The board of North American pipeline company TC Energy has approved its plan to split into two separate energy infrastructure companies by spinning off its Liquids Pipelines business.
The spinoff will result in creation of two entities – TC Energy and Liquids Pipelines Company (LPC).
Go deeper with GlobalData
Bevin Wirzba, who is currently TC Canadian natural gas and liquids pipelines executive vice-president, will become CEO of LPC.
The decision to spilt into two independent, investment-grade, publicly listed companies follows the completion of a two-year strategic review and will help reduce debt.
The company said in a statement: “The spinoff will unlock shareholder value by providing both companies with the flexibility to pursue their own growth objectives through disciplined capital allocation, enhancing efficiencies and driving operational excellence.”
TC Energy will focus on natural gas infrastructure spanning 93,700km, as well as nuclear, pumped hydro energy storage and new energy opportunities.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHeadquartered in Calgary, Canada, with an office in Houston, Texas, LPC will be a critical infrastructure company with highly strategic assets.
It will focus on enhancing the value of its asset base including 4,900km of existing crude oil pipelines. The assets also include the critical Keystone pipeline system.
In a press statement, TC Energy said: “As a low-risk business with 96% investment-grade customers and 88 per cent of comparable EBITDA contracted, the Liquids Pipelines Company retains the TC Energy premium value proposition, and expands upon it with the flexibility to focus on its competitive advantages.”
The spinoff is due to be completed in the second half of 2024 on a tax-free basis.
