- TC Energy (TSX:TRP) has provided an update on financing for its controversial Coastal GasLink Pipeline Project
- The company announced today that it has completed the sale of a 65 per cent equity interest in the project
- A credit agreement has also been executed with a syndicate of banks, which will fund the majority of construction costs
- These transactions have resulted in immediate proceeds of roughly C$2.1 billion
- The pipeline has been the subject of considerable focus after protestive blockades were implemented across Canada’s CN railway
- TC Energy (TRP) is currently up 1.61 per cent and is trading at $59.85 per share, with a market cap of $56.14 billion
TC Energy (TSX:TRP) has provided an update on financing for its controversial Coastal GasLink Pipeline Project.
In today’s announcement, the Calgary-based energy provider revealed the completed sale of a 65 per cent equity interest in the project. A credit agreement with a syndicate of banks has also been executed, extending non-recourse project-level financing to cover the majority of construction costs.
With these transactions now complete, TC Energy has immediate access to roughly C$2.1 billion in financing.
The Coastal GasLink Project involves 670 kilometres of pipeline, connecting the Western Canadian Sedimentary Basin natural gas supply to the LNG Canada liquefaction and export facility under construction in Kitimat, British Columbia.
An initial capacity of 2.1 billion cubic feet per day is expected, and all regulatory permits have been secured with construction currently underway.
However, the project has been a source of significant controversy, with widespread protest over the pipeline’s intrusion into indigenous Canadian land. According to current estimates, approximately 28 per cent of the pipeline imposes on regions held by the Wet’suwet’en community.
As a result, protestors erected blockades across many British Columbian railways, which had a heavy impact on Canadian National Railway’s operations.
That said, TC Energy maintains its committed to partnering with the 20 First Nations, all of which it says have executed agreements regarding the Coastal GasLink Project.
The company noted that, under these agreements, an opportunity has been provided to acquire a 10 per cent equity interest in the project.
Despite these agreements, Wet’suwet’en chiefs remain opposed to the pipeline’s construction and say that they, not the community’s elected officials, hold authority over the traditional lands.
TC Energy (TRP) is currently up 1.61 per cent and is trading at $59.85 per share at 1:13pm EDT.
