(Bloomberg) -- Coastal GasLink LP, a pipeline project in Western Canada, is talking to investors about a possible jumbo high-grade bond sale, according to people familiar with the matter.  

The transaction for the Calgary-based company, which is operated by TC Energy Corp., may be as large as C$4 billion ($2.9 billion), said the people, speaking on condition they not be identified because the matter is still private. The lower end of the range being discussed is C$3 billion, they said.

The deal may take place in early June and will be part of the Canadian pipeline company’s C$9 billion fixed-income financing plan, the people said. The offering will likely include multiple tranches, including an amortizing bond, they added.

TC Energy did not comment.

KKR & Co. and Alberta Investment Management Corp. own a 65% stake in Coastal GasLink. TC Energy owns the other 35%. The natural gas pipeline supplies the Shell-led LNG Canada export terminal in British Columbia.

The pipeline will bring natural gas across the Canadian Rockies to a facility in Kitimat, British Columbia, where it will be turned into liquefied natural gas and shipped mostly to Asia once the terminal is operational.

Read More: Coastal GasLink Is Fully Built in Positive Sign for LNG Canada

--With assistance from Robert Tuttle and Geoffrey Morgan.

(Updates with deal details in the third paragraph)

©2024 Bloomberg L.P.