TC Energy Corporation, formerly Trans Canada, will sell its US midstream assets to UGI Energy Services for $1.27 billion.
Columbia Midstream Group, which operates the midstream assets in the Appalachian Basin, owns four natural gas gathering systems and an interest in a company with gathering, processing and liquids assets. These assets connect production to markets throughout western Pennsylvania, eastern Ohio and northern West Virginia.
The transaction is expected to close in the third quarter of 2019.
Russ Girling, TC Energy president and CEO, says: ‘The sale of Colombia Midstream Group advances our ongoing efforts to prudently fund our industry-leading portfolio of high-quality natural gas pipeline, liquids pipelines and power generation projects, while maximising value for our shareholders.
‘When combined with our significant and growing cash flow, access to capital markets and potential additional portfolio management activities, we are well-positioned to fund our $30 billion secured capital programme in a manner consistent with achieving targeted credit metrics in 2019 and thereafter.’