TransCanada’s US natural gas pipeline business is expected to provide the company its biggest financial boost by segment through the end of the decade thanks to growing Appalachian production and Gulf Coast demand for LNG exports, the operator said Tuesday.

The efforts — designed to carry more gas to residents, businesses, industrial plants and export terminals — are bolstered by forecasts that output from the Appalachian Basin, which includes the Marcellus and Utica shale plays, will grow to over 40 Bcf/d in 2027 from 25 Bcf/d this year. The company also estimates that Gulf demand will increase by over 14 Bcf/d during the next 10 years.

The outlook highlights TransCanada’s increased focus on the US market through billions of dollars in new projects and expansions of existing pipelines. While adding long-term transportation contracts provides stability, the strategy also comes with potential roadblocks, especially on the regulatory front amid aggressive resistance from environmental and community groups.

“As a company, we are prepared for those challenges that lie ahead,” CEO Russ Girling said during TransCanada’s annual investor day presentation webcast from Toronto. “While pipelines aren’t perfect, we continue to believe they are by far the safest and most efficient method of moving both natural gas and crude oil to markets that need them.”

Views: 320

Reply to This

© 2018   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service