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    Canadian pipeline company TC Energy sees higher Q1 earnings


Higher flows on Canadian, US and Mexican gas pipeline systems contributed to the gains. [Image credit: TC Energy]

by: Dale Lunan

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Natural Gas & LNG News, Americas, Corporate, Financials, Infrastructure, Pipelines, News By Country, Canada

Canadian pipeline company TC Energy sees higher Q1 earnings

Canadian pipeline and energy infrastructure company TC Energy said May 3 it had higher comparable earnings and EBITDA in Q1 2024 compared to the same period last year, reflecting increased flows in both its natural gas and liquids pipelines.

“During the first three months of 2024, we delivered 11% year-over-year growth in comparable EBITDA and approximately 4% growth in segmented earnings, which was underpinned by the continued reliability, availability, and exceptional performance of our assets,” CEO Francois Poirier said.

Comparable earnings in Q1 increased to C$1.3bn (US$950mn) this year from C$1.2bn in Q1 2023, while comparable EBITDA rose to C$3.1bn from C$2.8bn. Segmented earnings were C$2.26bn compared to C$2.17bn, reflecting higher earnings from Canadian Natural Gas Pipelines and Liquids Pipelines and slightly reduced earnings from US Natural Gas Pipelines and Mexico Natural Gas Pipelines.

In Canada, deliveries on the NGTL System, which carries most gas produced in western Canada, averaged 15.3bn ft3/day in Q1 this year, up from 14.6bn ft3/day in the same period last year. The system also set a new daily delivery record of 17.3bn ft3/day in the first quarter.

TC Energy achieved mechanical completion of its Coastal GasLink (CGL) pipeline in 2023, ahead of schedule, and will continue post-construction reclamation activities through most of this year. Commercial operations of the 2.1bn ft3/day CGL will occur after completion of plant commissioning activities at the Shell-led LNG Canada liquefaction terminal on Canada’s west coast and upon receiving notice from LNG Canada.

US Natural Gas Pipelines achieved daily average flows of 30bn ft3/day in the first quarter, up 5% from a year ago, while deliveries to US power generators set a record quarter average of 2.9bn ft3/day, up 11% year-over-year.

Throughput on TC Energy’s Mexico gas pipelines reached nearly 3bn ft3/day, an increase of 13% year-over-year.