Trump's return could boost Canada's energy sector as TC Energy focuses on natural gas expansion
On Tuesday, François Poirier, CEO of Calgary-based TC Energy Corp., described Donald Trump’s return to the White House as “good news for Canada’s energy sector” and an opportunity for the company.
Speaking to BNN Bloomberg after TC Energy’s investor day presentation in Toronto, Poirier noted Trump’s focus on affordability and energy security as critical to North America’s integrated energy system.
“He (Trump) is very focused on affordability. He understands the role that energy plays, and energy security, on the international stage,” Poirier said.
He emphasised the importance of free energy flow between Canada, the US, and Mexico, adding, “Having more supply of oil and gas from Canada will help contribute to lower prices in the US.”
TC Energy has experienced the political impact of US energy policies firsthand. Its Keystone XL project, a 1,900-kilometre pipeline designed to transport crude oil from Alberta’s oilsands to Gulf Coast refineries, faced repeated challenges.
The project was rejected under the Obama administration, revived by Trump, and cancelled by President Joe Biden on his first day in office in 2021.
Last month, TC Energy spun off its crude oil pipeline business into a new company, South Bow Corp., which now owns the Keystone system. South Bow is focused on safely growing its crude oil transport capabilities to meet US demand.
In discussions with the Alberta government following the US election, TC Energy clarified that Keystone XL’s future lies with South Bow.
However, Poirier highlighted opportunities for TC Energy in expanding Canadian natural gas exports to US markets.
“Our conversations have been more around expanding access to US markets for natural gas,” he said, particularly in the northwest and Midwest regions, where Canadian gas already holds significant market share.
TC Energy has shifted its focus to natural gas, seeing strong demand growth for the commodity. The company predicts North American natural gas demand will rise by 40bn cubic feet per day by 2035, reaching 160bn cubic feet per day.
Poirier attributed this growth to the phase-out of coal, increased liquefied natural gas (LNG) exports, and the rise of data centres powering the AI revolution.
Approximately two-thirds of the 350 proposed or under-construction data centres in North America are within 50 miles of TC Energy’s assets.
Poirier is confident natural gas will play a crucial role in meeting the energy needs of these facilities.
“The issue with wind and solar is that on its own, you don’t have 100 per cent reliability because these data centres operate on a 24/7 basis,” he said. “They consume energy on a 24/7 basis, which is why we’re so confident in the role that natural gas will play in empowering data centre growth.”
On Tuesday, TC Energy announced $1.5bn in capital spending across four new projects, including two US coal-to-gas conversion projects and a liquefied natural gas peaking project in southeast Virginia. The company will also invest $175m in the Bruce Power expansion.
Poirier reaffirmed TC Energy’s commitment to its $32bn capital growth program through 2027 but acknowledged the abundance of opportunities in natural gas.
“We see probably twice the opportunity set that we can afford to spend our human and our financial capital on,” he said. “Actually, the skill that we’ve had to learn is how to say no, because we see so many good projects come across our desks.”
