05:14 PM EDT, 03/14/2024 (MT Newswires) -- TC Energy Corporation ( TRP ) entered Thursday into a binding letter agreement with Nisga'a Nation and Western LNG (the Buyers) regarding the purchase and sale of all outstanding shares in Prince Rupert Gas Transmission Holdings Ltd. and the limited partnership interests in Prince Rupert Gas Transmission Limited Partnership.

A statement noted that PRGT is a wholly owned subsidiary of TC Energy ( TRP ) and the developer of a natural gas pipeline project in British Columbia and "potential delivery corridor that would further unlock Canada as a secure, affordable and sustainable source of LNG."

TRP said this transaction "demonstrates its resolve toward delivering its 2024 strategic priorities while facilitating the development of critical energy infrastructure". TRP noted its "strategic priorities are focused on staying within its US$6-$7 billion annual net capital expenditure limit, post-2024, maximizing the value of its assets and further enhancing the strength and flexibility of its balance sheet". It added: "This agreement fits with those priorities and more."

As part of the letter agreement, TC Energy ( TRP ) has "committed to provide transition services, on a reimbursable basis, to facilitate the seamless transition of the pipeline project and support development work planned for this year". Subject to the execution of definitive agreements and customary closing conditions, the transaction is expected to close in the second quarter of 2024. Initial proceeds from the transaction are not expected to be material to TC Energy ( TRP ), with the potential to receive additional payments contingent upon the project achieving final investment decision and commercial operation.