TC Energy to advance Keystone XL, reports improved 2019 earnings

TC Energy Corp. plans to advance its Keystone XL crude pipeline project pending resolution of remaining permitting and legal issues. The company had fourth-quarter 2019 net income of $1.1 billion, flat from the same period in 2018. For the year ended Dec. 31, 2019, net income was $4 billion, compared with $3.5 billion in 2018.

Keystone XL still requires an approval from the US Army Corp of Engineers (ACE) for access to waters in the US and the results of outstanding litigation in federal court in Montana, contesting a March 2019 presidential permit superseding a 2017 permit. TC Energy said it would take a final investment decision once these items are resolved.

The US Department of State issued a final supplemental environmental impact statement (SEIS) for the project in December 2019. The final SEIS supplements the 2014 Keystone XL SEIS and underpins the US Bureau of Land Management (BLM) and US Army Corps of Engineers permits.

On Feb. 7, 2020, TC Energy received approval from the BLM allowing for construction of the Keystone XL pipeline across federally managed lands in Montana and land managed by the ACE at the Missouri River.

Lower contributions from TC Energy’s Canadian natural gas pipelines and its liquids pipelines impacted the company’s earnings, the latter primarily due to decreased volumes on the Keystone pipeline system, lower margins on liquids marketing activities, and the sale of an 85% equity interest in Northern Courier pipeline on July 17, 2019. Northern Courier is a 90-km pipeline system transporting bitumen and diluent between the Fort Hills mine site and Suncor Energy’s terminal north of Fort McMurray, Alta.

TC Energy had a higher contribution from its US natural gas pipelines.