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    TC Energy sees Q3 growth, Coastal GasLink mechanically complete


CGL expected to be ready to deliver commissioning gas to LNG Canada by year-end. [Image credit: Coastal GasLink]

by: Dale Lunan

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TC Energy sees Q3 growth, Coastal GasLink mechanically complete

North American pipeline operator TC Energy said November 8 it delivered EBITDA growth of about 7% in Q3 2023 and achieved mechanical completion on the 2.1bn ft3/day Coastal GasLink (CGL) pipeline, which will deliver feed gas to the LNG Canada liquefaction terminal nearing completion on Canada’s west coast.

“During the third quarter, we made monumental progress on Coastal GasLink and have achieved mechanical completion ahead of our year-end target,” CEO Francois Poirier said. “The project remains on track with the approximately C$14.5bn (US$10.5bn) cost estimate.”

CGL reached 100% pipe installation in October with the final weld at the base of Cable Crane Hill east of Kitimat. Over the balance of 2023, TC Energy said, pipeline commissioning activities will continue and CGL will be ready to deliver commissioning gas to LNG Canada by the end of this year.

Comparable EBITDA increased to C$2.6bn in Q3 2023 from C$2.46bn in Q3 2022, while segmented earnings declined to C$644mn from C$1.8bn, largely reflecting an after-tax impairment charge of C$1.2bn related to TC Energy’s equity investment in CGL.

Operationally, third quarter results were underpinned by strong system utilisation, TC Energy said, with receipts on its NGTL system in western Canada averaging 14bn ft3/day, up from 13.5bn ft3/day in Q3 2022, with a single day delivery of a record 14.6bn ft3/day on August 6, 2023.

US gas pipeline deliveries to LNG facilities increased 1.4% from Q3 2022, to 3.1bn ft3/day, while deliveries to US power generators reached a record 5.2bn ft3/day on July 28, 2023 and deliveries on the Gas Transmission Northwest system, which serves markets in California and the Pacific Northwest, reached a single day record of 2.96bn ft3/day on July 25.

In Mexico, the Southeast Gateway Pipeline project continued to progress to its US$4.5bn cost estimate and schedule, with land rights and rights of way negotiations now closed and all critical permits received for onshore construction.

“We are advancing construction of onshore facilities and landfalls,” TC Energy said. “Offshore engineering is complete and offshore installation expected to commence prior to the end of 2023.”

Southeast Gateway consists of a marine pipeline that will transport 1.3bn ft3/day of natural gas from Tuxpan, Veracruz, to delivery points in Coatzacoalcos, Veracruz, and Paraiso, Tabasco. It is expected to be in-service by mid-2025.