TC Energy Corp. and its partner have signed a deal to sell the Portland Natural Gas Transmission System for US$1.14 billion including the assumption of US$250 million in debt.

The buyer is BlackRock, through a fund managed by its diversified infrastructure business, and investment funds managed by Morgan Stanley Infrastructure Partners.

TC Energy holds a 61.7 per cent stake in PNGTS, while a subsidiary of Énergir LP owns 38.3 per cent.

PNGTS is a 475-kilometre natural gas pipeline system that serves the upper New England and Atlantic Canada markets. 

It receives natural gas from the Trans Quebec and Maritimes Pipeline via the Canadian Mainline. 

The sale is expected to close in mid-2024, subject to regulatory approvals and customary closing conditions.

This report by The Canadian Press was first published March 4, 2024.