TC Vitality Corp. is transporting document pure fuel volumes on a number of pipeline programs in North America because it continues to advance numerous growth tasks, administration mentioned Wednesday.
CEO Françios Poirier hosted a convention name to debate the Calgary-based midstreamer’s third quarter earnings.
“We proceed to see robust, sustained demand for our companies, and that’s maximizing the worth of our belongings by means of security and operational effectivity,” Poirier advised analysts.
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Receipts on the Nova Gasoline Transmission Ltd. (NGTL) pipeline system in Western Canada averaged 14.0 Bcf/d throughout 3Q2023, up 0.5 Bcf/d from the identical interval final yr, Poirier highlighted. NGTL receipts additionally reached an all-time day by day excessive of 14.6 Bcf on Aug. 6.
Within the U.S. pure fuel pipelines enterprise, LNG deliveries averaged 3.1 Bcf/d, up 1.4% yr/yr. The U.S. phase additionally achieved a brand new document of deliveries to energy mills of 5.2 Bcf on July 28.
The Gasoline Transmission Northwest (GTN) system, in the meantime, achieved an all-time supply document of two.96 Bcf/d on July 25.
The Federal Vitality Regulatory Fee in October granted last approval of the GTN Xpress growth challenge, which might add 150 MMcf/d of capability to the system by means of compressor station upgrades.
TC mentioned it has positioned about C$5 billion ($3.62 billion) of tasks into service on its pure fuel and liquids pipelines programs. This contains “considerably all belongings” of the NGTL System/Foothills West Path Supply Program, which entered service on Nov. 1.
In October, TC accomplished the sale of a 40% non-controlling fairness curiosity in Columbia Gasoline Transmission LLC and Columbia Gulf Transmission LLC to World Infrastructure Companions for money proceeds of C$5.3 billion ($3.9 billion).
TC is planning an extra C$3 billion of divestitures, which is more likely to embrace the sale of partial stakes within the firm’s Mexico and Canada belongings, Poirier mentioned.
The two.1 Bcf/d Coastal GasLink (CGL) pipeline, which might provide Western Canadian fuel to the deliberate LNG Canada export terminal, reached mechanical completion in October and stays on observe with a price estimate of about C$14.5 billion or $10.5 billion.
“Throughout the third quarter, we made monumental progress on Coastal GasLink and have achieved mechanical completion forward of our year-end goal,” mentioned Poirier. “The staff’s distinctive security and development execution on this difficult challenge signifies that we have now reached 100% pipeline set up, together with the profitable hydrotesting of the complete 670 kilometer [416 mile] pipeline size.”
Poirier mentioned, “All through the rest of 2023, the challenge will full pipeline commissioning actions to be able to ship commissioning fuel to the LNG Canada facility by the top of the yr, and we’ll proceed reclamation work in 2024.”
TC additionally sanctioned the Bison Xpress growth on the Northern Border and Bison pipeline programs. Plans are to exchange and improve sure amenities, permitting extra pure fuel egress out of the Bakken Shale to a supply level on the Cheyenne hub within the Rocky Mountains.
In Mexico, in the meantime, the Southeast Gateway pure fuel pipeline “continues to progress to our $4.5 billion value estimate and schedule,” administration mentioned. “Land rights and rights of means negotiations have closed and all essential permits for onshore development have been acquired.”
The corporate mentioned it’s advancing development of onshore amenities and landfalls for Southeast Gateway. “Offshore engineering is full and offshore set up [is] anticipated to start previous to the top of 2023,” the agency added.
Additionally in Mexico, TC and anchor shipper Comisión Federal de Electricidad (CFE) are aiming for the ultimate part of the Villa de Reyes pipeline to enter service by the second half of 2024, Poirier mentioned.
The U.S. and Mexico pure fuel pipelines enterprise segments posted earnings of C$782 ($567 million) million and C$210 million ($152 million), respectively, whereas the Canadian pure fuel pipelines enterprise reported losses of C$799 million ($579 million).
The quarterly outcomes included an after-tax impairment cost of C$1.179 billion ($850 million) associated to TC’s fairness funding in CGL. The anticipated last value of the challenge has elevated a number of occasions due to numerous challenges.
TC reported a web lack of C$197 million (minus C19 cents/share) or $145 million (minus 14 cents) for the third quarter. This compares to a revenue of C$800 million (C84 cents/share) in the identical interval final yr.
The submit TC Vitality Touts Report NGTL Pure Gasoline Volumes, New Challenge Approvals appeared first on Pure Gasoline Intelligence