Prince Rupert Gas Transmission Project : TC Energy announces strategic agreement with Nisga’a Nation and Western LNG
TC Energy Corporation (TSX, NYSE: TRP), a leading player in the energy sector, has taken a significant step forward by entering into a binding letter agreement with the Nisga’a Nation and Western LNG (the Buyers) for the sale of all outstanding shares in Prince Rupert Gas Transmission Holdings Ltd. and the limited partnership interests in Prince Rupert Gas Transmission Limited Partnership (collectively, PRGT). This agreement highlights the project’s potential to enhance Canada’s position as a secure, affordable, and sustainable source of LNG.
This transaction aligns with TC Energy’s commitment to its 2024 strategic priorities, which include maintaining a $6 to $7 billion annual net capital expenditure limit post-2024, maximizing asset value, and strengthening the company’s balance sheet. François Poirier, President and CEO of TC Energy, emphasized the importance of this development, stating, “We are pleased to see this important project move forward while remaining firm on our commitment to our strategic priorities. This is an important agreement that will see Indigenous co-ownership and development of an integrated LNG project. Enabling LNG development in British Columbia is good for Indigenous communities, our customers, supports the long-term growth of the WCSB and global emissions reduction through the export of responsibly produced Canadian natural gas.”
The collaboration with Nisga’a Nation and Western LNG not only underscores the role of Indigenous communities in Canada’s energy sector but also reflects a shared vision for sustainable and responsible energy development. The agreement paves the way for the Prince Rupert Gas Transmission project to become a crucial component in delivering Canadian natural gas to the global market, thereby contributing to global emissions reduction efforts.
As part of the agreement, TC Energy has committed to providing transition services on a reimbursable basis to ensure the seamless handover of the pipeline project. This support is crucial for the continued development work planned for this year. The transaction is expected to close in the second quarter of 2024, subject to definitive agreements and customary closing conditions. While initial proceeds from the transaction are not anticipated to be material to TC Energy, the deal holds the potential for additional payments contingent upon the project reaching its final investment decision and commercial operation.
This strategic alliance between TC Energy, Nisga’a Nation, and Western LNG represents a landmark move towards integrating Indigenous co-ownership in major energy projects. It not only fosters economic development within Indigenous communities but also sets a precedent for collaborative efforts in achieving sustainability and efficiency in energy production. The Prince Rupert Gas Transmission project embodies the future of energy infrastructure development, where economic growth and environmental stewardship go hand in hand.