TC Energy to sell U.S. natural gas assets for $1.7B

TC Energy announced late Tuesday it plans to sell four U.S. natural gas gathering systems and a company that gathers and processes natural gas for $1.7 billion.

The Calgary-based company, which was formerly called TransCanada,said the assets, which are held by subsidiary Columbia Midstream Group, will be sold to UGI Energy Services in a transaction set to close in the third quarter of this year, subject to regulatory approvals.

The company said the assets connect production to markets in western Pennsylvania, eastern Ohio and northern West Virginia.

Russ Girling, TC Energy's president and CEO, said in an emailed statement that the sale, along with two other recent sales,will give the company $3.4 billion in proceeds to help fund its $30 billion in planned projects.

The other two are the sale of theCoolidge power station in Arizona and an 85 per centstake in theNorthern Courier pipeline.

"The sale of Columbia Midstream Group advances our ongoing efforts to prudently fund our industry-leading portfolio of high-quality natural gas pipeline, liquids pipelines and power generation projects, while maximizing value for our shareholders," Girling said in an emailed release.