Canada-US Tariffs 2025, LNG, Oil Pipelines, TC Energy, TC Energy Corp.

TC Energy CEO throws cold water on pipeline revival talk, but 'bullish' on LNG

Trump's tariff threats have reignited discussion of reviving major export pipeline proposals

Get the latest from Meghan Potkins straight to your inbox

TC Energy Corp. chief executive François Poirier says the pipeline giant is currently focused on opportunities in the United States, but fended off inquiries about the company’s willingness to entertain another major Canadian pipeline project.

“Right now, we see the highest risk-adjusted returns being in the United States,” Poirier said during a quarterly earnings conference call on Friday. “The vast majority of our discretionary capital is going, and we expect that it will continue to go, into the United States.”

Financial Post
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account.
  • Share your thoughts and join the conversation in the comments.
  • Enjoy additional articles per month.
  • Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account
  • Share your thoughts and join the conversation in the comments
  • Enjoy additional articles per month
  • Get email updates from your favourite authors

Sign In or Create an Account

or
View more offers
If you are a Home delivery print subscriber, online access is included in your subscription. Activate your Online Access Now

U.S. President Donald Trump‘s threat to impose a 10 per cent tariff on Canadian and Mexican energy has reignited public discussion of Canada reviving major export pipeline proposals, including TC’s Energy East project.

But TC Energy said circumstances have changed since the project was first proposed.

The company’s Canadian Mainline, a formerly underused natural gas pipeline the company had proposed to convert to transport crude oil as part of the original vision for Energy East, is now fully contracted. One segment of the Canadian Mainline, Line 2, remains unavailable for service, TC Energy said, though it could be restored depending on how market conditions develop.

The company also divested its oil pipeline business in a spinoff called South Bow Corp. last October.

“With respect to what I would call an ‘energy corridor’ from coast to coast to coast — lots of inquiries on the liquid side — I would refer those to our friends and former colleagues at South Bow,” Poirier said.

He was more optimistic about the prospect of the country’s first liquefied natural gas export terminal, LNG Canada, being greenlit for expansion this year in a move that would require TC Energy to deploy additional compressor stations to boost capacity on its Coastal GasLink pipeline.

Top Stories
Top Stories

Get the latest headlines, breaking news and columns.

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

“There is absolutely demand for more LNG export and market opportunity for us to prosecute,” Poirier said. “We’re very bullish about the prospects for CGL phase two happening.”

The Calgary-based company beat analyst estimates by posting a profit of $1.1 billion, or $1.05 per share, in the last three months of 2024.

Though it reported lower year-over-year earnings from its Canadian and U.S. natural gas pipelines, these were offset by gains in its power business and its natural gas pipeline business in Mexico, where a weakening of the peso contributed to year-over-year gains since TC Energy’s revenues were paid in U.S. dollars.

TC Energy is also celebrating the mechanical completion of its Southeast Gateway pipeline project in Mexico. The company said the 715-kilometre offshore natural gas pipeline project was 13 per cent under budget, and the pipeline is expected to be in service May 1.

The company also faced questions about how U.S. tariffs will impact its operations, which span assets in pipelines, power generation and storage across North America.

Midstream firms such as TC Energy have been trying to reassure investors that their exposure to tariffs may be negligible, at least in the short term, since the majority of their cash flows come from regulated cost-of-service pipeline tolls and take-or-pay contracts that guarantee revenue even if shippers elect not to ship.

“We recognize that prolonged tariffs could impact capital allocation decisions; however, our diverse portfolio across three jurisdictions enables us to continue allocating capital to markets with sustained energy demand,” Poirier said, adding that the majority of TC’s discretionary capital spending would go to projects transporting U.S. production to U.S. demand centres so “there would be no tariff impacts.”

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters financialpost.com.