Tue, Nov. 24, 11:30 AM
- Analysts are betting that renewable energy developers such as Enbridge (ENB +1.2%) and TransCanada (TRP +1.9%) will be among the best placed to make the shift to Alberta's new carbon policies, Bloomberg reports.
- As the government boosts the province’s share of renewable electricity to 30% from 9% by 2030, "renewable power contracts are going to go to the bidder that needs the least amount of government support, developers with most financial flexibility and overall lowest cost of capital” such as ENB and TRP, says National Bank Financial's Patrick Kenny.
- The two companies already are among Canada’s largest renewable power operators: ENB owns 2,065 MW of wind power across Canada, enough to power 650K homes, while TRP operates wind, hydro and nuclear plants as part of its 11.8K MW of power generation.
- TransAlta (TAC -2%) surged 9.5% yesterday as investors felt Alberta's new policy avoided the worst-case fastest potential phase-out of coal plants.
- Earlier: TransAlta +12% on Alberta climate change plan (Nov. 23)
Mon, Nov. 16, 3:39 PM
- TransCanada (TRP +2.8%) says its NOVA Gas Transmission subsidiary has signed firm contracts for 2.7B cf/day of natural gas transportation service that will require a $570M system expansion for 2018.
- TRP says growth in northwestern Alberta and northeastern British Columbia are the primary drivers for the new contracts.
- TRP says the expansion will increase its overall investment on the NGTL system beyond the already announced $7.5B of projects, of which ~$2.8B have received regulatory approval, with $800M under construction and an additional $1.7B of facilities under regulatory review.
Wed, Nov. 11, 10:57 AM
- TransCanada (TRP -2.2%) says it has been awarded a contract to build, own and operate the Tuxpan-Tula pipeline in Mexico.
- TRP says it expects to invest ~$500M in the pipeline and anticipates an in-service date in Q4 2017.
- The pipeline’s construction is backed by a 25-year natural gas transportation service contract with Mexico’s state-owned power company.
Fri, Nov. 6, 2:30 PM
- TransCanada (TRP -5.9%) says it will review all options, including seeking a new permit to ship crude oil from Canada to the U.S., following Pres. Obama's rejection of the proposed Keystone XL pipeline.
- The 1,179-mile pipeline would not have lowered U.S. gas prices, made long-term contribution to U.S. jobs, or made the U.S. less dependent on foreign energy, Obama said today at the White House.
- American Petroleum Institute president Jack Gerard worries that the rejection will have a chilling effect on other energy infrastructure projects, and says the decision will not stop production of crude oil from Canada’s tar sands - instead of being transported by pipeline, it will be shipped by train and barge, which would create more greenhouse gas emissions than the pipeline.
- "This is all environmental politics," says Oppenheimer energy analyst Fadel Gheit. "It doesn't make any economic sense to block a pipeline that will create an enormous amount of wealth to certain areas of the country [and] for Canada."
Fri, Nov. 6, 11:10 AM
- A press conference has been set for 11:45 this morning, in which Pres. Obama reportedly will announce the rejection of TransCanada's (TRP -5.3%) proposed Keystone XL pipeline.
- After seven years of delaying a final decision, Obama is expected to cite the urgency of climate change as a key reason behind his decision.
- Earlier this week, the U.S. State Department denied the company's request to suspend its permit application.
- Earlier: WSJ: Keystone pipeline rejection may come this week (Nov. 5)
Tue, Oct. 27, 2:19 PM
- TransCanada (TRP -1.8%) says it received final regulatory clearance needed to begin construction of the C$5B Prince Rupert Gas Transmission pipeline project designed to serve a proposed natural gas export facility in British Columbia.
- The permits cover the entire 560-mile route from near Hudson's Hope, B.C., to Lelu Island, off the coast of Port Edward, near Prince Rupert; the project will connect the natural gas production in the Montney fields of northeastern B.C. with the proposed PNW LNG liquefaction facility on Lelu Island.
- TRP says it was cleared to start construction on compressors and meter stations, with work on the full pipeline subject to federal approval of the LNG export facility.
Wed, Sep. 30, 2:39 PM
- Alberta premier Notley says she sees no long-term future in fossil fuels, and vows to fight climate change by cleaning up the tar sands, shutting down coal-fired power plants, and converting to wind and solar power.
- The leader of the province that sits atop the world’s third-biggest known carbon reserves in the tar sands and has ramped up production to ~2M bbl/day of crude is expected to unveil new targets for reducing greenhouse gas emissions later this fall.
- At the same time, Notley says she is not opposed to most of Alberta's proposed pipeline projects; she supports TransCanada's (TRP +1.5%) Energy East because she says it helps create value from Alberta crude, but she opposes Keystone XL because it would keep Alberta too focused on the U.S. market.
- She says Kinder Morgan (KMI +3.5%) should consider shifting its Trans Mountain pipeline to a different port in British Columbia to win over opponents to the line’s expansion.
Thu, Aug. 27, 12:58 PM
- TransCanada (TRP +5.5%) is bracing for Pres. Obama to deny a permit for the proposed Keystone XL pipeline next Thursday or Friday, when most lawmakers are away from D.C. ahead of the Labor Day weekend, Financial Post's Claudia Cattaneo writes.
- Obama is expected to say that approving Keystone would facilitate oil sands growth, make it more difficult for him to rally countries for a greenhouse gas reduction deal in Paris in December, and that the U.S. already has plenty of oil of its own, according to Cattaneo.
- The White House says the project is still under review by the State Department, and no decision has been made.
Tue, Aug. 25, 10:20 AM
- Alaska Gov. Walker says he plans to recommend that the state buy out TransCanada's (TRP +2.3%) position in the major liquefied natural gas project Alaska is pursuing.
- Walker estimates buyout costs would total ~$100M.
- The other partners in the project are Exxon Mobil (NYSE:XOM), BP, ConocoPhillips (NYSE:COP) and the Alaska Gasline Development Corp., which would hold the state's interest in liquefaction facilities.
- No decision has been made yet on whether to build the project, which is in a phase of preliminary engineering and design.
Thu, Aug. 13, 12:45 PM
- A key pipeline for delivering Canadian oil to the U.S. remains shut for a third day, leaving heavy crude stranded in Alberta and keeping its price in the cash market at ~$20 below the WTI benchmark.
- A small leak near Shelbina, Mo., coming from Enbridge’s (ENB -1.1%) Spearhead pipeline, which runs from Flanagan, Ill., to the Cushing, Okla., crude hub forced the shutdown Tuesday of the 193.3K bbl/day pipeline as well as a closing of the parallel Flanagan South pipeline, an even larger 585K bbl/day line that runs from Pontiac, Ill., to Cushing.
- ENB expects operations at Flanagan South to resume today, but does not know when Spearhead may return to service, as it continues to investigate the cause of the spill in Missouri.
- Operational problems at BP's (BP -1.5%) Whiting, Ind., refinery also keep the pressure on prices for Canada’s heavy crude as barrels continue to get backed up.
- Other related tickers: SU, IMO, TRP, CNQ, CVE, TCK, CEO, OTCPK:HUSKF, OTCQX:COSWF
- Earlier: Canadian oil sands price nears $20/bbl, cut in half since July 1
Thu, Aug. 13, 11:59 AM
- Even though nearly half of TransCanada's (TRP -1.7%) proposed $12B Energy East crude oil pipeline runs through Ontario, the Ontario Energy Board says the project would result in only "modest" economic benefits for the province.
- "Ontario consumers need to be assured that enough pipeline capacity and natural gas supply will be available to meet Ontario’s medium- and long-term needs, particularly in eastern Ontario," the OEB says in a new report.
Mon, Jun. 1, 11:59 AM
- TransCanada (TRP -1.8%) says it has reached project agreements with three more First Nations in British Columbia as part of efforts to build the Prince Rupert Gas Transmission pipeline across the province to a proposed liquefied natural gas terminal on the coast.
- TRP does not announce specifics but says they provide for annual legacy payments over the commercial life of the pipeline plus benefits upon signing and at other milestones.
- TRP already had reached four other First Nations agreements but members of the Lax Kw’alaams First Nation rejected a $1.15B offer from Petronas, which wants to build the Pacific Northwest LNG terminal on Lelu Island south of Prince Rupert.
Wed, May 6, 2:36 PM
- Canadian energy stocks are broadly lower after the shocking election result in Alberta raised questions about the future of the country's oil industry: SU -3.3%, ENB -2.8%, TRP -2.6%, IMO -2.3%, CNQ -2.3%, CVE -5.8%, OTCQB:HUSKF -1%, TCK -1.6%, TAC -4.1%, OTCQX:COSWF -6%.
- "Energy is such a critical issue to Alberta, I’m really not that concerned," ENB CEO Al Monaco says, but investors and analysts disagree.
- "It’s completely devastating" for energy companies and investors, saysCanoe Financial's Rafi Tahmazian of stated plans by the newly elected government to raise corporate taxes, review the government’s take of energy revenue, scale back advocacy for pipelines and phase out coal power more quickly.
- “If you are invested in energy stocks, you should be concerned,” says AltaCorp’s Jeremy McCrea, noting that drillers already face higher costs to extract oil and gas in Alberta than in many jurisdictions, so an increase in royalties would make the province even less competitive.
Wed, Mar. 18, 3:54 PM
- Canada's National Energy Board reportedly is investigating up to a dozen new allegations of gas pipeline safety code violations at TransCanada (TRP +1.9%).
- Documents reviewed by Reuters show the allegations include faulty or delayed repairs, sloppy welding work and a failure to report key issues to the regulator.
- It would mark the second time in recent years that Canada's energy regulator has investigated safety practices at the pipeline company following complaints by a whistleblower.
Tue, Feb. 3, 11:59 AM
- The EPA says developing the Keystone XL pipeline (TRP +2.9%) would “significantly increase” the greenhouse gas emissions from the oil sands, a conclusion environmental groups say gives Pres. Obama reason to reject the proposed pipeline.
- In a letter to the State Department, the EPA’s Cynthia Giles undercuts assurances that the pipeline would not have an impact on Canadian emissions, saying the State Department’s environmental impact analysis concludes the pipeline would result in as much as 27.4M metric tons of carbon dioxide equivalents per year, the same as emissions from 5.7M passenger vehicles.
- The Natural Resources Defense Council says the assessment means the pipeline fails the standard Obama has said he’ll use to judge the project.
Fri, Jan. 9, 10:05 AM
- The Nebraska Supreme Court issues a reversal of a lower court ruling that had blocked a route for the Keystone XL pipeline, leaving in place legislation that favored TransCanada's (TRP +3.2%) claim to build the pipeline across the state.
- The ruling ends the legal challenge to a Nebraska law that allowed the Republican governor to determine the route of the pipeline in the state.
- The project’s fate now returns to Pres. Obama, who has cited the lawsuit in deferring a decision on approving the project.
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