A jointly owned subsidiary of the Nisga’a Nation and Western LNG LLC entered into a binding agreement with TC Energy Corp., Calgary, to acquire all its outstanding shares in Prince Rupert Gas Transmission Holdings Ltd. and the limited partnership interests in Prince Rupert Gas Transmission LP (collectively, PRGT).
PRGT is a wholly owned subsidiary of TC Energy and the developer of a natural gas pipeline project originally proposed as a 900-km, 48-in OD pipeline with capacity to transport 2-3.6 bcfd from a point near Hudson’s Hope, BC, to a proposed LNG plant on Lelu Island (OGJ Online, Jan. 10, 2013).
The deal with TC Energy supports advancement of the approved and permitted pipeline, Western LNG said in a release Mar. 14.
“PRGT is fully engineered, permitted, and ready to construct,” said Davis Thames, president and chief executive officer of Western LNG.
Moving forward, the Nisga’a Nation and Western intend to enter into an agreement with an “internationally respected construction manager” to build the pipeline, but details were not disclosed.
A deal value also was not disclosed, but TC Energy said in a separate release that “initial proceeds from the sale 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.”
The company said the sale is part of its plan to remain within its $6-7 billion (Can.) annual net capital expenditure limit post-2024. Late last year, the company committed to executing $3 billion (Can.) of incremental divestitures by end-2024.
Earlier this month, TC Energy and partner Northern New England Investment Co. Inc. agreed to sell Portland Natural Gas Transmission System for a gross purchase price of $1.14 billion (OGJ Online, Mar. 4, 2024).
As part of the letter agreement with Nisga’a Nation and Western LNG, TC Energy said it has committed to provide transition services, on a reimbursable basis, to aid with the transition and support development work planned for this year.
The acquisition will be finalized upon the completion of a purchase and sales agreement and customary closing conditions, expected in second-quarter 2024.