TC Energy Corp., Calgary, plans to separate the company into two independent, publicly listed companies through the spinoff of the operator’s liquids pipelines business, allowing both companies to pursue their own growth objectives, the company said in a release July 27.
TC Energy post-transaction will be an energy infrastructure company with alignment across natural gas pipelines and power and energy solutions business units.
It will operate one of North America’s largest natural gas energy infrastructure networks spanning 93,700 km, deliver about 30% of total natural gas supply for LNG export from the US, and will provide Canada’s first direct connection to LNG markets with completion of Coastal GasLink.
The power business has capacity to provide 4,600 MW of electricity.
The liquids pipelines company will operate 4,900 km of crude oil pipeline infrastructure supplying crude to over 14 Mbbl/d of refining and export capacity and transporting 16% of crude exported from the Western Canadian Sedimentary Basin.
Following the spinoff, expected in second-half 2024, François Poirier will remain as president and chief executive officer of TC Energy. Effective immediately, Stanley G. Chapman, III is promoted to executive vice-president and chief operating officer, natural gas pipelines, to integrate the company’s geographically dispersed natural gas business units into a single, unified natural gas pipelines business.
The new liquids pipelines company will be led by Bevin Wirzba as president and chief executive officer. The company will be headquartered in Calgary, Alta., with an office in Houston, Tex.
In addition to TC Energy shareholder and court approvals, the spinoff is subject to receipt of favorable tax rulings from Canadian and US tax authorities, receipt of necessary regulatory approvals, and satisfaction of other customary closing conditions. The company expects that the transaction will be completed in second-half 2024.
