Table of Contents
TC Energy strengthened its position in the North American natural gas market after reporting a strong first quarter of 2026 and approving the Appalachia Supply Project, a $1.5 billion expansion of its Columbia Gas system.
TC Energy boosts its pipeline network with new financial results
TC Energy Corporation began 2026 with robust operating and financial performance, supported by higher utilization of its natural gas transportation systems in North America. The company reported comparable EBITDA of C$3.1 billion during the first quarter, representing a 14% year-over-year increase.
In addition, comparable earnings reached C$1.03 billion, equivalent to $0.99 per share. Although net income attributable to common shares declined to C$899 million, from C$978 million in the same period of 2025, the company highlighted the resilience of its regulated, low-risk business model.
In this context, the company refocused on the reliability of its assets. During the quarter, TC Energy achieved seven delivery records in North America, with highs across the Canadian pipeline systems, the NGTL network, U.S. pipelines, and the ANR system.
Appalachia Supply Project will expand Columbia Gas
The most significant strategic announcement was the approval of the Appalachia Supply Project, a $1.5 billion expansion of the Columbia Gas system. The project is designed to add up to 0.8 billion cubic feet per day of capacity and meet growing demand from gas-fired power generation and energy-intensive industries.
According to the company, the infrastructure is expected to enter service in 2030 and will be backed by a 20-year take-or-pay contract with an investment-grade utility. Likewise, TC Energy projects a 7.3x build multiple, a key indicator for measuring the relationship between investment and expected EBITDA generation.
The project also creates room for future expansions. The company indicated that capacity could increase to as much as 2.0 billion cubic feet per day in later phases, enabling it to capitalize on growing power demand in the Appalachian industrial and energy corridor.
Natural gas and LNG demand supports growth
Pipeline activity showed high utilization during the quarter. Deliveries on Canadian pipelines averaged 29.7 Bcf/d, a 3% increase versus the prior year. Meanwhile, flows on U.S. pipelines reached 32.6 Bcf/d, a 5% year-over-year increase.
Meanwhile, deliveries to liquefied natural gas facilities averaged 3.9 Bcf/d, a 12% increase compared to the first quarter of 2025. This performance reinforces TC Energy’s role as a key operator in moving feed gas to North American LNG export terminals.
The company also emphasized that it transports nearly 30% of the natural gas consumed on the continent. As a result, its network continues to gain relevance in an environment marked by higher power demand, electrification, data centers, and industrial growth.
Coastal GasLink and Crossroads strengthen the project portfolio
In addition to the Columbia Gas project, TC Energy advanced commercial agreements with LNG Canada for Phase 2 of Coastal GasLink. These agreements establish a framework to evaluate the proposed expansion and limit the company’s capital exposure and construction risk.
Moreover, the Crossroads system open season was oversubscribed by 2.5 times. This result shows customer interest in adding transportation capacity to U.S. Midwest markets, where gas consumption could increase due to power generation and new industrial loads.
In this way, TC Energy seeks to combine expansion, financial discipline, and long-term contracts. The strategy aims to grow in corridors with visible demand without excessively increasing exposure to execution risks.
Regulated agreements improve financial visibility
The quarter also included regulatory progress on key assets in Canada and the United States. TC Energy submitted a negotiated settlement to the Canadian regulator for the Canadian Mainline, covering the 2027–2030 period. The proposal maintains a 10.1% return on equity and includes up to C$200 million to support additional capacity.
Likewise, ANR and Great Lakes reached preliminary agreements with their customers. The company expects regulatory approvals to progress during 2026, which would provide greater predictability for its future revenues.
These agreements are relevant because they reduce uncertainty in regulated networks that serve as a base of recurring revenue. In parallel, they enable sustained selective investments in natural gas infrastructure.
TC Energy outlook for 2026
TC Energy reaffirmed its 2026 guidance, with expected comparable EBITDA between C$11.6 billion and C$11.8 billion. It also anticipates that comparable earnings per share will remain above the levels recorded in 2025.
In terms of investment, the company expects capital expenditures between C$6.0 billion and C$6.5 billion before non-controlling interests. On a net basis, the figure would be between C$5.5 billion and C$6.0 billion.
In addition, the board of directors increased the quarterly dividend to $0.8775 per share, equivalent to $3.51 on an annualized basis. With this, TC Energy maintains its appeal for investors focused on income generation and financial stability.
The company also reaffirmed its long-term target of 4.75x debt-to-EBITDA. This message confirms that project expansion will continue to be accompanied by capital discipline, leverage control, and prioritization of investments supported by contracted demand.
Source: TC Energy
Photo: Shtterstock