TC Energy Corp. had net income for second-quarter 2021 of $982 million, compared with net income of $1.3 billion for the same period in 2020. It attributed the drop in income to the impact of common shares issued for the acquisition of TC Pipelines LP in first-quarter 2021.
The company had recorded a $2.2-billion after-tax asset impairment charge in its first-quarter 2021 earnings, related to termination of the Keystone XL crude oil pipeline project (OGJ Online, June 10, 2021) and shared with the Government of Alberta, but is advancing $21 billion in other capital projects.
In its earnings report, TC Energy noted that due to scope changes, permit delays, and impacts from COVID-19, it continues to expect costs of its 670-km (420-mile), 2.1-bcfd Coastal GasLink natural gas pipeline project, delivering Alberta production to the 14-million tonne/year LNG Canada liquefaction plant in Kitimat, BC, to increase significantly and the project itself to be delayed. Coastal GasLink is in a dispute with LNG Canada with respect to certain costs and the impacts on schedule. If a resolution is not reached in the near term, TC Energy said that Coastal GasLink may be required to suspend certain key construction activities but would continue with work required for safety reasons and regulatory compliance.
The company has sanctioned the VR enhancement project on its Columbia Gas Transmission system in the US. The project is intended to improve reliability and lower emissions at a cost of $700 million and is targeted to enter service second-half 2025.
Construction of TC Energy’s 261-mile, 886-MMcfd Villa de Reyes gas pipeline in Mexico is ongoing but has been delayed by COVID-19 contingency measures. The company expects to reach partial in-service by end-2021, with the remainder of construction completed during first-half 2022.