TC Energy Profits Reflect Huge Energy Demand

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The TCÉnergie profits reflect the huge demand for energy

TC Energy pipelines are in high demand from oil and gas producers.

Calgary-based pipeline company TC Energy posted revenue up 15% in the third quarter on record demand for natural gas, oil and electricity.

< p class="e-p">Liquefied natural gas deliveries were particularly strong for TC Energy, increasing 43% from the third quarter of 2021.

The energy crisis in Europe has accelerated the attraction for this fuel, and the pipeline company expects this enthusiasm to continue. A $400 million project, Gillis Access, has been approved to increase LNG transportation to terminals in Louisiana, where 60% of US natural gas exports could go by 2030.

During the presentation of third quarter results on Wednesday, Vice President of Natural Gas Pipelines Stanley G. Chapman said his company is in preliminary discussions to further expand transportation capacity to the Gulf of Mexico. He added that difficulties in obtaining permits make it unlikely to set up an LNG terminal in eastern Canada.

The lure of liquefied natural gas is attracting an uptick in LNG export infrastructure like this one located in Cameron, Louisiana.

The company is also seeing very strong demand from natural gas producers in the Montney region, a basin that straddles British Columbia and Alberta. Since June 2020, the price of a gigajoule of natural gas has more than doubled, approaching US$6.

TC Energy pipelines also performed well. Volumes transported through the Keystone pipeline reached a record high in September with 640,000 barrels of oil transported per day.

Again, the company's good results are linked to the good financial health of producers supported by high world prices. Alberta produced a record 3.9 million barrels of oil per day in September, the highest production level on record.

Even TC Energy's assets in generation generated revenues up 41% in 2022 compared to the first nine months of 2021. TC Energy also reported that more than $5 billion in assets will be sold during 2023 to fund the growth of the company.

Executives however refused to reveal what types of assets will be sold and which entities the company wishes to acquire.

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