Advertisement

TC Energy inks deal to sell stake in Northern Courier pipeline to AIMCo for $1.15B

TransCanada president and CEO Russ Girling addresses the company's annual meeting after shareholders approved a name change to TC Energy in Calgary on May 3, 2019. THE CANADIAN PRESS/Jeff McIntosh

TC Energy Corp. has signed a deal to sell an 85 per cent stake in its Northern Courier Pipeline to Alberta Investment Management Corp. for roughly $1.15 billion.

The company formerly known as TransCanada says the 90 kilometre pipeline transports bitumen and diluent between the Fort Hills mine site in northern Alberta and Suncor Energy’s terminal north of Fort McMurray, Alta.

READ MORE: Northern Courier line approved

Watch below: Some videos from Global News’ coverage of pipelines in Canada.

Story continues below advertisement

TC Energy will retain a 15 per cent stake and remain the operator of the pipeline.

The transaction is expected to close in the third quarter.

TC Energy chief executive Russ Girling says the sale helps the company’s efforts to fund its capital program.

READ MORE: TransCanada name change to TC Energy ‘de-emphasizes’ Canada for leery investors: analyst

The company recently completed the sale of its Coolidge Generating Station in Arizona to Salt River Project Agriculture Improvement and Power District.

Sponsored content