theglobeandmail.com
TC Energy's Mexico Pipeline Project Under Budget
TC Energy's Southeast Gateway pipeline project in Mexico is on track to be completed ahead of schedule and under budget, contributing to the company's efforts to reduce debt.
English
Canada
Energy SecurityFinanceEnergyDebtPipelineProject
Tc Energy Corp.ShellLng CanadaSouth Bow Corp.Lseg Data & Analytics
Francois Poirier
- What actions has TC Energy taken to reduce its debt load?
- TC Energy has reduced its long-term debt by C$7.6 billion, exceeding its year-end net debt target, following asset sales and the spinoff of its oil pipelines business.
- What is TC Energy's outlook for future natural gas demand in North America?
- The company forecasts a surge in North American natural gas demand by 2035, driven by factors such as coal plant retirements and increased electricity consumption from AI and data centers.
- How does the Southeast Gateway project's success impact TC Energy's financial situation?
- The company's lowered cost outlook for Southeast Gateway contributes to its progress in reducing its heavy debt load, which has been a concern for investors and credit rating agencies.
- What factors contributed to the lower than expected cost of the Southeast Gateway project?
- The reduced cost is attributed to efficient project execution, procurement of materials and equipment at lower than expected prices, and more efficient construction and civil works activities.
- What is the expected completion date and cost of TC Energy's Southeast Gateway pipeline project?
- TC Energy's Southeast Gateway pipeline project in Mexico is expected to be completed by mid-2025, with a total cost of US$3.9 billion, which is 11% below the initial budget.