TC Energy earns $4.5 billion in 2020

Feb. 18, 2021
TC Energy Corp. had fourth-quarter 2020 net income attributable to common shares $1.1 billion (US$870 million), unchanged from the same period in 2019.

TC Energy Corp. had fourth-quarter 2020 net income attributable to common shares of $1.1 billion (US$870 million), unchanged from the same period in 2019. Full-year 2020 net income was $4.5 billion, compared with $4.0 billion for 2019.

The company said it was “disappointed” with the Jan. 20, 2021, revocation of the presidential permit for its Keystone XL crude pipeline but would be advancing $20 billion of secured capital projects. TC Energy expects to record a substantive, predominantly non-cash, after-tax charge to its first-quarter 2021 earnings as a result of the permitting loss, which it will exclude from comparable earnings.

In 2020, TC Energy’s NGTL Canadian natural gas pipeline system placed about $3.4 billion of capacity projects in service. On Feb.19, 2020, the Canada Energy Regulator issued a report recommending approval of the 1.45-bcfd 2021 Nova Gas Transmission Ltd. (NGTL) system expansion program, which occurred Oct. 19, 2020. NGTL subsequently began compressor station field work in December 2020 and pipeline construction in January 2021. In-service is expected in late 2021 with remaining program components completed by April 2022.

Due to COVID-19, on Dec. 29, 2020, the British Columbia Provincial Health Officer issued an order restricting the number of workers on site for industrial projects in the Northern Health Authority region of British Columbia. TC Energy’s 420-mile, 2.1-bcfd Coastal GasLink pipeline project is working with provincial health authorities to safely resume construction in accordance with the objectives and timelines defined in the order.

The project is also working with the LNG Canada liquefaction project on establishing a revised project plan for Coastal GasLink. TC Energy expects that pipeline costs will increase and the schedule will be delayed compared to the previously disclosed estimate due to scope increases, permit delays, and the impacts from COVID-19, including the provincial health order. The company sold a 65% stake of the project in 2020 but remains builder and operator (OGJ Online, Aug. 17, 2020).

On Oct. 28, 2020, TC Energy approved the Wisconsin Access Project that will replace, upgrade, and modernize portions of the ANR pipeline system while reducing emissions and expanding capacity by 72 MMcfd. The anticipated in-service date is second-half 2022.

Construction of TC Energy’s 261-mile, 886-MMcfd Villa de Reyes natural gas pipeline in Mexico is ongoing. Phased in-service has been delayed due to COVID-19 contingency measures which have impeded issuance of work authorizations due to administrative closures. Subject to timely reopening of government agencies, the company expects to complete construction of Villa de Reyes in 2021.