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Expansion for TC Energy in Midwest US to cost $800 million

TC Energy, ANR Pipelines, emission reduction

The WR Project, consisting of a series of ventures, is expected to represent a capital investment of about $800 million. Approximately four years after its inception, the project will go into service.

According to the idea, existing lines of the ANR Pipeline Company (ANR) will be expanded to serve markets in the Midwestern United States simultaneously reducing discharge by 30,000 metric tons CO2e per year - equivalent to removing more than 6,500 cars from the road each year.

TC Energy approved the project after ANR secured long-term transportation agreements to meet demand in the Midwest.

The expansion of ANR's natural gas system will provide local area distribution networks and electric producers with an additional natural gas capacity of up to 157,000 dekatherms per day in markets where significant coal-fired and vintage gas generation has recently been retired. Another part of the project will also include the replacement of existing natural gas-powered compressor units with electric motor compressors equipped with fuel switching capability.

In TC Energy's view, if the electric drive units are fully utilized, the electrification of horsepower for the project is expected to result in a 43% reduction in carbon dioxide equivalent emissions at the source. According to the CEO and the president of the company, François Poirier, such an outcome is consistent with its business strategy to optimize an existing footprint while building more sustainable infrastructure and growing organically through an existing corridor.

The project is expected to be operational by the end of 2025, thanks to long-term transportation agreements secured by ANR.

It is anticipated that the company will convert even more natural gas compressors to electric motors in order to reduce the volume of emissions generated from its transmission and storage facilities in the coming years.

To ensure compliance with these objectives, TC Energy is currently working on additional renewable energy projects. A number of initiatives include pumped hydro storage, solar and wind alternatives, carbon transportation, and sequestration, as well as large-scale hydrogen production hubs.

A similar set of upgrades was sanctioned earlier this year by TC Energy for a Lower 48 pipeline in the Northeast. By 2025, the $700 million VR Project will partially electrify the Columbia Gas Transmission system. The project stretches accordingly from New York to the Midwest and Southeast.

The energy industry is undergoing unprecedented growth: due to both an increase in energy demand and a shift toward cleaner energy sources. This has created a significant number of investment opportunities and favorable market conditions to exploit. TC Energy is just one of those who lead this trend.

As such, the company has set itself a goal of achieving net-zero emissions by 2050 with an intermediate point of a 30% emission reduction from its operations by 2030. But whether it will be achieved in time remains to be seen.

If you also share such aspirations or simply want to stay atop of industry trends, do not shy away from contacting us - we have plenty of useful data for you to enjoy.

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The green trend: TC Energy pledges to be carbon-free by 2050

TC Energy, the Canadian gas giant, recently announced its environmental, social, and governance goals, as well as emission reduction strategies. The company aims to become 100% emission-free by 2050 while promising to cut greenhouse gas emissions intensity from its operations by 30% by 2030 as an interim measure.

A good asset will not sit on the market for long. After a deal with Berkshire Hathaway fell through, Dominion Energy managed to secure another one for Questar Pipelines in a drop of a hat. And get that, it is better than the former one by more than half a billion! Although not everyone is happy with such decisions, it seems that even Carl Icahn’s complaints won't be able to sway Southwest Gas Holdings’ decision. Though we will have our eyes peeled in any case… If everything goes as planned, a $2 billion deal will be closed before the end of the year.

Shareholder’s payout target was increased by 50% after the largest U.S. independent oil producer surpassed Wall Street’s earnings estimates on growing energy prices, said Houston-based Conoco Phillips Co. on Aug. 4. Due to Western sanctions on major producer Russia throttling energy supply amid a rebound in demand from pandemic lows, oil and gas #prices have soared. Crude has been trading more than 25% higher since the start of the year and results also benefited from high natural gas prices. Meanwhile, shares were down a fraction, to $91.03, in early trading but are up about 26% year to date. Conoco Phillips stated, that the average price obtained for a barrel of oil and gas accelerated 77% from a year earlier to $88.57. The company acknowledges that it has not hedged any of its oil and gas sales to make the most of higher market prices. The capacity of 1.69 million boe/d was in line with Wall Street estimates, however, the company expected the current quarter’s output would be between 1.71 million and 1.76 million boe/d.

California oil joint venture, Aera Energy, of Exxon Mobil Corp. and ShellPlc is being sold to German asset manager IKAV, according to the agreement of Sept. 1. Shell noted that the sale of its 51.8% membership interest in Aera Energy is for a total consideration of about $2 billion in cash with additional contingent payments based on future oil prices, subject to regulatory approval. However, the total transaction value was not disclosed. Being one of California’s largest oil and gas producers, Aera Energy accounts for nearly 25% of the state’s production. The sale by Exxon Mobil and Shell ends a 25-year-long partnership in California, meanwhile, it persists a streak of divestments of mature oil and gas properties by the two supermajors. Aera Energy LLC operates about 13,000 wells in the San Joaquin Valley in California, producing oil and associated gas. In 2021, Aera took out about 95,000 boe/d. Exxon Mobil’s interests in the Aera oil-production operation in California contained a 48.2% share of Aera Energy LLC and a 50% share of Aera Energy Services Co. held by Mobil California Exploration & Producing Co. Moreover, Exxon Mobil affiliates have signed a separate agreement for the sale of an associated loading facility and pipeline system. The sale effectively ends Shell’s upstream position in California. The company reported that the divestiture is valued to result in a post-tax impairment of $300 million to $400 million, subject to adjustments.

The completion of the merger between Centennial Resource Development Inc. and Colgate Energy Partners II LLC happened on Sept. 1, sealing the debut of Permian Resources Corp., which is considered the largest pure-play E&P company in the Delaware Basin. Permian Resources’ idea was to combine two successful E&P companies, creating a better, stronger, and more strategically compelling company. Centennial and Colgate announced an agreement to merge in May, denying rumors that Colgate, a privately held independent Midland-based company, had been seeking an IPO. The merger estimated Colgate at about $3.9 billion and consists of 269.3 million shares of Centennial stock, $525 million of cash, and the assumption of approximately $1.4 billion of Colgate’s outstanding net debt. Permian Resources, being the combined company, has a deep inventory of “high-quality” drilling locations on around 180,000 net acres the companies anticipate will provide more than $1 billion of free cash flow in 2023 at current strip prices, in accordance with the company release on Sept. 1.

2022 blog posts