TC Energy says earnings steady on strong throughput
Canadian energy infrastructure company TC Energy said November 9 its net income in Q3 2022 was steady against year ago earnings, reflecting solid system utilisation in meeting North American energy demand.
Net income attributable to common shares was unchanged year-over-year, at C$800mn (US$595mn), while comparable earnings rose slightly, to C$1.1bn from C$1bn in Q3 2021. Comparable earnings increased to C$2.5bn from C$2.2bn.
“Our portfolio remains resilient despite the economic headwinds facing the broader market,” CEO Francois Poirier said. “Demand for our services across our North American portfolio remains high and we continue to see strong utilisation, availability, and overall asset performance.”
Deliveries on TC Energy’s Nova Gas Transmission Limited (NGTL) system in western Canada were up 4% from the third quarter last year, to 12.4bn ft3/day, while pipeline flows in the US averaged 25.8bn ft3/day, a 6% increase. During the quarter, TC Energy phased its Louisiana XPress expansion into service, increasing the company’s market share from 25% to 30% of volumes destined for export through third-party LNG facilities.
TC Energy has about C$34bn of secured capital projects, and it expects to sanction about C$5bn of projects each year through the decade.
In Canada, it sanctioned in November its C$600mn, 500mn ft3/day VNBR project on the NGTL system which will use electric compression to ensure connectivity between the Western Canadian Sedimentary Basin and key demand markets. In the US, the US$400mn Gillis Access Project, a 1.5bn ft3/day header project, will connect supply from the Haynesville shale basin in east Texas and western Louisiana to the expanding Gulf Coast LNG market.
Subject to all approvals, Gillis Access should be in-service in 2024, while the VNBR project, which will be submitted to the Canada Energy Regulator in Q3 2023, could be in-service in 2026.
And in Mexico, TC Energy has executed a strategic alliance with Mexico’s state-owned electric utility, CFE, to jointly develop the US$4.5bn Southeast Gateway pipeline, which will provide 1.3bn ft3/day of offshore pipeline capacity to serve markets in Mexico’s southeast region. It is expected to be in-service by mid-2025.