LNG

Canada must mobilise $500 billion in energy infrastructure by 2030 to capture a “generational, time-bound opportunity” in global LNG exports – or lose out to rival US developers, said TC Energy CEO François Poirier.

TC Energy, the North American natural gas pipelines operator with US and Mexican pipelines and the Coastal GasLink to supply Canadian LNG projects, is now counting the cost of the Biden Administration’s 2021 cancellation of the Keystone XL oil pipeline from Canada to the US Midwest.

Fluor Corp. of US and Japan’s JGC Corp. of Japan have completed the final weld on first liquefaction Train at the LNG Canada joint venture at Kitimat on the Pacific Coast province of British Columbia.

Malaysian state energy company Petronas said the company was expanding its LNG fleet by three vessels to handle cargoes from the LNG Canada export project in British Colombia where Petronas is a shareholder.

Samsung Heavy Industries (SHI), the South Korean shipbuilder, has put a value of US$1.5 billion on the floating liquefied natural gas (FLNG) facility recently ordered for the Canadian Cedar LNG joint venture in the Douglas Channel near Kitimat in British Columbia and modelled on an African FLNG vessel.

Canadian Spirit Resources Inc., which recently reactivated natural gas production at Farrell Creek in Northeast British Columbia, is aiming for a share in supplying feed gas to regional LNG export projects as it outlined the advantages and challenges of operating in the Montney Shale basin.

TC Energy Corp., whose activities include the building and ownership of pipelines in the US, Mexico and Canada and the LNG project called Coastal GasLink in British Columbia, has held an investor day with forecasts of a surge in feed gas for US Gulf Coast LNG and more progress on the spin-off of its liquids business.

TC Energy’s five divisions include Canadian Natural Gas Pipelines, US Natural Gas Pipeline, Mexican Natural gas Pipeline, Liquids Pipeline and Energy and Power Solutions.

François Poirier, TC Energy’s President and Chief Executive, told investors that the Coastal GasLink was completed while its US Southeast Gateway venture was on track for costs and schedule.

TC Energy’s presentation showed that the Calgary-based company was providing 30 percent of US LNG feed gas which is set to surge to 40 billion cubic feet per day of supply for liquefaction in the years ahead.

LNG wave

“We are well positioned to capture the next wave of LNG exports,” said the CEO.

At the start of October 2023 TC Energy completed the sale of 40 percent stakes for a total of C$5.3 billion (US$3.9Bln) in two US assets, Columbia Gas Transmission and Columbia Gulf Transmission, transporters of 20 percent of US LNG feed-gas volumes.

The company confirmed that the Columbia Gas and Columbia Gulf transactions were completed to the buyer, the New York-headquartered asset management firm Global Infrastructure Partners.

The Columbia Gas and Columbia Gulf pipelines span more than 15,000 miles across the North American natural gas network and are underpinned by strong long-term natural gas supplies and a rate-regulated commercial framework.

Southeast Gateway

“The Southeast Gateway Pipeline project continues to progress with its US$4.5Bln cost estimate and schedule,” said the company.

“TC Energy has made significant progress against its 2023 priorities, including project execution, deleveraging and maximizing the value of its asset base, which continues to generate excellent operational and financial results through all points in the economic cycle,” investors were told.

They were also told that the Liquids Pipelines business spin-off would be called South Bow Corp.

“South Bow symbolizes the historical roots of the company in Alberta, Canada, while acknowledging the pipeline system's strategic path southwards to the strongest US refining markets in the Gulf Coast and Midwest,” stated TC Energy.

“After a strong October and reflecting strength in the US dollar, the 2023 comparable EBITDA is now expected to be approximately 8 percent higher than 2022,” the company explained.

2024 priorities

“The company reaffirms its priority areas for 2024 and provides its expected comparable EBITDA growth outlook of 5 percent to 7 percent from 2023 to 2024, excluding any potential impact of its announced asset divestiture program, and prior to giving effect to the spin-off, which is expected to take place in the second half of 2024,” said TC Energy.

CEO Poirier added that over the past few years, TC Energy has been strategically pivoting capital to optimize its portfolio, leveraging core competencies and capturing the long-term growth potential in the natural gas and power businesses.

“Focusing on the value that can be delivered with two distinct strategies, the spin-off will unlock the evident value we see from each company’s unique opportunity set,” the CEO added.

“Subject to the requisite shareholder and regulatory approvals, upon closing of the spin-off transaction, South Bow is poised to be a low-risk liquids transportation and storage business, and with its anticipated investment-grade credit ratings, it can respond quickly in a market where it holds significant competitive advantages,” Poirier declared. 

The Premier of the Canadian oil and gas province of Alberta said the provincial government aimed to invoke the sovereignty act to reject Federal clean energy regulations aimed at Alberta’s gas-fired power plants.

TC Energy, the North American pipeline company and key supplier of feed gas for the liquefied natural gas industry, plans to split up by spinning off its oil pipeline business and focusing on transporting natural gas.

TC Energy, the natural gas pipeline company with assets in the US and Mexico and involved in projects like LNG Canada, expects to appeal court rulings in the US state of Delaware related to the US$13 billion acquisition in 2016 of US Columbia Pipeline Group under TC Energy’s previous name TransCanada Corp.