TransCanada at Work on a Lot More Projects than just Keystone XL

Researched by Industrial Info Resources (Sugar Land, Texas)--Speaking at a rally at a massive Boeing aircraft manufacturing plant in North Carolina on Friday, President Donald Trump mentioned his directive to expedite the permitting of the Keystone XL Pipeline project, saying its developers would have to buy American steel. While the $8 billion pipeline project has garnered a lot of attention of late, it makes up only a portion of what TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) plans to spend on various projects in coming years. Last week, TransCanada executives outlined the company's planned capital expenditures, which include C$23 billion (US$18 billion) of near-term projects and C$48 billion (US$37 billion) of commercially secured medium and longer-term projects.

Speaking at TransCanada's fourth-quarter 2016 earnings presentation, Chief Executive Officer Russell Girling said the near-term commercially secured projects--those expected to be in service by 2020--include about C$19 billion (US$15 billion) of natural gas pipeline expansions that are driven by growth in North American natural gas supply in the Marcellus and Utica as well as the Western Canadian Sedimentary Basin, along with demand in growth in places like Mexico.

TransCanada's growth plan includes C$7.1 billion (US$5.4 billion) in projects from the company's acquisition of Columbia Pipeline Group, which are largely expected to enter service by 2018. Girling noted the Federal Energy Regulatory Commission (FERC) recently approved permits for two of these projects: the Leach XPress pipeline and the Rayne XPress pipeline, both of which are designed to move natural gas from the Marcellus and Utica areas to Gulf Coast and Midwest markets. Both projects are expected to be completed by the end of this year.

TransCanada filed an application last week with the Nebraska Public Service Commission (PSC) seeking approval for the Keystone XL pipeline route through the state. The crude oil pipeline would run between Hardisty, Alberta, and Steele City, Nebraska. Prior to Trump's presidential memorandum, the project had been stalled since late 2015, when then-president Obama denied it a presidential permit. For related information, see January 25, 2017, article - Trump Backs Keystone, Dakota Access Pipelines with Directives, but Many Uncertainties Remain.

"Given the passage of time since November 2015, we are also updating our commercial arrangements with our shippers. While some of the shippers may increase or decrease their volume commitments, we do expect to retain sufficient commercial support to underpin the project. We continue to believe that the U.S. Gulf Coast is the largest and most attractive market for growing volumes of Canadian heavy oil," Girling said last week.

Industrial Info is tracking nearly $35 billion in active TransCanada projects.

The company reported a net loss of C$358 (US$273 million) million for fourth-quarter 2016, an improvement over the net loss of C$2.5 billion (US$1.9 billion) that it incurred during the same period in 2015. For all of 2016, TransCanada's net income was C$124 million (US$94.7 million), compared with a net loss of C$1.2 billion (US$920 million) in 2015.

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