TC Energy Corp. is selling U.S. natural gas gathering and processing assets for US$1.275-billion, its latest asset deal aimed at using proceeds to fund a large list of pipeline and other energy projects.
TC Energy, formerly TransCanada Corp., said Tuesday that Pennsylvania-based UGI Corp. is buying its Columbia Midstream Group. The unit operates gas gathering, processing and gas liquids assets in the Appalachian Basin.
Calgary-based TC Energy acquired the assets, located in Pennsylvania, Ohio and West Virginia, in its $13-billion acquisition of Columbia Pipeline Group Inc. in 2016. Following the divestiture, it will still own interstate pipelines in the region.
Late last year, the company struck a deal to jettison its Coolidge power station in Arizona for US$465-million, and in May announced it was selling a stake in the Northern Courier bitumen pipeline to Alberta Investment Management Corp. for $1.15-billion.
The deals provide TC Energy with $3.4-billion in proceeds it will use to fund some of $30-billion worth of development and maintenance projects planned in Canada and the United States through 2023, while meeting its credit rating targets, chief executive officer Russ Girling said in a statement.
The Columbia Midstream sale is expected to be completed before the end of September, the company said.