TC Energy Approves Nearly C$3 Billion in Gas Projects, Adds 2.7 Bcf/d
Key Facts
On November 5, TC Energy announced approval of new growth projects worth nearly C$3 billion, including expansions to North American gas networks, and said approved projects since the start of 2026 totaled about C$6 billion. The main U.S. projects will add 2.7 billion cubic feet per day of transportation capacity, while Phase 2 of Coastal GasLink will increase Canadian capacity by about 2 billion cubic feet per day. The company estimated the cost of the Crossroads expansion at about US$1.8 billion and the American Midwest project at about US$0.4 billion, while Coastal GasLink is expected to cost C$4.9 billion. Long-term take-or-pay contracts support the Crossroads expansion, according to the company statement. The investments aim to expand transportation capacity on existing networks, with expected in-service dates ranging from 2029 to the early 2030s.
The Crossroads expansion will add 1.4 billion cubic feet per day of capacity and is targeted to enter service in 2030. It is linked to the American Midwest project to expand the Northern Border system, which will add 1 billion cubic feet per day, with an expected in-service date in the same year. The project’s estimated total cost is US$0.4 billion, including an estimated US$0.1 billion share for TC Energy from equity contributions. The company also approved the ANR Enhancement project, which will add about 0.3 billion cubic feet per day of firm transportation services to support the shift from coal to gas. Its estimated cost is US$0.1 billion, and it is expected to enter service in 2029.
In Canada, Phase 2 of Coastal GasLink will increase firm transportation capacity by about 2 billion cubic feet per day to about 4.5 billion cubic feet per day. The work includes adding five compressor stations, without building an additional pipeline, according to the company. Construction is expected to begin in early 2027, with the project entering service in the early 2030s. LNG Canada will lead execution and construction, while TC Energy’s share of committed equity will be about C$250 million. The plan shows that expansion of the existing network will add new transportation capacity as part of a project the company estimates will cost C$4.9 billion.
The approvals come as the company transports greater volumes of gas. Average deliveries on its Canadian natural gas pipelines reached 24.3 billion cubic feet per day in the third quarter of 2026, up 6% from the same period in 2025. Average daily flows on its U.S. pipelines were 27 billion cubic feet, up 3% year over year. In the same period, comparable earnings reached C$1 billion, or C$0.94 per share, versus C$0.8 billion and C$0.77 per share in the third quarter of 2025. Comparable earnings before interest, taxes, depreciation and amortization rose to C$3 billion from C$2.7 billion. The results reflect growth in the transportation business as the company continues to add projects to its asset base.
TC Energy raised its 2026 comparable earnings before interest, taxes, depreciation and amortization outlook to a range of C$11.8–12.0 billion. It said performance in the first nine months of the year, regulatory and commercial settlements, and projects entering service ahead of schedule and on budget supported the higher outlook. The company expects debt to remain below its long-term target of 4.75 times this measure. It also expects the measure to reach C$12.3–12.5 billion in 2027 and to grow at a compound annual rate of 5% to 7% during 2026–2031. The company said it has about C$6 billion in projects awaiting approval and more than C$40 billion in additional opportunities under development.
The company expects to place about C$3.4 billion of capital into service during 2026, followed by about C$4.5–5.0 billion in 2027. It said projects that entered service from 2025 through today in 2026 were completed overall more than 10% under budget. On the next round of expansions, Chief Executive François Poirier said the company would announce in December a “significant” expansion plan for Alberta’s NGTL gas system, without specifying the proposed capacity. In the market, TC Energy shares closed at C$61.92 on November 6, down from C$62.58 on November 5. The closing data available here do not include the trading range during the November 6 session.