Global Infrastructure Partners is investing C$5.2bn (€3.6bn) for a 40% stake in TC Energy’s 15,000 miles of North American natural gas pipeline infrastructure.

TSX and NYSE-listed TC Energy said it has agreed to sell part of its Columbia Gas Transmission and Columbia Gulf Transmission systems to GIP, in a deal that would see the two firms jointly investing in the annual ”maintenance, modernisation and growth capital to further enhance system capacity and reliability”.

The Columbia Gas and Columbia Gulf pipelines deliver a substantial portion of daily US natural gas demand, including approximately 20% of US liquified natural gas export supply.

GIP will fund its 40% share of gross capital expenditures, which are expected to average more than C$1.3bn annually over the next three years.

Bayo Ogunlesi, GIP’s chairman and CEO, said: “We are pleased to partner with TC Energy on energy infrastructure assets that are critical to the North American and global natural gas markets. We welcome the opportunity for this joint venture to leverage the combined assets and capabilities of TC Energy and GIP to serve growing market needs for cleaner fuels, energy security and energy affordability.”

François Poirier, TC Energy’s president and CEO, said the transaction represents a “major milestone in achieving our 2023 strategic priorities”. 

Poirier said to date that TC Energy has advanced its deleveraging goals by delivering on its C$5bn-plus asset divestiture programme ahead of the firm’s year-end target, ”while maximising the value of our assets and safely executing major projects”, such as Coastal GasLink and Southeast Gateway.

Poirier added: “As part of our ongoing capital rotation programme, we continue to evaluate opportunities to further our deleveraging objectives and optimally fund our secured capital programme.”

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