TC Energy Approves $900 Million Northwoods Pipeline Expansion for U.S. Midwest
(P&GJ) — TC Energy Corp. approved its Northwoods project in April, marking a major expansion of its ANR pipeline system aimed at meeting rising demand from natural gas-fired power generation and data centers in the U.S. Midwest.
The Calgary-based company revealed the project during its first quarter 2025 earnings report, highlighting it as a cornerstone of its near-term growth strategy alongside advancing its Southeast Gateway pipeline.
The Northwoods project will add 0.4 Bcf/d of capacity through pipeline looping, new compressor stations, and other system upgrades. The $900 million project is backed by a 20-year, take-or-pay contract with a creditworthy customer, ensuring steady returns and low risk. TC Energy expects the expansion to be in service by late 2029.
“As natural gas and electricity are forecasted to drive the majority of growth in final energy consumption through 2035, we are pleased to announce the Northwoods project on our ANR system, designed to serve electric generation demand in the U.S. Midwest, including data centers and overall economic growth,” said François Poirier, President and CEO of TC Energy.
The project is targeting a build multiple of five to seven times, in line with TC Energy’s strategic focus on pursuing high-value, in-corridor opportunities supported by long-term contracts.
“Northwoods exemplifies our disciplined strategy and our ability to capture high-value, low-risk opportunities across our portfolio,” Poirier added.
Southeast Gateway Nears In-Service
While Northwoods will serve future Midwest demand, TC Energy also reported significant progress on the Southeast Gateway pipeline in Mexico. Construction is complete on the 715-km pipeline, which will deliver 1.3 Bcf/d of natural gas under a fully contracted arrangement with Mexico’s Comisión Federal de Electricidad (CFE).
TC Energy said CFE has accepted all requirements for service, and final regulatory approval is expected by the end of May. Southeast Gateway was built approximately 13% under budget and will enter service soon after receiving rate approval from Mexico’s Comisión Nacional de Energía (CNE).
The Author
Mary Holcomb is the Digital Editor & Operations Manager at Gulf Energy Information, overseeing the Pipeline & Gas Journal, World Oil, and Underground Infrastructure brands. With over 5 years of experience, she drives digital content strategy and operations for these industry-leading publications.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- DOE Considers Cutting Over $1.2 Billion in Carbon Capture Project Funding
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Newsom Seeks to Aid Struggling Refiners Following Valero’s California Exit
Comments