TC Energy Corp. has significantly increased its long-term outlook for North American natural gas demand, citing the rapid expansion of data centres, growing liquefied natural gas (LNG) exports and rising industrial activity as key drivers of future consumption.
The Calgary-based energy infrastructure company now expects natural gas demand to increase by 51 billion cubic feet per day (bcf/d) between 2025 and 2035, up from its previous forecasts of 40 bcf/d released in late 2024 and 46 bcf/d issued earlier this year.
Speaking during the company’s second-quarter earnings conference call, President and CEO François Poirier said nearly 70% of the projected demand growth will occur in regions where TC Energy already has an established pipeline network, including the U.S. heartland, Alberta and Mexico.
He noted that the company’s existing infrastructure places it in a strong position to benefit from the expected increase in gas transportation needs.
Data centres fuel pipeline expansion opportunities
The rapid growth of artificial intelligence is becoming one of the strongest catalysts for natural gas demand.
Modern data centres require enormous amounts of electricity to power advanced computing infrastructure, with some facilities consuming as much energy as an entire city. In many regions, particularly Alberta, that electricity is expected to come primarily from natural gas-fired generation.
Earlier this year, TC Energy offered additional transportation capacity within the Greater Edmonton Area, with all available pipeline space fully subscribed.
The company also launched another capacity offering covering its intra-Alberta pipeline network for the 2030–2032 period, attracting record participation from data centre developers.
According to Poirier, the overwhelming customer interest has prompted TC Energy to evaluate further expansion opportunities to meet future demand.
U.S. expansion plans continue
South of the border, TC Energy is preparing to make a final investment decision later this year on the expansion of its Crossroads pipeline project, which stretches approximately 365 kilometres across Indiana and Ohio.
The proposed expansion would increase pipeline capacity by 1.5 billion cubic feet per day.
Interest from customers has significantly exceeded expectations. The company previously reported receiving requests for capacity amounting to 2.5 times the volume initially offered.
TC Energy has already secured agreements with several shippers and says negotiations with additional customers are continuing as it considers further expanding the project’s scope.
Alberta remains a major data centre hub
Canada’s data centre industry has increasingly concentrated its investments in Alberta, where the provincial government has actively promoted large-scale technology developments.
To reduce pressure on the provincial electricity grid, Alberta has prioritized projects capable of generating their own power, a strategy that has largely favoured natural gas-fired generation.
Although some communities have expressed concerns about increased emissions, noise, water consumption and higher utility costs associated with large data centres, Poirier said those issues have not slowed customer demand for pipeline infrastructure.
Strong quarterly financial performance
Alongside its revised market outlook, TC Energy reported improved financial results for the second quarter.
The company posted net income attributable to common shareholders of $987 million, compared with $833 million during the same period last year.
Earnings reached 95 cents per share for the quarter ended June 30, up from 80 cents per share a year earlier.
Earnings were up to 94 cents per share, from 82 cents per share in the second quarter of 2025, on a comparable basis.
Revenue on a quarterly basis also improved, rising to $3.96 billion from $3.74 billion in the comparable period a year ago, reflecting the continued strength across the company’s North American energy infrastructure business.
