{"id":11558,"date":"2024-08-09T09:27:51","date_gmt":"2024-08-09T09:27:51","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=11558"},"modified":"2024-08-09T09:29:22","modified_gmt":"2024-08-09T09:29:22","slug":"canadas-tc-energy-to-sell-pipeline-stake-to-indigenous-groups-for-722-million","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/11558\/","title":{"rendered":"Canada\u2019s TC Energy to Sell Pipeline Stake to Indigenous Groups for $722 Million"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Pipeline operator\u00a0<\/span>TC Energy Corp.<\/span> said Tuesday, July 30, it will sell a 5.34% stake in its Canadian natural gas pipeline system to Indigenous communities for C$1 billion ($722.1 million) as part of its plan to reduce the debt burden and fund investments.\u00a0<\/span><\/p>\n

The deal will see an Indigenous-owned investment partnership acquire a minority interest in the NGTL system and Foothills assets in western Canada.<\/span><\/p>\n

The Calgary-based company, best known for its Keystone oil pipeline, is shifting its focus to natural gas transportation. As a result, the company is spinning off its oil business.\u00a0<\/span><\/p>\n

Analysts said the widely anticipated deal is a key step toward TC Energy’s C$3 billion asset sale target for 2024. They added that the transaction’s healthy valuation should positively impact investor sentiment.<\/span><\/p>\n

“With significant asset sales announced, we see its funding plan being further de-risked,” Scotiabank analyst Robert Hope noted. Even so, TC Energy shares were unchanged on the Toronto Stock Exchange, closing at C$58.05.<\/span><\/p>\n

The agreement is backed by the Alberta Indigenous Opportunities Corporation and was negotiated by a consortium representing 72 communities near the pipeline system in Alberta, British Columbia, and Saskatchewan.<\/span><\/p>\n

Sawridge First Nation Chief Isaac Twinn, chairman of the consortium committee, said in a statement that the committee had improved the deal’s terms during negotiations. The agreement follows similar deals by companies, including Enbridge and Suncor Energy, which have given Indigenous communities stakes in energy projects near their territories.<\/span><\/p>\n

TC Energy CEO Francois Poirier said the deal aligns with the company’s debt reduction goals while fostering partnerships with Indigenous communities, adding it would solve multiple problems.<\/span><\/p>\n

The NGTL system spans about 24,400 kilometers (15,150 miles) and connects most of western Canada’s natural gas production to domestic and export markets.<\/span><\/p>\n

Updated on