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Expansion for TC Energy in Midwest US to cost $800 million
11/17/2021
The WR Project, consisting of a series of ventures, is expected to represent a capital investment of about $800 million. Approximately four years after its inception, the project will go into service.
According to the idea, existing lines of the ANR Pipeline Company (ANR) will be expanded to serve markets in the Midwestern United States simultaneously reducing discharge by 30,000 metric tons CO2e per year - equivalent to removing more than 6,500 cars from the road each year.
TC Energy approved the project after ANR secured long-term transportation agreements to meet demand in the Midwest.
The expansion of ANR's natural gas system will provide local area distribution networks and electric producers with an additional natural gas capacity of up to 157,000 dekatherms per day in markets where significant coal-fired and vintage gas generation has recently been retired. Another part of the project will also include the replacement of existing natural gas-powered compressor units with electric motor compressors equipped with fuel switching capability.
In TC Energy's view, if the electric drive units are fully utilized, the electrification of horsepower for the project is expected to result in a 43% reduction in carbon dioxide equivalent emissions at the source. According to the CEO and the president of the company, François Poirier, such an outcome is consistent with its business strategy to optimize an existing footprint while building more sustainable infrastructure and growing organically through an existing corridor.
The project is expected to be operational by the end of 2025, thanks to long-term transportation agreements secured by ANR.
It is anticipated that the company will convert even more natural gas compressors to electric motors in order to reduce the volume of emissions generated from its transmission and storage facilities in the coming years.
To ensure compliance with these objectives, TC Energy is currently working on additional renewable energy projects. A number of initiatives include pumped hydro storage, solar and wind alternatives, carbon transportation, and sequestration, as well as large-scale hydrogen production hubs.
A similar set of upgrades was sanctioned earlier this year by TC Energy for a Lower 48 pipeline in the Northeast. By 2025, the $700 million VR Project will partially electrify the Columbia Gas Transmission system. The project stretches accordingly from New York to the Midwest and Southeast.
The energy industry is undergoing unprecedented growth: due to both an increase in energy demand and a shift toward cleaner energy sources. This has created a significant number of investment opportunities and favorable market conditions to exploit. TC Energy is just one of those who lead this trend.
As such, the company has set itself a goal of achieving net-zero emissions by 2050 with an intermediate point of a 30% emission reduction from its operations by 2030. But whether it will be achieved in time remains to be seen.
If you also share such aspirations or simply want to stay atop of industry trends, do not shy away from contacting us - we have plenty of useful data for you to enjoy.
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The green trend: TC Energy pledges to be carbon-free by 2050
TC Energy, the Canadian gas giant, recently announced its environmental, social, and governance goals, as well as emission reduction strategies. The company aims to become 100% emission-free by 2050 while promising to cut greenhouse gas emissions intensity from its operations by 30% by 2030 as an interim measure.
The Final Stretch: Energy Transfer Pushes For Mariner East Project Ahead Of The Stunning Q3 Results
Energy Transfer's lead in the world's NGL exports booked the company another successive quarter. With a global market share of almost 20%, the company is nigh unstoppable. But will it be enough to, finally, push the Mariner East project over the edge? If everything goes as planned, Mariner East's last segment could be operational by the end of the first half of 2022.
Kinetik Holdings recently announced a series of transactions in the energy sector. They struck a deal to buy Durango Permian infrastructure for $765 million. At the same time, they're selling their 16% share in the Gulf Coast Express Pipeline to ArcLight Capital Partners for $540 million. The total purchase cost includes $510 million in cash paid immediately and an additional $30 million that will be paid later, depending on whether they decide to expand further.
Recently, the Permian has seen significant acquisitions: Exxon Mobil purchased Pioneer Natural Resources for about $60 billion. Diamondback Energy's $26 billion deal to acquire Endeavor Energy Resources is currently on hold due to requests from the U.S. Federal Trade Commission. Occidental’s acquisition of CrownRock for $12 billion in the Midland.
EOG Resources is pushing boundaries in Ohio's Utica oil play and now drilling on the Sable pad, also located in Noble County. This site features the 3.7-mile lateral currently under construction. The company's first multi-well pads in the area Timberwolf and Xavier have each produced over 200,000 barrels of oil since their inception—Timberwolf in August and Xavier in October. A third site, the four-well White Rhino pad in Noble County, is also showing promising early results, according to Keith Trasko, EOG’s Senior Vice President of Exploration and Production, who noted the wells are performing as expected in their initial weeks.