, which has been looking to sell assets and cut debt, said on Thursday it would spin off its oil pipeline business and focus on transporting natural gas, saying the businesses would be more valuable apart.Calgary, Alberta-based TC previously disclosed plans to sell assets this year to reduce debt and fund its other projects such as the Coastal GasLink pipeline in British Columbia, which is grappling with high costs.
TC's liquids business is best known for its Keystone pipeline, an oil conduit from Alberta to U.S. refineries thatTC CEO Francois Poirier said in a statement the split would generate greater shareholder value by allowing each company to focus on its own growth and operations, while stabilizing TC's balance sheet. The company decided on the spinoff after a two-year review.
Along with natural gas, TC's business will include its interests in power generation and energy storage, along with projects related to the energy transition such as carbon transportation and hydrogen. Bevin Wirzba, currently executive vice-president of TC's Canadian natural gas and liquids pipelines, will be CEO of the liquids company.
TC also reported adjusted second-quarter profit of C$1 billion or 96 Canadian cents per share, compared to C$1 billion or C$1 per share a year earlier.The company said its Coastal GasLink project is 91% complete.Our Standards:Covers energy, agriculture and politics in Western Canada with the energy transition a key area of focus.