TC Energy Approves $1.5 Billion Columbia Gas Expansion to Boost U.S. Power Demand
TC Energy has approved a $1.5 billion expansion of its Columbia Gas system, adding capacity to support growing U.S. power and industrial demand.
(P&GJ) — TC Energy has approved a $1.5 billion expansion of its Columbia Gas Transmission system, a move aimed at increasing natural gas capacity to meet rising demand from power generation and industrial markets in the United States.
The project, known as the Appalachia Supply Project, is designed to add up to 0.8 billion cubic feet per day of incremental capacity, with an anticipated in-service date in 2030. The expansion is backed by a 20-year take-or-pay contract with an investment-grade utility, providing long-term revenue certainty.
TC Energy said the project will extend its reach into a high-growth corridor serving power and industrial demand, as electricity needs continue to rise across the U.S. heartland.
The company noted that the expansion could be scaled to as much as 2.0 billion cubic feet per day through future phases, depending on market demand.
The approval comes as natural gas demand continues to increase, driven by power generation, data center growth and broader industrial activity.
Separately, TC Energy reported first-quarter comparable EBITDA of C$3.1 billion (about $2.3 billion USD), up from C$2.7 billion a year earlier, supported by higher pipeline volumes across its North American network.
Deliveries to LNG export facilities averaged 3.9 billion cubic feet per day during the quarter, up 12% year over year, reflecting continued growth in U.S. LNG demand.