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

Canadian pipeline giant TC Energy is urging co-operation from industry, customers, regulators, governments, and stakeholders to expand its natural gas network and meet "generational demand." The company, which transports three-quarters of Western Canada's natural gas, released its statement following the leak of an Alberta cabinet report expressing concern over the company's ability to serve the province's emerging artificial intelligence data centre industry, oilsands projects, and other sources of demand growth.

The report questions TC Energy's planned expansion of its Nova Gas Transmission Ltd. pipeline, stating that the company's dominant market position has resulted in a "market failure" that leaves key growth regions without access to gas. The NGTL network, which has been operational since 1957, transports an average of 15 billion cubic feet of gas per day across Alberta and into northeastern British Columbia.

TC Energy insists that natural gas demand is growing at a faster rate than infrastructure can be built and has invested "more than anyone" to expand its system. The company has spent $15 billion on expansion projects in the last decade and is planning another $1 billion in projects. According to TC Energy, meeting the scale of opportunity in Alberta and Canada will require all parties to collaborate and develop credible solutions, capital, and capacity quickly enough to support the province's growth and enable Canada to capitalize on the moment.

While the Canadian Press has reviewed the Alberta cabinet report, Premier Danielle Smith has suggested that creating two Crown corporations to expedite new natural gas transmission lines is unlikely, stating that there should be sufficient private-sector interest. The report also notes court challenges from TC Energy and potentially from ATCO Gas and Pipelines Ltd. as legal considerations.