TC Energy said Tuesday it’s entered into a deal via its TransCanada Energy Ltd. unit to sell interests in three Ontario natural gas-fired power plants to a subsidiary of Ontario Power Generation for roughly $2.87 billion, Kallanish Energy reports.
The facilities include the 683-megawatt Halton Hills power plant, the 900 MW Napanee generating station which is nearing completion, and TC Energy’s 50% interest in the 550 MW Portlands Energy Centre.
“The sale of these facilities is part of our ongoing efforts to maximize value for our shareholders and fund our industry-leading secured growth program in a disciplined manner,” said Russ Girling, TC Energy president and CEO.
When combined with the Coolidge, Northern Courier and U.S. Midstream asset monetizations, TC Energy now expects to realize roughly $6.3 billion from portfolio management activities in 2019 that will be used to help fund its near-term capital program and further strengthen its financial position.
“Looking forward, we expect our strong operating and financial performance to continue as we are well-positioned to fund our $30 billion secured capital program with a focus on per-share measures and in a manner consistent with achieving targeted credit metrics in 2019 and thereafter,” Girling added.
The transaction is expected to close in late 2019 subject to a number of closing conditions which include regulatory approvals and Napanee reaching commercial operations as outlined in the agreement.
This post appeared first on Kallanish Energy News.