TC Energy Corp. announced a C$2.87 billion ($2.2 billion) sale Tuesday of three Ontario natural gas-fired power plants and earmarked the proceeds for growth projects in Canada, the United States and Mexico.
The deal with Ontario Power Generation Inc. will raise total 2019 asset sales to C$6.3 billion ($4.7 billion) counting U.S. transactions in the electricity and “midstream” fossil fuel processing sectors, TC said.
The Calgary-based pipeline and power conglomerate added that it continues to hold 4,200 MW of generating capacity and intends to continue participating in gas-fired and nuclear power plants.
The biggest item in the TC power portfolio, the Bruce nuclear plant, generates 30% of Ontario electricity and is in the midst of a C$2.2 billion ($1.6 billion) life extension overhaul.
Natural gas and oil pipelines dominate the firm’s current C$30 billion ($22.5 billion) growth program, which the asset sales will support.
“We remain interested in new low-risk investment opportunities in the electricity sector within our core North American markets,” said CEO Russ Girling.