TC Energy is now a pure-play natural gas and power infrastructure operator ideally positioned to capitalize on secular demand growth from multiple sources: surging LNG exports as global markets shift from coal to cleaner-burning natural gas, exponential data center electricity requirements driven by artificial intelligence and cloud computing expansion, and coal-to-gas conversions in power generation that are accelerating the clean energy transition following the strategic spinoff of its oil business as South Bow Corp.
These three growth drivers are projected to drive 75% of North America’s final energy consumption growth through 2035, placing these pipeline and power assets at the epicenter of the continent’s energy evolution.
TC ENERGY CORP. (Toronto symbol TRP; www.tcenergy.com) completed the spinoff of its oil pipeline business as publicly listed South Bow Corp. on October 1, 2024.
Currently, the company generates steady cash flow mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. It also owns gas pipelines in Mexico, and owns or invests in seven power plants in Canada and the U.S.
Gas pipelines now supply 90% of TC’s earnings, followed by its 48.3% stake in the Bruce Power nuclear power plant in Ontario (7%) and other power plants and investments (3%).
What’s more, rate-regulated operations supply 77% of TC’s earnings. It also gets 20% of its earnings from long-term (including take-or-pay) contracts with shippers, while other businesses account for the remaining 3%.
Meanwhile, the new liquefied natural gas (LNG) facility in Kitimat, B.C. recently shipped its first LNG cargo to a customer in Japan. Two more LNG plants should begin operating in the next few years.
Rising demand for LNG—along with Ottawa’s plan to streamline the construction of new infrastructure projects—bodes well for TC Energy. It built and operates the Coastal GasLink pipeline that supplies gas to the Kitimat facility and it will likely play a big role in connecting future LNG facilities with gas producers in Alberta and B.C.
What’s more, as mentioned, TC operates most of its pipelines under rate-regulated or take-or-pay contracts with gas producers. Those predictable cash flows cut the risk of these new projects.
TC targeted $8.5 billion worth of new projects in 2025. In all, it plans to spend $28 billion on new projects and upgrades through 2030.
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Those projects include the $3.8 billion U.S. Southeast Gateway pipeline. This 715-kilometre offshore pipeline will pump natural gas from existing lines in southeast Mexico. It should begin operating later this year. TC expects the project and its other operations in Mexico will eventually supply about 10% of its total earnings,
As well, the Bruce Power nuclear facility in Ontario—TC holds a share—has now entered a long-term deal with the province’s power regulator to refurbish six reactors on the site. These upgrades will extend the life of the facility to 2064. TC’s share of costs through 2028 is $4.9 billion.
These new assets and upgrades will help TC profit as new datacentres that specialize in artificial intelligence applications and the shift to electric-powered vehicles spur the long-term demand for more electricity.
As well, the company is spending $4 billion U.S. on new U.S. natural gas pipelines between 2025 and 2027. That will let it profit as American power producers convert more of their coal-fired plants to burn gas—there are currently 225 operating coal plants in the U.S., with over 25% of them set to retire by 2040.
TC Energy is expected to keep its dividend hikes coming
TC’s revenue in the quarter ended September 30, 2025, rose 10.3%, to $3.70 billion from $3.36 billion a year earlier.
Earnings fell 10.0%, to $805 million, or $0.77 a share, from $894 million, or $0.86 a share. Higher expenses, including for interest, held earnings back.
Due to the loss of the South Bow assets, TC cut your quarterly dividend by 14.3% starting with the January 2025 payment. But it then raised it 3.3% with the March 2025 payment, to $3.40 annually. The stock yields 4.5%. What’s more, new assets and rising earnings will let it increase that payment by between 3% and 5% annually.
Recommendation in Canadian Wealth Advisor: TC Energy Inc. is a buy.
