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By Reuters
(Reuters) – Canada’s TC Energy approved a $1.5 billion Columbia Gas expansion project on Friday after its first-quarter profit narrowly beat analysts’ expectations, driven by strong performance in its North American operations.
The Appalachia Supply Project – expected to start operations in 2030 – is backed by a 20‑year contract with a financially strong utility, the company said, and will be capable of moving up to 0.8 billion cubic feet of natural gas per day to support new gas-fired power plants.
Major pipeline operators like TC Energy are doubling down in anticipation of surging natural gas demand as liquefied natural gas export facilities expand and power-hungry AI systems, cryptocurrency miners and data centers ramp up electricity use.
The company’s adjusted core profit from the U.S. natural gas pipelines, its largest segment, rose about 10% to nearly C$1.50 billion, while earnings from its Canadian natural gas pipelines increased about 3% to C$919 million in the quarter ended March 31.
Quarterly adjusted core profit from its Mexico natural gas pipelines business rose 85.4% to C$432 million.
Canadian natural gas pipeline deliveries averaged 29.7 bcfpd during the quarter, up 3% from a year earlier. U.S. pipeline flows rose 5% to 32.6 bcfpd, while deliveries to LNG facilities jumped 12% to 3.9 bcfpd.
The pipeline operator said in March its Coastal GasLink pipeline project had signed agreements with LNG Canada to advance the project’s second phase.
On an adjusted basis, TC Energy earned 99 Canadian cents ($0.7294) per share for the three months ended March 31, compared with analysts’ average estimate of 98 Canadian cents, according to data compiled by LSEG.
($1 = 1.3572 Canadian dollars)
Reporting by Sumit Saha in Bengaluru; Editing by Pooja Desai
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