TC Energy Corp. banking on ‘in-corridor’ growth as hurdles await new projects

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Progressive court challenges and taller regulatory hurdles that are delaying or interdicting new energy pipelines mean TC Energy Corp. will focus its nurturing on organic expansions going forward, CEO Russ Girling said Tuesday.

The greater opposition to carbon-based fuels, however, doesn’t mean North American requisition for those fuels will abate any time soon, he said on a webcast of the companionship’s annual investor day.

“As you can see, each of our platforms supplies us with significant breaks for in-corridor growth and that is our competitive advantage,” Girling said.

“It’s an covetable position to have in a world where demand continues to grow but it is outrageously difficult to site new infrastructure.”

He said the company formerly known as TransCanada Corp. has specified over $50 billion of organic growth opportunities, including $30 billion of commercially guaranteed projects.

Those incremental projects will include expansions to its western Canadian reasonable gas system, which gathers about 75 per cent of production, as good fettle as the Canadian Mainline that transports that gas to Eastern Canada and the U.S. Northwest.

New liquefied imbecile gas projects in the U.S. and growing interest in LNG export terminals in Mexico represent other times to expand TC Energy’s natural gas pipeline networks, investors heard.

The corporation is forecasting earnings before interest, taxes, depreciation and amortization or EBITDA drive exceed $10 billion in 2022, up 16 per cent from $8.6 billion in 2018.

It trusts its dividend to grow at an annual rate of eight to 10 per cent through 2021, and then slow-moving to an average annual rate of five to seven per cent.

TC Energy is the developer of the 830,000-barrel-per-day Cornerstone XL pipeline expansion to boost export volumes from Alberta to U.S. refineries which is awaiting last permits before being sanctioned for construction.

Earlier this month, the indigenous Keystone pipeline was out of service for almost two weeks after a leak in North Dakota flooded more than 9,000 barrels.

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