TC Energy Corp. has completed the northern portion of its Southeast Gateway natural gas offshore pipeline project that would supply underserved areas along the Yucatán Peninsula.
Management for the Calgary-based pipeline giant provided updates on major projects during a first-quarter earnings call Friday.
In Mexico, TC has installed more than 70% of the offshore pipe for the Southeast Gateway pipeline project. The 1.3 Bcf/d, 444-mile long pipeline (with 416 miles offshore) remains on schedule to come online by mid-2025 and within its $4.5 billion budget, CEO François Poirier said.
All three landfall sites for the Southeast Gateway have been completed. The offshore vessel is in port for maintenance but will soon go back out to complete about 117 miles of the southern portion of the deepwater pipeline, COO Stanley Chapman said.
In addition, as part of a negotiated partnership, Mexico’s state power company Comisión Federal de Electricidad (CFE) has received approvals to purchase a 15% investment in TC Energy’s Mexico-based subsidiary TGNH. “We are in the final throes of negotiating documentation” with payment expected as soon as next week, Poirier said.
TC, which reports in Canadian dollars (C$1.00/US73 cents), said it delivered record amounts of natural gas on several of its pipeline systems in the first quarter.
In Mexico, natural gas flows reached almost 3 Bcf/d, up 14% from a year earlier, driven by gains on the Sur de Texas pipeline.
The Nova Gas Transmission Ltd. (NGTL) pipeline system in Western Canada averaged 15.3 Bcf/d of gas deliveries, up 0.7 Bcf/d from a year earlier. The NGTL system achieved a daily record of 17.3 Bcf/d deliveries in January.
TC’s U.S. natural gas pipelines averaged flows of 30 Bcf/d in the first quarter, up more than 5% from a year earlier. U.S. natural gas deliveries to power generators to a record average of 2.9 Bcf/d, up about 11% from a year earlier.
“Natural gas demand growth is continuing in powering the United States as electricity demand grows. 2023 was a record year for power burn across the United States and that strength is continuing into 2024,” Poirier said.
TC reported net income of $1.2 billion ($1.16/share) in 1Q2024, compared with a net profit of $1.3 billion ($1.29) in the year-ago period. Revenues totaled $4.2 billion in the quarter, versus $3.9 billion a year earlier.
