TC Energy Raises 2025 Profit Outlook Amid Natural Gas Demand, Updates on Mexican Operations
(Reuters) — TC Energy said on Tuesday it expects 2025 core profit to be in the range of about C$10.7 billion to C$10.9 billion, higher than its 2024 forecast of C$9.9 billion to C$10.1 billion, due to rising demand for natural gas and electrification.
The U.S. Energy Information Administration, in its latest short term energy outlook report, saw the country's gas consumption rising to a record 90 billion cubic feet per day (Bcf/d) in 2024.
The consumption is expected to ease to 89.6 Bcf/d in 2025, which will still be higher than the previous record of 89.1 Bcf/d in 2023.
It also announced four new growth projects for natural gas and nuclear power generation, which would total nearly C$1.5 billion ($1.07 billion) in capital expenditure.
"We don't need to adopt projects of a very large scale anymore...we've got a whole backlog of projects we're pursuing," said TC Energy executives on the investor day call.
"We can deliver on our growth without going down that path."
North America's rising natural gas demand was driven by higher LNG exports, retiring coal plants and growing consumption in data centers associated with artificial intelligence operations, TC Energy had said in its third-quarter earnings call.
TC Energy intends to decrease its market exposure in its Mexican operations by late 2025 or 2026, once the Southeast Gateway pipeline begins transporting natural gas.
The pipeline will supply up to 1.3 billion cubic feet per day of natural gas to Mexico and is now projected to cost between $3.9 billion and $4.1 billion, a reduction from the initial estimate of $4.5 billion.
Earlier this year, the TC Energy had said it would sell a 5.34% stake in the NGTL system and Foothills assets in western Canada to an Indigenous-owned investment partnership.
While talks are still ongoing, the company noted that the ownership structure could differ from initial plans, without providing further details.
($1 = 1.3973 Canadian dollars)
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