TC Energy to Sell 40% in Columbia Gas Transmission Systems

Researched by Industrial Info Resources (Sugar Land, Texas)--TC Energy Corporation (NYSE:TRP) (Calgary, Alberta) announced that it will sell a 40% stake in its Columbia Gas Transmission and Columbia Gulf Transmission natural gas pipeline systems in the U.S. for C$5.2 billion (US$3.95 billion) to infrastructure fund manager Global Infrastructure Partners (GIP) (New York, New York). The pipelines collectively span about 15,000 miles. Under the deal, TC Energy and GIP will jointly invest in maintenance and modernization projects on the systems, with GIP funding 40% of the capital expenditures.

TC Energy is on track to divest C$5 billion (US$3.8 billion) of assets before the end of this year to help reduce debt and fund projects such as the Coastal GasLink natural gas pipeline in British Columbia, a 416-mile pipeline that will supply gas to LNG Canada's (Kitimat, British Columbia) liquefied natural gas plant in Kitimat. The pipeline initially will be capable of transporting up to 2.1 billion cubic feet per day (Bcf/d) of gas. Construction began in 2019, and the project is on track for a mid-2025 completion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can click here for the full report. Subscribers can learn more about that LNG Canada project by viewing the project report.

The deal between TC Energy and GIP encompasses active projects on the Columbia systems. The Columbia Gas Transmission system covers 10 states from New York to the Midwest and Southwest and includes about 11,900 pipeline miles. TC Energy is planning a couple of pipeline replacement projects on the system. Near South Point, Ohio, TC Energy plans to insert more than a mile of plastic pipeline into an existing steel pipeline and replace another section line of the line, which will have a reduced operating pressure. Construction is set to begin later this year and be completed in early 2024. Subscribers can click here for more information.

TC Energy also is in the planning stages for its Virginia Reliability Project, which involves compressor station modifications and the replacement of a section of pipe on the Columbia Gas system in Virginia. The pipeline replacement calls for placing 47.7 miles of new 24-inch-diameter pipeline along the existing right of way to help transport an additional 105 million cubic feet per day of gas in three Virginia counties. Construction is expected to kick off toward the end of next year and take about a year to complete. Subscribers can click here for more details.

The Columbia Gulf natural gas pipeline system covers more than 3,300 miles and connects with major Gulf Coast and Midwestern pipelines. Industrial Info is tracking about US$375 million worth of active projects on this system, such as the addition of a grassroot pipeline lateral in Louisiana. The East Lateral Xpress project includes installing 8.14 miles of 30-inch-diameter pipeline to transport up 725 million cubic feet per day of gas from Jefferson Parish to Plaquemines Parish. The project is expected to kick off in the near future and be completed in the first half of next year. Subscribers can click here to learn more. The East Lateral Xpress project also entails the addition of two grassroot compressor stations and modifications to an existing station. Subscribers can click here for more information.

Global Infrastructure Partners is not without its own projects, most of which involve solar and wind power and battery energy storage systems. Industrial Info is tracking more than US$35 billion worth of active projects in which the firm is playing a leading role. Such projects include the grassroot Victory Pass solar facility on an 1,800-acre site near Riverside, California. Engineering, procurement and construction firm SOLV Energy LLC (San Diego, California) kicked off construction on the project last summer. Upon completion, which is expected this fall, the solar farm will use panels on a single-axis tracking system to provide 200 megawatts of power. Subscribers to Industrial Info's Power Project Database can click here for more details.

Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).