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Released November 11, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--TransCanada Corporation (NSYE:TRP) (Calgary, Alberta) expressed optimism regarding its beleaguered Keystone XL crude oil pipeline project, following the election of Donald Trump to the White House. The company on Wednesday said it remained "fully committed" to the project, which is planned to carry crude oil from Canada's oil sands into the U.S. "We are evaluating ways to engage the new administration on the benefits, the jobs and the tax revenues this project brings to the table," said TransCanada spokesman Mark Cooper in an email to CBC News.
On July 1, the company completed the acquisition of Columbia Pipeline Group (Houston, Texas) for $13 billion. Earlier this month, TransCanada announced its intention of acquiring Columbia's limited partnership, Columbia Pipeline Partners LP (NYSE:CPPL) (Houston), bringing TransCanada's holding of Columbia's assets to 100%.
In a recent presentation regarding the company's strategic growth initiatives, TransCanada Chief Executive Officer Russ Girling discussed decisions regarding the funding of its Columbia purchase and related capital projects. Girling said the company had decided to maintain its interest in Mexican pipeline assets, rather than selling a minority stake to help fund the Columbia purchase. "This portfolio includes US$3.8 billion of projects in construction or development that are expected to enter service by the end of 2018. Once completed, annual EBITDA [earnings before interest, taxes, depreciation and amortization] from our Mexico business is expected to rise from US$181 million in 2015 to approximately $575 million U.S.," said Girling.
Among TransCanada's Mexico projects is the grassroot natural gas pipeline from Tuxpan, Veracruz, to Tula, Hidalgo. Construction of the 350-kilometer pipeline kicked off this quarter and is expected to be completed by the end of next year. The pipeline has an estimated total investment value of $500 million. All of TransCanada's Mexico projects are underpinned by 25-year purchase agreements with Mexico's state-run Comision Federal de Electridad (CFE) (Mexico City).
The company is also inheriting projects as part of its purchase of Columbia. "Since July, we have made significant progress integrating Columbia's operations with our U.S. natural gas pipeline business, and we are well on track to realize the targeted $250 million U.S. of annualized benefits," said Girling. "We also continue to advance approximately US$7.7 billion of Columbia growth projects, which are largely expected to be in service by 2018, with certain modernization initiatives to be completed by 2020."
Don Marchand, chief financial officer for TransCanada, said the acquisition of Columbia brought the company's growth portfolio of near-term projects to more than $25 billion, including about $21 billion of natural gas pipeline projects, about $2 billion of liquids pipelines and $2 billion of power projects, which includes the company's $1.2 billion construction of the natural gas-fired, combined-cycle Napanee Generating Center in Ontario. Construction of the facility began in the first quarter of 2015 and is expected to be completed in late 2018. The facility will have a generating capacity of 900 megawatts.
In addition to Keystone XL, which may see a revival thanks to the new U.S. administration, one of TransCanada largest projects is the Energy East crude oil pipeline project in Canada. The 4,600-kilometer pipeline would bring 1.1 million barrels per day of crude oil from Alberta and Saskatchewan to eastern Canada for refining and export. In addition to construction of new pipeline, an existing natural gas pipeline would also be repurposed for the project. The project is currently up for review by Canada's National Energy Board, which is not expected to reach a decision on the project until 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
On July 1, the company completed the acquisition of Columbia Pipeline Group (Houston, Texas) for $13 billion. Earlier this month, TransCanada announced its intention of acquiring Columbia's limited partnership, Columbia Pipeline Partners LP (NYSE:CPPL) (Houston), bringing TransCanada's holding of Columbia's assets to 100%.
In a recent presentation regarding the company's strategic growth initiatives, TransCanada Chief Executive Officer Russ Girling discussed decisions regarding the funding of its Columbia purchase and related capital projects. Girling said the company had decided to maintain its interest in Mexican pipeline assets, rather than selling a minority stake to help fund the Columbia purchase. "This portfolio includes US$3.8 billion of projects in construction or development that are expected to enter service by the end of 2018. Once completed, annual EBITDA [earnings before interest, taxes, depreciation and amortization] from our Mexico business is expected to rise from US$181 million in 2015 to approximately $575 million U.S.," said Girling.
Among TransCanada's Mexico projects is the grassroot natural gas pipeline from Tuxpan, Veracruz, to Tula, Hidalgo. Construction of the 350-kilometer pipeline kicked off this quarter and is expected to be completed by the end of next year. The pipeline has an estimated total investment value of $500 million. All of TransCanada's Mexico projects are underpinned by 25-year purchase agreements with Mexico's state-run Comision Federal de Electridad (CFE) (Mexico City).
The company is also inheriting projects as part of its purchase of Columbia. "Since July, we have made significant progress integrating Columbia's operations with our U.S. natural gas pipeline business, and we are well on track to realize the targeted $250 million U.S. of annualized benefits," said Girling. "We also continue to advance approximately US$7.7 billion of Columbia growth projects, which are largely expected to be in service by 2018, with certain modernization initiatives to be completed by 2020."
Don Marchand, chief financial officer for TransCanada, said the acquisition of Columbia brought the company's growth portfolio of near-term projects to more than $25 billion, including about $21 billion of natural gas pipeline projects, about $2 billion of liquids pipelines and $2 billion of power projects, which includes the company's $1.2 billion construction of the natural gas-fired, combined-cycle Napanee Generating Center in Ontario. Construction of the facility began in the first quarter of 2015 and is expected to be completed in late 2018. The facility will have a generating capacity of 900 megawatts.
In addition to Keystone XL, which may see a revival thanks to the new U.S. administration, one of TransCanada largest projects is the Energy East crude oil pipeline project in Canada. The 4,600-kilometer pipeline would bring 1.1 million barrels per day of crude oil from Alberta and Saskatchewan to eastern Canada for refining and export. In addition to construction of new pipeline, an existing natural gas pipeline would also be repurposed for the project. The project is currently up for review by Canada's National Energy Board, which is not expected to reach a decision on the project until 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
