TC Energy sanctions C$6bn of gas projects as data-centre demand drives growth

TC Energy has approved roughly C$3bn ($2.1bn) of new in-corridor growth projects, bringing its 2026 sanctions total to about C$6bn at a weighted average build multiple of 6.5 times. The figure anchors a quarter in which the Calgary-based operator also lifted its 2026 EBITDA guidance and extended its forecast horizon to 2031.

The new approvals split across two US gas expansions and one Canadian project tied to LNG Canada's second phase.

What did TC Energy sanction in the US?

The largest item is the Crossroads Expansion, designed to add 1.4 billion cubic feet per day of capacity serving US Midwest power demand, including load from data centres. Estimated cost: $1.8bn.

The second is American Midwest, an expansion of the Northern Border system that will add 1 bcf/d. Its estimated total cost is $400m, with TC Energy's proportionate equity contribution at roughly $100m.

Both expansions carry an anticipated 2030 in-service date and are backed by long-term take-or-pay contracts — the contracting structure that converts capacity additions into contracted cash flow rather than merchant exposure. For Midwest power generators and data-centre developers, the message is straightforward: new firm gas supply arrives on a defined timeline.

What is happening on Coastal GasLink?

In Canada, TC Energy approved the C$4.9bn Coastal GasLink Phase 2 Expansion after LNG Canada and its joint venture participants reached a positive final investment decision.

The scope covers five compressor stations and facility changes that will raise firm transportation capacity by roughly 2 bcf/d, to around 4.5 bcf/d. Construction should begin in early 2027, with service anticipated in the early 2030s.

LNG Canada will lead construction, and the agreements limit Coastal GasLink LP's capital commitments and its exposure to construction cost and schedule risk. That allocation matters for practitioners tracking how the operator has restructured risk after Phase 1's well-publicised cost overruns.

Last month, TC Energy also closed an investment agreement granting five Indigenous communities an economic interest in the Coastal GasLink pipeline.

What did the quarter deliver financially?

For the three months ended 30 September 2026, TC Energy reported comparable earnings from continuing operations of C$1bn, or C$0.94 per common share, up from C$0.8bn, or C$0.77 per share, a year earlier.

Net income attributable to common shares rose to C$1bn, or C$0.98 per share, from C$0.8bn, or C$0.78 per share. Comparable EBITDA climbed to C$3bn from C$2.65bn in the third quarter of 2025.

President and CEO François Poirier framed the results around the company's integrated North American footprint. "TC Energy's 75th year continues to demonstrate the strength of our integrated North American footprint," Poirier said. "Through the first nine months of 2026, exceptional operational performance across our natural gas systems, constructive settlement outcomes and projects placed in service ahead of schedule and under budget have supported an increase to our 2026 comparable EBITDA outlook to C$11.8 to C$12bn."

How far does the guidance stretch?

TC Energy now expects 2027 comparable EBITDA of C$12.3bn to C$12.5bn and forecasts a five-year compound annual growth rate of 5 to 7%. Projected capital expenditures for 2026 sit at the lower end of C$6bn to C$6.5bn before adjustments for non-controlling interests.

The pattern for readers is consistent: contracted expansions on existing corridors, modest build multiples, and capex held inside guidance.

The watch items are the 2030 in-service dates on Crossroads and American Midwest, and LNG Canada's early-2030s Phase 2 startup that Coastal GasLink's 4.5 bcf/d must feed.