SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Management of the Partnership has reviewed subsequent events through August 5, 2020, the date the consolidated financial statements were issued, and concluded there were no events or transactions during this period that would require recognition or disclosure in the consolidated financial statements other than what is disclosed here and/or those already disclosed in the preceding notes.

On July 23, 2020, the board of directors of the General Partner declared the Partnership’s second quarter 2020 cash distribution in the amount of $0.65 per common unit payable on August 14, 2020 to unitholders of record as of August 3, 2020. The declared distribution totaled $47 million and is payable in the following manner: $46 million to common unitholders (including $4 million to the General Partner as a holder of 5,797,106 common units and $7 million to another subsidiary of TC Energy as holder of 11,287,725 common units) and $1 million to the General Partner for its two percent general partner interest. The General Partner did not receive any distributions in respect of its IDRs for the second quarter of 2020.

Northern Border declared its June 2020 distribution of $11 million on July 9 2020, of which the Partnership received its 50 percent share or $5 million on July 31, 2020.

Great Lakes declared its second quarter 2020 distribution of $24 million on July 15, 2020, of which the Partnership received its 46.45 percent share or $11 million on July 31, 2020.

Iroquois declared its second quarter 2020 distribution of $21 million on August 4, 2020, of which the Partnership will receive its 49.34 percent share or $10 million on September 29, 2020.

PNGTS declared its second quarter 2020 distribution of $14 million on July 8, 2020, of which $5 million was paid to its non-controlling interest owner on July 31, 2020.

On August 1, 2020, GTN, Great Lakes, Tuscarora and North Baja entered into a purchase agreement with a TC Energy affiliate to purchase an internally developed customer-facing commercial natural gas transmission IT application that maintains and manages customer contracts, natural gas capacity release, customer nominations, metering and billings. The total value of the transaction was $51 million and the Partnership's proportionate share of the cost was $38 million. Prior to the transaction close, GTN, Great Lakes, Tuscarora and North Baja paid the affiliate for the use of this system and the costs are included in the "Impact on Partnership's income" tabular summary under Note 12.