TC Energy urges co-operation on growing natural gas network to meet ‘generational’ demand

TC Energy, the pipeline company that transports three quarters of Western Canada's natural gas, has acknowledged its commitment to investing in its extensive Alberta network to keep pace with "generational demand" for the fuel. This statement came in the wake of an Alberta cabinet report that expressed concerns over TC Energy's ability to serve the province's burgeoning artificial intelligence data centre industry, oil sands projects, and other sources of growing demand.

The Alberta cabinet report questioned whether TC Energy's planned expansion for its Nova Gas Transmission Ltd. pipeline is well-aligned with the province's projected demand growth and alleged that the company's dominant position in the market has resulted in a "market failure." The NGTL network, operational since 1957, spans across Alberta and into northeastern British Columbia, transporting an average of 15 billion cubic feet of gas daily.

TC Energy insists that natural gas demand is outpacing the capacity for new infrastructure to be built. Over the past decade, the company has invested more than any other in expanding its system, spending $15 billion on expansion projects and planning another $1 billion in such projects moving forward. In response to the growing demand, TC Energy stated it is prepared to continue investing in the NGTL network and expand it further to meet the scale of opportunities available in Alberta and Canada.

However, the company emphasized the need for cooperation among all stakeholders to improve the conditions for infrastructure development. This includes working together to identify credible solutions, secure sufficient capital, and deploy additional capacity in a timely manner to support Alberta's growth and help Canada capitalize on the momentous opportunity to meet its energy needs.

The Canadian Press obtained a copy of the Alberta cabinet report, which the Narwhal first reported on last week. The report recommended that the province create two Crown corporations to facilitate the development of new natural gas transmission lines. Premier Danielle Smith, in a recent radio interview, suggested that such a move is "unlikely" as she believes there should be ample private-sector interest.

Court challenges from TC Energy and potentially ATCO Gas and Pipelines Ltd. were noted as "legal considerations" in the report.