Énergir 38.3%) and will be paid at closing, expected mid-2024, subject to certain customary adjustments.
PNGTS is a 475-km (295-mile) FERC-regulated transporter of natural gas serving the upper New England and Atlantic Canada markets. The pipeline receives natural gas from the Trans Quebec and Maritimes (TQM) Pipeline via the Canadian Mainline. TC Energy will provide customary transition services and will work jointly with the buyer to ensure the safe and orderly transition, it said.