TC Energy selling Portland pipeline

A map including the PNGTS line. (Image: TC Energy)

TC Energy and its partner Northern New England Investment will sell the Portland Natural Gas Transmission System (PNGTS) to BlackRock for a gross purchase price of US$1.14 billion.

PNGTS is a 475 km (295 mi.) FERC-regulated transporter of natural gas serving the upper New England and Atlantic Canada markets. The pipeline receives natural gas from the Trans Quebec and Maritimes (TQM) Pipeline via the Canadian Mainline. TC Energy will provide customary transition services and will work jointly with the buyer to ensure the safe and orderly transition of this critical natural gas system.

“Today’s announcement represents continued progress toward achieving our 2024 strategic priority of enhancing our balance sheet strength by delivering approximately US$3 billion in asset divestitures. We are committed to reaching our 4.75 times debt-to-EBITDA upper limit by year-end and expect to have further asset divestiture announcements through the year,” said François Poirier, TC Energy’s President and Chief Executive Officer. “This sale of a non-core asset at a strong valuation is a unique opportunity to support our capital rotation and deleveraging priorities while continuing to meet the needs of the communities PNGTS serves.”