KKR and AIMCo acquires 65% of Canadian pipeline project

26 December 2019 - 12:00 am UTC

KKR and the Alberta Investment Management Company (AIMco) acquired a 65% stake in the Coastal GasLink Pipeline project from TC Energy Corporation, both parties said on 26 December.

TC Energy said It expects to record an after-tax gain of roughly CAD 600m (USD 456.55m) upon the closing of the transaction, including the gain on sale, required revaluation of residual ownership interest to fair market value and recognition of previously unrecorded tax benefits.

Coastal GasLink involved the estimated CAD 6.6bn construction of a 670km natural gas pipeline and associated facilities. Once completed, the pipeline will have an initial capacity of 2.1bn cubic feet per day and connect the Western Canadian Sedimentary Basin natural gas supply from the Dawson Creek BC area to the LNG Canada liquefaction and export facility being constructed in Kitimat, BC.

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