TC Energy Corporation ( TRP ) shares are trading higher today. The company is reportedly close to selling a stake in its natural gas pipeline system to indigenous communities in Western Canada, with support from Alberta’s government.

A provincial agency has conditionally approved a C$1 billion ($726 million) loan guarantee to help the indigenous consortium finance the purchase, which includes communities from Alberta, British Columbia, and Saskatchewan, reported Bloomberg.

Related: TC Energy’s NGTL Pipeline Faces Pressure Reduction Order Despite Repaired Rupture: Report

The transaction is part of TC Energy’s asset sales strategy to cut debt following significant cost overruns on the Coastal GasLink pipeline.

TC Energy’s NGTL System, a 24,386-kilometer pipeline network, transports natural gas across Alberta and British Columbia for domestic and export markets.

TC Energy ( TRP ) plans to announce the transaction on July 30, with closing expected in late August, though legal, financial, and regulatory details are still pending.

Also Read: TC Energy Faces Setback In Pursuit Of NAFTA Damages: Details

Last year, TC Energy ( TRP ) surpassed its C$5 billion divestiture goal by selling a 40% stake in the Columbia Gas Transmission and Columbia Gulf Transmission networks in the US.

In June, shareholders of TC Energy ( TRP ) gave the green light to create a new energy infrastructure company called South Bow Corp, including assets such as the Keystone oil pipeline.

Investors can gain exposure to the stock via VanEck Energy Income ETF ( EINC ) and IPath Select MLP ETN .

Price Action: TRP shares are up 1.15% at $41.88 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.