TC Energy Corp. has completed the sale of a 65% equity interest in the Coastal GasLink Pipeline Project.
In addition, the Coastal GasLink Pipeline Limited Partnership has executed a credit agreement with a syndicate of banks extending non-recourse project-level financing to fund the majority of the construction costs for the project which, with the closing of the equity sale, are available to be drawn. Together, these transactions have resulted in the company realising immediate proceeds of approximately CAN$2.1 billion.
TC Energy remains committed to partnering with the 20 First Nations who have executed agreements with Coastal GasLink and, as previously announced, has provided an opportunity for them to invest in the project with an option to acquire a 10% equity interest in Coastal GasLink on similar terms as the 65% interest.
The introduction of high-quality partners, establishment of a dedicated project-level financing facility, recovery of cash payments through construction for carrying charges on costs incurred and remuneration for costs to date are expected to substantially satisfy TC Energy’s Coastal GasLink funding requirements through project completion, further solidifying the company’s financial flexibility.
Coastal GasLink involves the construction of 670 km (416 miles) of pipeline and associated facilities. Once completed, the pipeline will have an initial capacity of 2.1 billion ft3/d and connect abundant Western Canadian Sedimentary Basin natural gas supply from the Dawson Creek, B.C. area to the LNG Canada liquefaction and export facility being constructed in Kitimat, B.C. All necessary regulatory permits have been received for the project and construction is underway.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26052020/tc-energy-secures-financing-for-coastal-gaslink/