Topic: How To Invest

The Successful Investor Hotline – Friday, July 28, 2017

Article Excerpt

TRANSCANADA CORP., $63.50, Toronto symbol TRP, operates a 91,500-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,300 kilometers of crude oil pipelines and power plants in Canada and the U.S. In 2013, the company announced a plan to build a 900-kilometre pipeline to pump natural gas from northeastern B.C. to a proposed liquefied natural gas (LNG) terminal near Prince Rupert, B.C. From there, tankers would ship the LNG to markets in Asia. This week, the company that planned to build the LNG plant—Malaysia’s Petronas—scrapped the project due to increasing competition from producers in Australia and the U.S. Under the terms of its original deal, Petronas will reimburse TransCanada for the funds it has already spent on the project. The company has yet to reveal how much it will receive. TransCanada must now decide whether to proceed with the Prince Rupert pipeline. Even without Petronas, it still has long-term (20-year) contracts with 10 gas…