LNG

TC Energy Corp, one of the largest North American pipeline companies, said the Canadian federal government approved the expansion of the Nova Gas Transmission Ltd (NGTL) system moving the huge natural gas resources from the Western Canadian Sedimentary Basin to markets.

TC Energy Corp., the leading North American pipeline company supplying natural gas to the US and Mexico and feed-gas for projects such as LNG Canada, has announced the retirement of President and Chief Executive Russ Girling.

The CEO will step down from his posts and the board of the Calgary, Alberta-based company at the end of December.

His replacement has been named as François Poirier, currently Chief Operating Officer and President of TC Energy’s Power & Storage and Mexican divisions.

Girling will assist Poirier with the transition through February 28, 2021.

One of TC Energy’s main current projects is building the Coastal GasLink Pipeline from Dawson Creek to the Royal Dutch Shell-led LNG Canada project at Kitimat in British Columbia.

Among its many other ventures in North America, the Canadian company is a shareholder in the South Texas-Tuxpan pipeline with Sempra Energy’s IEnova. The pipeline crosses part of the Gulf of Mexico from Texas and was built at a cost of $2.5 billion for US exports to Mexico.

“On behalf of all Board members, I would like to thank Russ for his invaluable contributions to the company,” said Siim Vanaselja, TC Energy's Board Chairman.

“Over the last decade, he has led TC Energy through a period of unprecedented growth and transformation, including the development of its Liquids pipelines footprint, expansion of its Mexican natural gas pipelines business, the successful US$13 billion acquisition of Columbia Pipeline Group and advancement of North American LNG,” stated the Board Chairman.

Vanaselja praised Girling for creating “a culture of excellence” focused first on the safety of employees and those in the communities where the company operates.

“It has been a privilege and honour to lead TC Energy over the past 10 years and to be part of the extraordinary TC team,” said Girling.

“With the wisdom and guidance of the Board and the skills and tenacity of our dedicated employees, we have accomplished many things, delivered the energy critical to millions of people safely and reliably every day, and created significant shareholder value,” stated Girling.

“I am grateful for the opportunity and confident in how the Company is positioned to prosper as global demand for energy continues to grow and transition in the years ahead,” Girling concluded.

Vanaselja said he was confident in the choice of François Poirier as Girling’s successor having seen his leadership over six years at TC Energy.

“He has had exposure to all aspects of our business and consistently shown unwavering commitment to the company’s long-term success. His integrity, strategic thinking, commercial acumen and bottom-line focus will serve the Company well in the years ahead,” stated the Chairman. 

TC Energy Corp., the Canada-based North American pipeline company building the Coastal GasLink Pipeline from Dawson Creek to the Royal Dutch Shell-led LNG Canada project at Kitimat in British Columbia, has given a detailed update on work.

TC Energy’s summary of progress on the LNG feed-gas connection came as it reported second-quarter net income of C$1.3 billion (US$937 million) compared with C$1.1Bln (US$880M) in profits for the same period in 2019.

The company stated that it did not expect the Covid-19 pandemic to have any material negative impact on 2020 earnings or cash flows as most of its earnings come from long-term contracts.

For the six months to the end of June TC Energy reported net profits of C$2.4Bln versus C$2.1Bln in the first half of 2019.

The pipeline will be 670 kilometres (416 miles) in length, running from the Dawson Creek area of northeast BC to the Pacific coastal town of Kitimat where the liquefaction plant is being constructed.

Once completed, the pipeline will connect abundant Western Canadian Sedimentary Basin natural gas supply to the Shell-operated liquefaction plant.

TC Energy completed project financing after the sale of stakes to equity funds, allowing a full work programme to go ahead.

The transaction released proceeds of around C$2.1 billion (US$1.5Bln) for the Calgary-based operator from the sale to two equity funds, KKR-Keats Pipeline Investors II (Canada) Ltd. (KKR) and a subsidiary of Alberta Investment Management Corp. (AIMCo).

Shell and its four partners in LNG Canada, Mitsubishi Corp. of Japan, Malaysian energy company Petronas, Chinese major PetroChina and Korea Gas Corp., have already started construction of the liquefaction plant and affiliated facilities.

The plant is being built on a brownfield site near Kitimat that had been an energy products terminal before being acquired by Shell in 2011.

The Shell-led export project is working closely with the Haisla First Nation whose traditional lands are in the Kitimat coastal region as well as with other First Nations along the pipeline route.

TC Energy has said it remained committed to partnering with the 20 First Nations who have executed agreements with Coastal GasLink project.

The company has provided an opportunity for them to invest in the project with an option to acquire a 10 percent equity interest in Coastal GasLink.

“The introduction of partners, establishment of dedicated project-level financing facilities, recovery of cash payments through construction for carrying charges on costs incurred and remuneration for costs to date are expected to substantially satisfy our funding requirements through project completion,” explained TC Energy.

“We continue to work with the 20 First Nations that have executed agreements with Coastal GasLink to provide them an opportunity to invest in the project, with an option to acquire a 10 percent equity on similar terms to what has been agreed with KKR and AIMCo,” said the company.

TC Energy said that field activity continued to increase across the project following the spring thaw, with crews re-mobilizing while incorporating Covid-19 guidelines for construction safety.

“Ongoing work activity includes construction of roads, bridges, worker accommodation and right of way grading,” said TC Energy.

Pipe delivery continues with more than 50 percent of required pipe supply having arrived on site and mainline mechanical construction is now starting.

“The project is currently conducting a review of baseline cost and schedule to incorporate scope increases, permit delays and Covid-19 impacts,” added TC Energy.

The Calgary-based company had also announced that it would proceed to build the Keystone XL oil pipeline and commenced construction in April 2020.

“During the first half of 2020, our diversified portfolio of essential energy infrastructure continued to perform very well,” said Russ Girling, TC Energy’s President and Chief Executive.

”I am proud that in these unprecedented times we have continued to deliver the energy and advance projects vital to powering our industries and institutions as well as to the daily life and mobility of millions of North Americans,” added the CEO.

The company stated that despite the challenges brought about by Covid-19, TC Energy's assets “have been largely unimpacted”.

“With few exceptions, flows and utilization levels remain in line with historical and seasonal norms, underscoring their criticality to North American consumers, institutions and commerce,” stated the company.

TC Energy previously announced that it would proceed with construction of the Keystone XL oil pipeline, resulting in an expected additional investment of approximately US$8Bln.

This 1,947km (1210-mile) pipeline will be capable of safely delivering 830,000 barrels per day of crude oil from Hardisty in the Canadian province of Alberta, to the US state of Nebraska.

It will then connect with existing facilities to reach US Gulf Coast refiners to meet critical needs for transportation fuel and manufactured products. Keystone XL is expected to be placed into service in 2023.


The company said that as part of the funding plan, the Government of Alberta has agreed to invest around US$1.1Bln as equity in Keystone XL which substantially covers planned construction costs through the end of 2020.

TC Energy will close the sale of a majority stake in the Coastal GasLink Pipeline to two equity funds by June and will also offer 20 Canadian First Nations a 10 percent share of the project to bring feed-gas for LNG processing on the Pacific Coast of British Columbia.

TC Energy Corp., the Canada-based North American pipeline network company, has filed an application with the Canada Energy Regulator (CRE) for approval of a six-year negotiated and unanimously supported agreement with its customers and other interested parties on Canadian Mainline tolls.

TC Energy, the Canadian pipeline company building feed-gas links to LNG projects in North America, is planning huge investments to transport more Appalachian shale gas and constructing the Coastal Gaslink in British Colombia as well as the natural gas “infrastructure backbone” of Mexico.

TC Energy of Canada, one of the major natural gas pipelines owners and operators in North America, said it had agreed to sell its gas-fired power plants in the province of Ontario for around C$2.87 billion (US$2.18Bln) to raise cash for projects to deliver feed-gas to LNG plants under development.

TC Energy said it was selling two natural gas-fired power plants and a 50 percent stake in a third facility to Ontario Power Generation Inc.

The sale includes the 900-megawatt Napanee generating station, the 683-MW Halton Hills plant and half of the 550-MW Portlands Energy Centre in Toronto.

TC Energy said the it would be using the funds to pay for “near-term” capital projects.

These include the construction of the Coastal GasLink Pipeline, connecting gas production in the Montney shale basin of northeast British Columbia with the US$40Bln LNG Canada project, led by Royal Dutch Shell, in the town of Kitimat.

TC Energy is selling a total of C$6.3Bln of assets in 2019 and using the cash to fund its growth programme and “further strengthen its financial position.” The company had C$35.8Bln in long-term debt at the end of the first quarter.

“The sale of these facilities is part of our ongoing efforts to maximize value for our shareholders and fund our industry-leading secured growth program in a disciplined manner,” said Russ Girling, TC Energy President and Chief Executive.

“We continue to be a significant private sector power generator in Canada and are committed to the ongoing multi-billion-dollar life-extension program at the Bruce Power nuclear facility in Ontario,” he added.

“In addition, we remain interested in new low-risk investment opportunities in the electricity sector within our core North American markets,” stated Girling.

TC Energy agreed earlier in July to sell US shale basin midstream assets held by its subsidiary Columbia Midstream Group for US$1.27 billion to UGI Energy Services of the US.

TC Energy, which recently changed its name from TransCanada Corp., said the transaction was expected to close in the third quarter.

Columbia Midstream, which operates in the Appalachian Basin, owns four natural gas gathering systems and an interest in a company with gathering, processing and liquids assets.

However, TC Energy emphasized it would continue to own and operate its significant network of interstate pipelines in the Appalachia with its Columbia Gas Transmission system, which transports low-cost natural gas supplies from the shale production region to markets in the US, including LNG export facilities.

“Looking forward, we expect our strong operating and financial performance to continue as we are well positioned to fund our C$30Bln secured capital program, stated Girling.

Jan 9 (LNGJ) - TransCanada Corp., the pipeline company with natural gas and other infrastructure in Canada, the US and Mexico has decided to change its name to TC Energy “to better reflect the scope of the company’s operations” as a leading North American energy player. TransCanada’s shareholders will be asked to approve a special resolution to change the name at the company’s next annual meeting to be held in the second quarter of 2019. “TC Energy better reflects the breadth of our business and acknowledges our proud history of safely and responsibly delivering the energy that millions of North Americans rely on every day,” said Russ Girling, TransCanada’s President and Chief Executive. “We believe the name TC Energy clearly articulates our complete business - pipelines, power generation and energy storage operations - and reflects our continued continental growth,” added Girling.

TransCanada Corp. is advancing plans to be a key US LNG project feed-gas transporter and is selling its power business to help finance expansion into resource areas such as the Marcellus Shale, the US Gulf Coast and pipeline exports to Mexico to offset the hold-ups in Canadian LNG and other energy projects.