TC Energy Corp. says it is prepared to continue investing in its extensive Alberta natural gas pipeline network as the province faces what the company describes as “generational demand” for the fuel.
The statement comes days after an Alberta cabinet report was leaked, raising concerns about whether the Calgary-based pipeline operator will be able to meet growing demand from the province’s emerging artificial intelligence data centre industry, oilsands projects and other major sources of gas consumption.
The report says TC Energy’s planned expansion of its Nova Gas Transmission Ltd. (NGTL) system is “misaligned” with Alberta’s projected demand growth. It also argues that the company’s dominant position in the market has contributed to a “market failure,” leaving some key regions experiencing difficulty accessing natural gas.
The NGTL network has been operating since 1957. It has since developed into an extensive pipeline web across Alberta, with connections extending into northeastern British Columbia. The system currently transports an average of approximately 15 billion cubic feet of natural gas per day.
TC Energy maintains that demand for natural gas is increasing faster than new infrastructure can be constructed. The company says it has nevertheless invested “more than anyone” in expanding its system.
Over the past decade, TC Energy says it has invested $15 billion in expansion projects. It is also moving ahead with another $1 billion in planned projects aimed at increasing the network’s capacity.
“TC Energy is prepared to keep investing in NGTL and expand the system to meet the scale of opportunity in front of Alberta and Canada,” the company said.
But TC Energy says additional investment alone will not be enough to match the pace of demand. It is calling for greater co-operation among the various groups involved in developing energy infrastructure.
“This will require all of us industry, customers, regulators, governments, stakeholders and rightsholders to come to the table and improve the conditions to get infrastructure built,” the company said.
“The key is working together to bring forward credible solutions, capital and capacity quickly enough to support Alberta’s growth and enable Canada to unlock the opportunity to meet the moment.”
The Canadian Press has reviewed the Alberta cabinet report, which was first reported last week by The Narwhal.
Among its recommendations, the report proposes that Alberta establish two Crown corporations to help stimulate the construction of new natural gas transmission lines.
Premier Danielle Smith, speaking Saturday on her “Your Province Your Premier” radio call-in show, said it is “unlikely” that the province will take that step, arguing that there should be sufficient interest from private-sector companies to develop the necessary infrastructure.
The cabinet report also identifies potential legal challenges as a consideration. It specifically flags possible court action by TC Energy and potentially ATCO Gas and Pipelines Ltd. as “legal considerations.”
The debate highlights the growing pressure on Alberta’s natural gas infrastructure as new sources of demand emerge, while questions remain over how quickly additional transmission capacity can be developed and who should be responsible for delivering it.
