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TC energy (TSX: TRP) (NYSE: TRP) owns a natural gas pipeline network that transports natural gas from utility basins to local distribution companies, power generation plants, industrial plants, interconnectors, liquefied natural gas (LNG) export terminals, and other companies in Canada, the United States ) and Mexico.

The company’s pipeline network serves most major supply areas and carries over 25% of continental daily natural gas needs through owned and partially owned natural gas pipelines. In addition to TC Energy’s natural gas pipelines, the company has regulated natural gas storage facilities in the United States with a total working gas capacity of 535 billion cubic feet (Bcf), making it one of the largest providers of natural gas storage and related services to key markets in North America.

Various segments

In addition, TC Energy’s natural gas pipeline business is divided into three operating segments that reflect the company’s geographic diversity in Canada, the United States and Mexico. The company is focused on optimizing the value of TC Energy’s existing natural gas pipeline systems while responding to the changing natural gas flow patterns in North America. TC Energy is also pursuing new opportunities in the pipeline to add additional value to the company’s business.

Development of new projects

In addition, TC Energy is focused on intra-corridor expansion and expansion of the existing large North American natural gas pipeline presence and connections to new and growing markets for industrial and electrical power generation. The company is also focusing on expanding TC Energy’s systems at key locations and developing new projects to connect LNG export terminals.

The company also plans to connect to growing Canadian and US shale gas and other supplies. Each of these areas play a critical role in meeting the transportation needs for the supply and demand of natural gas in North America. The North American natural gas pipeline network was developed to connect various supply regions with the domestic markets and to increasingly meet the demand for LNG export facilities. The use and growth of this infrastructure are influenced by changes in the location and relative cost of natural gas supplies, as well as changes in the state of the markets and the level of demand.

Expectation of further growth

TC Energy has significant pipeline footprints serving two of North America’s most productive utility regions, including the Western Canadian Sedimentary Basin (WCSB) and the Appalachian Basin. The company’s pipelines also draw natural gas from other major basins, including the Gulf of Mexico. TC Energy expects that continued growth in North American natural gas production will meet demand in growing domestic markets, particularly in the power generation and industrial sectors, which benefit from relatively low natural gas prices.

In addition, North American supply is expected to benefit from increased demand for natural gas in Mexico and access to international markets through LNG exports. TC Energy expects North America’s natural gas demand, including LNG exports, to be about 128 billion cubic feet per day through 2025, an increase of about 17 billion cubic feet per day from 2020 levels. This will position it very well.


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The Motley Fool has no position in any of the stocks mentioned. Fool Nikhil Kumar has no position in any of the stocks mentioned.



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