​Abu Dhabi wealth fund interested in buying into Coastal GasLink: report

Image: Joey Podlubny/JWN

The Coastal GasLink project, a major Canadian natural gas pipeline TC Energy Corp. is selling, has drawn interest from potential investors including Mubadala Investment Co., according to people familiar with the matter.

Coastal GasLink will connect gas fields in B.C.’s prolific Montney shale formation with the C$40 billion LNG Canada project on British Columbia’s coast.

Mubadala, Abu Dhabi’s sovereign wealth fund, spent about $19 billion last year expanding into new industries as it seeks to diversify its economy.

“TC Energy does not comment on market rumours,” the Calgary-based company said in a statement.

“As has been previously reported in our quarterly financial disclosures, we continue to advance funding plans for our Coastal GasLink Project including the potential sale of an ownership interest and project financing.”

A representative for Mubadala declined to comment.

Other suitors are circling the asset, said the people, who asked to not be identified because the matter isn’t public.

TC Energy, which changed its name in May from TransCanada Corp., is working with an adviser to sell up to 75% of Coastal GasLink, which is estimated to cost C$6.2 billion ($4.7 billion) to build, it said in a regulatory filing in January. It’s not clear how much the stake would fetch in a sale.

The 670-kilometer (416 miles) long pipeline is expected to go into service in 2023.

TC Energy has been selling assets to strengthen its balance sheet and fund capital projects, following its $10.2 billion takeover in 2016 of Columbia Pipeline Group Inc.

© 2019 Bloomberg L.P.

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