The Canadian infrastructure group TC Energy has released plans to separate into two independent, publicly listed companies through the spinoff of its Liquids Pipelines business. The decision follows a two-year strategic review and is expected to be completed in the second half of 2024.
Once the spinoff is completed, TC Energy will focus on natural gas infrastructure and power and energy solutions. It will operates one of North America's largest natural gas energy infrastructure networks, spanning 93,700 km (58,200 miles), connecting low-cost basins to key demand and export markets. TC Energy will deliver about 30% of the total natural gas supply for LNG export from the United States and will provide Canada's first direct connection to LNG markets through the Coastal GasLink project. The company's business, which includes 4.6 GW of power capacity, is 96% rate-regulated and/or long-term contracted.
The new Liquids Pipelines Company would manage 4,900 km (3,045 miles) of crude oil pipeline infrastructure, supplying over 14 mb/d of crude oil to refineries and export facilities. The company plays a significant role in transporting 16% of crude exported from the Western Canadian Sedimentary Basin (WCSB). Its footprint includes crucial assets such as the Keystone system and Marketlink, connecting Alberta and US crude oil supplies to refining markets in Illinois, Oklahoma, and the US Gulf Coast.