TC Energy expects higher core profit in 2025 on natgas and electricity demand
TC Energy announced on Tuesday that it expects its core profit in 2025 to be between C$10.7 and C$10.9 Billion, higher than the C$9.9 to C$10.1 Billion forecast for 2024. This is due to an increase in demand for electricity and natural gas.
In its most recent short-term energy outlook report, the U.S. Energy Information Administration predicted that gas consumption in the United States would reach a new record of 90 billion cubic feet (bcfd), in 2024.
In 2025 the consumption will be lower, but still higher than its previous record of 89.1 billion cubic feet per day in 2023.
The government also announced the launch of four new projects to increase nuclear and natural gas power generation. These projects will total approximately C$1.5 billion (1,07 billion) in capital expenditure.
On the call with investors, TC Energy executives said: "We no longer need to adopt large-scale projects...we have a backlog of projects that we are pursuing."
We can achieve our growth goals without taking this path.
TC Energy said that the increase in North America's natural gas consumption was due to higher LNG exports and the retirement of coal plants, as well as an increasing demand in data centers for artificial intelligence operations.
TC Energy plans to reduce its exposure to the Mexican market by 2025 or 2026 once the Southeast Gateway pipeline starts transporting natural gases.
The cost of the pipeline, which will deliver up to 1.3 billion cubic feet of natural gas per day to Mexico, is expected to be between $3.9 billion to $4.1 billion. This is a decrease from an initial estimate of around $4.5 billion.
Earlier in the year, TC Energy announced that it would be selling a
The stake is 5.34%
The NGTL System and Foothills Assets in Western Canada will be transferred to a Native-owned investment partnership.
The company stated that while talks are ongoing, ownership could differ from the initial plans without giving further details.
(source: Reuters)
