Reese Energy Consulting today is following the latest news from Alberta-based TC Energy, which will sell a 40% stake in its Columbia Gas pipeline systems to PE firm Global Infrastructure Partners for $4 billion. In a nutshell, TCE will continue to operate the two pipelines and GIP will chip in half for annual maintenance and any new bells or whistles to keep the 15,000 miles of pipe flowing gas to 10 states and to the Gulf. TCE announced last fall it planned to divest $5 billion in assets to cut debt and direct more funds to other projects, so looks like that mission has been accomplished in nearly one fell swoop—and it’s not by coincidence.
The company, whose U.S. pipelines make up the lion’s share of its revenues, hit an all-time record in 1Q 2023 for deliveries to LNG export facilities. And while a lot of private equity this year has unloaded its shale investments, GIP continues to steadily build its midstream and LNG portfolio. The firm in June partnered with TotalEnergies and NextDecade in a $5.9 billion investment of the Rio Grande LNG plant that reached FID earlier this month. Meanwhile, TC Energy has other fish to fry. Among its projects in the hot skillet for capital is Coastal GasLink, a 416-mile pipeline that will flow Montney feed gas to LNG Canada’s terminal near Kitimat, BC. Now 90% complete, Coastal GasLink could add another $1.2 billion to the already $14.5 billion of an original $11.2 billion estimated. The project is slated for completion before year-end.