TC Energy Corporation and its partner Northern New England Investment Company have announced their agreement to sell the Portland Natural Gas Transmission System (PNGTS) to BlackRock in a US$1.14bn deal, including the assumption of US$250m of outstanding Senior Notes held at PNGT.
The PNGTS is a 475 km FERC-regulated gas transmission company serving the upper New England and Atlantic Canada markets, and it receives natural gas from the Trans Quebec and Maritimes (TQM) Pipeline via the Canadian Mainline. TC Energy holds a 61.7 % stake in PNGTS, while its partner, a subsidiary of Energir, owns 38.8%. TC Energy will provide customary transition services and will work jointly with the Blackrock to ensure the safe and orderly transition of the PNGTS.
TC Energy has been seeking to sell assets to pay off debt, with the purchase expecting to generate about CAD740m of pre-tax proceeds (US$545m net proceeds). The transaction is expected to close in mid-2024, subject to regulatory approvals and customary closing conditions.