TC Energy Corp. had a net loss for first-quarter 2021 of $1.1 billion compared with net income of $1.1 billion for the same period in 2020. Excluding a $2.2-billion after-tax asset impairment charge related to formal suspension of the Keystone XL crude oil pipeline project and certain other specific items, comparable earnings for first-quarter 2021 were unchanged at $1.1 billion. The Biden Administration’s revocation of the US Presidential Permit for Keystone XL prompted TC Energy and its partner, the Government of Alberta, to formally suspend the project (OGJ Online, Jan. 21, 2020).
On Mar. 8, 2021, TC Energy entered a joint venture with Motiva Enterprises LLC to build the Port Neches Link pipeline system, connecting the Keystone pipeline system to Motiva’s Port Neches, Tex., terminal, which supplies 630,000 b/d to its Port Arthur refinery. The common carrier pipeline system will include tie-ins to additional liquids terminals and other downstream infrastructure and is expected to be in service second-half 2022. Port Neches Link will cost $152 million.
In TC Energy’s natural gas pipelines segment, the company reiterated that scope changes, permit delays, and the effects of COVID-19 have combined to increase Coastal GasLink pipeline project costs and delay completion compared with original projections. TC Energy had been planning to complete the pipeline in 2023 and is working with LNG Canada on establishing a revised project plan and budget. The 420-mile, 2.1-bcfd pipeline will supply gas to the 14-million tonne/year plant, being developed in Kitimat, BC, by a joint venture led by Shell Canada Energy.
A December 2020 order by the British Columbia Provincial Health Officer restricting the number of workers on site for industrial projects was lifted Apr. 13, 2021, allowing TC Energy to finalize Coastal GasLink remobilization plans for the summer construction program.
Phase I of Grand Chenier XPress, an expansion project on the ANR pipeline system delivering gas to US Gulf Coast LNG plants, went into service in April 2021. Phase II is expected to be placed in service early 2022. Grand Cheniere includes a new compressor station (Mermentau) in Jefferson Davis Parish, La. and modifications to the existing Grand Chenier and Eunice compressor stations in Cameron and Acadia parishes.
Construction on TC Energy’s Villa de Reyes pipeline in Mexico is ongoing but has been delayed due to COVID-19 contingency measures which have impeded obtainment of work authorizations due to administrative closures. The company expects to complete construction in 2021.