Midstream

TC Energy to boots natural gas export through new expansion strategy

TC Energy pipeline

TC Energy, the Calgary-based midstream company, has plans to boost its natural gas exports to California, Nevada, Oregon and Washington, through a new expansion strategy that would lower the regulatory risk of previous projects.

Firstly, the strategy is called West Path; TC Energy president Francois Poirier presented it during a spring investment forum; held by the Scotiabank CAPP Energy Symposium that was cosponsored by the Canadian Association of Petroleum Producers.

Secondly, during the event, Poirier underlined that West Path will avoid repeating the environmental, political and regulatory risks of projects like Keystone XL or Energy East; which got canceled in the U.S. and Canada respectively.

Thirdly, West Path’s approach would be a more “in-corridor” and “bolt-on” pipeline additions to current network; and where stakeholders, politicians and others are already familiar with gas deliveries.

Consequently, TC Energy expects to invest around C$1,2 billion, or USD$ 960 million in Canada, and $335 million in the U.S. Such move would increase gas exports by about 260 MMcf/d or 10% through a delivery network dating back to 1961.

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TC Energy

TC Energy to compete in natural gas markets

In fact, this package of additions has several additions already in construction phase; and involve TC Energy’s subsidiaries Foothills Pipe Lines; also, Nova Gas Transmission Ltd.; and Gas Transmission Northwest Pipeline.

Moreover, the Canada Energy Regulator (CER) already approved a $106 million expansion for Foothills; which will be operational by 2022. This expansion involves 100 MMcf/d of further capacity.

Moreover, according to specialized media, the approval will also seek to add further 160 MMcf/d of capacity; equivalent to a $322 million investment, scheduled for 2023.

Indeed, the West Path strategy of TC Energy is not relying only on total gas use to rise in a U.S. region; as the new president is aggressively moving towards renewables. Instead, it pretends to be a powerful competitor on Canadian gas markets.

Finally, The Western Canada Sedimentary Basin (WCSB) will continue to be a cost competitive source of natural gas for consumers in these markets. This level of interest also reflects strong commitment in contracting to the downstream markets served by Foothills.” Said Foothills in a filing.

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