- RBC may aid TransCanada in selling over 70% of its share in the Coastal GasLink project.
- TransCanada also plans to call in partners to fund its Keystone XL crude oil pipeline.
The Calgary-based TransCanada Corp., has reportedly announced that it has hired the RBC Capital Markets LLC that would help the energy firm sell as much as a 75% stake in the Coastal GasLink pipeline project. Credible sources claim that this project had been designed in order to supply natural gas to the LNG Canada facility situated on the West Coast, Kitimat from northeastern B.C.
An official statement by the company claims that TransCanada is strictly going forward with the declaration it made last year in November, wherein the company announced its intention of subsequently reducing its interest in the natural gas pipeline project (670-kilometre, 48-inch diameter) to somewhere between 25% and 49%.
According to a report by The Financial Post, if TransCanada moves ahead with the sale of the Coastal GasLink pipeline, valued at around $6.2 billion, it would be the firm’s largest divestment to date. Incidentally, the energy magnate is also awaiting an environmental review from U.S. regulators, for its decision to offload assets and bring partners onboard for funding its Keystone XL crude oil pipeline worth $10.6 billion.
It has been reported that the pipeline sale caused quite a bit of mayhem, when a resident of B.C. put forth an argument regarding the technical specifications and the energy company’s role in the operational authority. The resident in question stated that since TransCanada will be operating the pipeline together with the connected Nova Gas Transmission Ltd. system, that essentially form a single pipeline crossing the Alberta-B.C. boundary, the project in its entirety must be regulated by the federal government.
In response to the aforementioned assertion, TransCanada claimed that the very purpose of Coastal GasLink is to shift natural gas within the province, owing to which provincial approvals would appropriately suffice.