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Released May 08, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--TC Energy Corporation (NYSE:TRP) (Calgary, Alberta) recently reported a boost in natural gas deliveries in the first quarter, as the company moves ahead with its growth projects. Industrial Info is tracking US$11 billion worth of active and planned projects from TC Energy, more than US$6 billion of which is nearing or under construction.
"Natural gas demand growth is continuing, empowering the U.S. as electricity demand grows," said Francois Poirier, chief executive officer of TC Energy, in a first-quarter earnings conference call. "2023 was a record year for power burn across the U.S., and that strength is continuing into 2024. Mirroring that, our assets continue to support the record demand, and we set a first quarter record for deliveries to power generators of 2.9 Bcf per day [billion cubic feet per day] [Bcf/d], up 11% versus the first quarter of 2023. New growth drivers like data centers will help continue that positive growth momentum."
For more information on how a surge in U.S. data center construction is affecting electricity providers, see April 16, 2024, article - Data Center Construction Propels Electric Load Growth and Utility Capex.
Meanwhile, Poirier said deliveries on TC Energy's NGTL System, which connects natural gas production in western Canada to domestic and export markets, averaged 15.3 Bcf/d in the first quarter, with a new daily record high of 17.4 Bcf in January.
More than one-third of TC Energy's project activity is attributed to its Coastal GasLink (CGL) natural gas pipeline, a 422-mile system that will carry natural gas from the Montney Shale to LNG Canada's complex in Kitimat, British Columbia. LNG Canada will process the gas into liquefied natural gas (LNG) exports.
In a first-quarter earnings press release, Poirier said post-construction reclamation activities are underway "and are expected to continue through 2024. Commercial in-service of CGL will occur after completion of plant commissioning activities at the LNG Canada facility and upon receiving notice from LNG Canada."
In December, LNG Canada said it expected to begin startup activities for the first phase in 2024, but added it expects the startup program will take more than a year to complete.
The Coastal GasLink project consists of a 422-mile, US$4.28 billion mainline designed to carry up to 2.1 billion cubic feet per day (later expandable to 5 billion cubic feet) of gas from a development near Dawson Creek to the coast. It will be supported by the construction of four new compressor stations. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed reports on the mainline and the compressor stations near Tumbler Ridge, Houston, Fraser Lake and Dawson Creek. Subscribers to the Production Project Database can click here for a report on the first phase of the LNG Canada project.
In the earnings conference call, TC Energy Chief Financial Officer Joel Hunter said he expects full-year net capital spending of approximately C$8 billion to C$8.5 billion (US$5.8 billion to US$6.2 billion); in the related press release, Poirier said TC Energy aims to limit net capital spending to between C$6 billion (US$4.3 billion) and C$7 billion (US$5.1 billion) "with a bias to the lower end, in 2025 and beyond."
TC Energy noted its U.S. natural gas portfolio and specific assets, including Columbia Gas, Columbia Gulf and Great Lakes Gas Transmission, reached all-time delivery records in the first quarter. Columbia Gulf is at work on building an 8.14-mile, US$155 million segment of its East Lateral Xpress Pipeline from Jefferson Parish to Plaquemines Parish, Louisiana, which will carry up to 725 million standard cubic feet per day out of Columbia Gulf's existing EL-300 pipeline. The project is expected to wrap up in the fourth quarter of 2024. The Columbia Gulf system gathers gas in the Gulf of Mexico and brings it to the Columbia Gas transmission system, which extends from the Southeast and Midwest to New York state.
Meanwhile, Columbia Gas expects to begin construction next month on a natural gas pipeline replacement project that entails replacing approximately 48 miles of outdated 12-inch-diameter pipeline in Virginia in order to transport an additional 105 million standard cubic feet per day of natural gas in three of the state's counties. Subscribers can read detailed reports on the Columbia Gulf and Columbia Gas projects.
Subscribers to Industrial Info's GMI Database can click here to view reports for the projects discussed in this article, and click here for the related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from TC Energy.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
"Natural gas demand growth is continuing, empowering the U.S. as electricity demand grows," said Francois Poirier, chief executive officer of TC Energy, in a first-quarter earnings conference call. "2023 was a record year for power burn across the U.S., and that strength is continuing into 2024. Mirroring that, our assets continue to support the record demand, and we set a first quarter record for deliveries to power generators of 2.9 Bcf per day [billion cubic feet per day] [Bcf/d], up 11% versus the first quarter of 2023. New growth drivers like data centers will help continue that positive growth momentum."
For more information on how a surge in U.S. data center construction is affecting electricity providers, see April 16, 2024, article - Data Center Construction Propels Electric Load Growth and Utility Capex.
Meanwhile, Poirier said deliveries on TC Energy's NGTL System, which connects natural gas production in western Canada to domestic and export markets, averaged 15.3 Bcf/d in the first quarter, with a new daily record high of 17.4 Bcf in January.
More than one-third of TC Energy's project activity is attributed to its Coastal GasLink (CGL) natural gas pipeline, a 422-mile system that will carry natural gas from the Montney Shale to LNG Canada's complex in Kitimat, British Columbia. LNG Canada will process the gas into liquefied natural gas (LNG) exports.
In a first-quarter earnings press release, Poirier said post-construction reclamation activities are underway "and are expected to continue through 2024. Commercial in-service of CGL will occur after completion of plant commissioning activities at the LNG Canada facility and upon receiving notice from LNG Canada."
In December, LNG Canada said it expected to begin startup activities for the first phase in 2024, but added it expects the startup program will take more than a year to complete.
The Coastal GasLink project consists of a 422-mile, US$4.28 billion mainline designed to carry up to 2.1 billion cubic feet per day (later expandable to 5 billion cubic feet) of gas from a development near Dawson Creek to the coast. It will be supported by the construction of four new compressor stations. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed reports on the mainline and the compressor stations near Tumbler Ridge, Houston, Fraser Lake and Dawson Creek. Subscribers to the Production Project Database can click here for a report on the first phase of the LNG Canada project.
In the earnings conference call, TC Energy Chief Financial Officer Joel Hunter said he expects full-year net capital spending of approximately C$8 billion to C$8.5 billion (US$5.8 billion to US$6.2 billion); in the related press release, Poirier said TC Energy aims to limit net capital spending to between C$6 billion (US$4.3 billion) and C$7 billion (US$5.1 billion) "with a bias to the lower end, in 2025 and beyond."
TC Energy noted its U.S. natural gas portfolio and specific assets, including Columbia Gas, Columbia Gulf and Great Lakes Gas Transmission, reached all-time delivery records in the first quarter. Columbia Gulf is at work on building an 8.14-mile, US$155 million segment of its East Lateral Xpress Pipeline from Jefferson Parish to Plaquemines Parish, Louisiana, which will carry up to 725 million standard cubic feet per day out of Columbia Gulf's existing EL-300 pipeline. The project is expected to wrap up in the fourth quarter of 2024. The Columbia Gulf system gathers gas in the Gulf of Mexico and brings it to the Columbia Gas transmission system, which extends from the Southeast and Midwest to New York state.
Meanwhile, Columbia Gas expects to begin construction next month on a natural gas pipeline replacement project that entails replacing approximately 48 miles of outdated 12-inch-diameter pipeline in Virginia in order to transport an additional 105 million standard cubic feet per day of natural gas in three of the state's counties. Subscribers can read detailed reports on the Columbia Gulf and Columbia Gas projects.
Subscribers to Industrial Info's GMI Database can click here to view reports for the projects discussed in this article, and click here for the related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from TC Energy.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
