TC Energy Corp. reported a fall in quarterly net income, though revealed a long-awaited settlement with the Shell-led LNG Canada project of a dispute over a revised schedule for the Coastal GasLink pipeline because of disruptions caused by Covid-19 and other issues.
TC Energy also said in its earnings statement that the Coastal GasLink from the Montney Shale Basin in northeast British Columbia to the Pacific Coast for the LNG Canada project at Kitimat was now about 70 percent complete.
The company said second-quarter net income dropped to C$889 million (US$691M) compared with C$975M in the second quarter of 2021.
“Our revised agreements with LNG Canada establish a better framework for project advancement and further strengthen our long-term partnership,” said TC Energy.
“The agreements resolve uncertainty over specific and anticipated costs, mitigate project funding and execution risks and allow us to continue the safe and timely execution of the project,” it added.
While net income dropped, gross earnings from its pipeline businesses in the US, Canada and Mexico and power and storage units increased to C$2.37 billion from C$2.24Bln in the prior-year quarter.
“Through the first six months of 2022, we have delivered strong results reflecting the high utilization we continue to see across our entire system,” said TC Energy's President and Chief Executive François Poirier.
“Demand for clean, responsibly sourced natural gas remains high in North America, with energy security also driving incremental growth in the global LNG market,” added the CEO.
Back on track
“I am pleased to report we have reached a significant milestone with the Coastal GasLink Limited Partnership (Coastal GasLink LP), signing revised agreements with LNG Canada that will allow the safe and timely execution of our largest LNG-linked project,” explained Poirier.
“The 670-kilometre Coastal GasLink project is approximately 70 percent complete, with mechanical in-service expected by the end of 2023,” he stated.
The company said the Wilde Lake compressor facility near Chetwynd at the eastern end of the route was also nearing completion, representing one of the most significant pieces of infrastructure on the project.
Together with LNG Canada, the 2.1 Bcf per day pipeline will provide the first direct path for Western Canadian natural gas to reach global LNG markets in Asia and displace coal-fired power.
The Calgary, Alberta-based company stated that it also continued to deliver around a quarter of volumes destined for export from US LNG liquefaction plants through its US Natural Gas Pipelines and advanced 3.3 billion cubic feet per day of additional projects during the first six months of 2022.
Its US Natural Gas Pipelines flows averaged 25.4 Bcf per day, up over 3 percent, compared with the second quarter of 2021.
“By leveraging our competitive strengths, we continue to develop solutions to move, generate and store the energy North America relies on in a secure and increasingly sustainable way,” the CEO concluded.