WINNIPEG, Manitoba, July 27 (Reuters) – North American pipeline company TC Energy (TRP.TO), which has been seeking to sell assets and cut debt, said on Thursday it would spin off its oil pipeline business and focus on transporting natural gas, saying the businesses would be more valuable apart.
TC said it expected to complete the spinoff in the second half of 2024.
Calgary, Alberta-based TC previously disclosed plans to sell assets this year to reduce debt and fund its other projects such as the Coastal GasLink pipeline in British Columbia, which is grappling with major cost overruns. On Monday it said it would divest a 40% interest in its Columbia Gas Transmission and Columbia Gulf Transmission pipelines for C$5.2 billion ($3.95 billion) to Global Infrastructure Partners (GIP).
TC’s liquids business is best known for its Keystone pipeline, an oil conduit from Alberta to U.S. refineries that leaked in Kansas late last year.
TC said in a statement that the split would generate greater shareholder value by allowing each company to focus on their own growth and operations.
Reporting by Rod Nickel in Winnipeg, Manitoba; editing by Jonathan Oatis and Diane Craft
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