TC Energy Corporation sold 65 per cent equity interest in the Coastal GasLink Pipeline project.
Additionally, the Coastal GasLink Pipeline partnership 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.
Together, these transactions have resulted in the company realizing immediate proceeds of approximately CAD$2.1 billion ($1.5 billion), TC Energy said.
To remind, the Coastal GasLink project involves the construction of 670 kilometres of pipeline and associated facilities with an initial capacity of 2.1 billion cubic feet per day.
It will connect Western Canada Sedimentary Basin natural gas supply from the Dawson Creek, B.C. area to the LNG Canada liquefaction and export facility being constructed in Kitimat, British Columbia.
TC Energy added has also provided the opportunity to 20 First Nations to invest in the project with an option to acquire a 10 per cent equity interest on similar terms as the 65 per cent interest.
The project received all the regulatory permits with the construction already underway.