TransCanada Corporation

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TransCanada Corporation
Public
Traded as TSXTRP
NYSETRP
S&P/TSX 60 component
Industry Oil and gas
Electricity
Founded 1951
Headquarters TransCanada Tower, Calgary, Alberta, Canada
Area served
Canada
Mexico
United States
Key people
Russ Girling, President and CEO
Services Pipeline transport
Natural gas storage
Electricity Generation
Revenue IncreaseC$10.185 billion (2016)[1]
Increase C$124 million (2016)[1]
Total assets Increase C$ 88.051 billion (2016)[2]
Number of employees
7,200 [3]
Website transcanada.com

TransCanada Corporation is a major North American energy company, based in Calgary, Alberta in Canada, that develops and operates energy infrastructure in North America. Its pipeline network includes approximately 3,460 kilometres (2,150 miles) of oil pipeline, plus approximately 57,000 kilometres (35,418 miles) of wholly owned and 11,500 kilometres (7,146 miles) of partially owned gas pipeline that connects with virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with approximately 653 billion cubic feet (1.85×1010 m3) of storage capacity.[citation needed] TransCanada also owns, or has interests in, approximately 11,800 megawatts of power generation.[4]

TransCanada Tower, company head office in Calgary

TransCanada is the largest shareholder in, and owns the general partner of, TC PipeLines. The company was founded in 1951 in Calgary.[5] In January 2014, 46% of TransCanada's value was owned by institutional shareholders.[6]

Pipelines[edit]

Wholly owned pipelines:

Affiliated pipelines:

Keystone Pipeline[edit]

TransCanada maintains that people have public access to the pipeline, thus supporting criteria for eminent domain. "It's open for anyone to do business on our pipeline, we welcome business to our pipe." said TransCanada Media Relations Michael Barnes.[7]

Eminent Domain[edit]

In October 2011, TransCanada was involved in up to 56 separate eminent domain actions against landowners in Texas and South Dakota who refused to give permission to the company to build the Keystone Pipeline through their land.[8] However, on August 23, 2012, Texas Judge Bill Harris ruled that TransCanada had the right of eminent domain and could lease or purchase land from owners who refused to sign an agreement with the company for a public right of way for the pipeline.[citation needed] The landowners had said that the pipeline was not open to other companies, and so did not meet the criteria for eminent domain.[9]

Protests[edit]

On September 27, 2012, protesters began tree sitting in the path of the Keystone pipeline near Winnsboro, Texas. Eight people stood on tree platforms just ahead of where crews were cutting down trees to make way for the pipeline.[10]

On October 4, 2012, actress and activist Daryl Hannah and 78-year-old Texas landowner Eleanor Fairchild were arrested for criminal trespassing and other charges after they were accused of standing in front of TransCanada pipeline construction equipment on Fairchild's farm in Winnsboro, a town about 100 miles east of Dallas.[11] Ms. Fairchild had owned the land since 1983 and refused to sign any agreements with TransCanada. Her land was seized by eminent domain.

Spills[edit]

On April 2, 2016, a resident near Freeman, South Dakota observed a leak along the Keystone pipeline. The size and cause were not immediately known.[12]

On November 16, 2017, over 210,000 gallons of oil leaked from the pipeline in Marshall County, South Dakota, for 15 minutes before the flow of oil could be stopped.[13] TransCanada reported it discovered the leak in Amherst, South Dakota, at 6 a.m. on Thursday after systems detected a drop in pressure in the northern leg of the pipeline.[14] The leak was discovered about 35 miles south of the Ludden pump station.[15]

British Columbia gas export pipelines[edit]

As of June 2013 these projects remain subject to regulatory approval and licensing.[16][17]

In June 2012 it was announced that TransCanada was selected by Shell and partners Korea Gas Corporation, Mitsubishi Corporation and PetroChina Company Limited to design, build, own and operate[17] the Coastal GasLink pipeline between northeastern B.C. oil fields near Dawson Creek, British Columbia and an LNG export facility on the Douglas Channel near Kitimat, British Columbia.[18][19][20][21]

In January 2013 it was announced that TransCanada was selected by Petronas to design, build, own, and operate[16] the Prince Rupert Gas Transmission project, a gas pipeline that would transport natural gas from the Montney region near Fort St. John, British Columbia to a LNG terminal planned by Progress Energy Canada Ltd. in Port Edward, British Columbia on Lelu Island near Prince Rupert, British Columbia.[22]

TransCanada's existing NGTL system in northeastern B.C. will be expanded and integrated into the new export pipeline systems.[16][18]

Pipelines in Alberta[edit]

In late 2017 TransCanada had the largest and most extensive natural gas network in Alberta. It made changes to the priority it gives to firm-service customers and spot shippers, with their access sometimes now unavailable, started running out of storage. Some had to shut down.[23]

In October 2012, TransCanada formed a 50-50 CAD$3bn joint-venture with Phoenix Energy Holdings Ltd. (the Canadian subsidiary of PetroChina) to develop the 500 km Grand Rapids Pipeline.[24]

Power market[edit]

TransCanada also owns, or has interests in, approximately 11,800 megawatts of power generation.[4]

Economic withholding[edit]

Economic withholding is defined as the practice of submitting blocks of electricity at high, non-competitive prices that effectively reduces or withholds the quantity of supply offered at competitive prices. Generators "offer their available electricity to the market for dispatch on the grid" but they raise the price so high the electricity is not dispatched.[25] In this way economic withholding is "an exercise of market power" which intentionally raises prices above competitive levels.[26]:5

In Alberta, Canada, through the practice of economic withholding a single electricity provider drove up prices on four occasions in May and June, of 2015 during a period of surplus power supply.[25]

Power generators are required to offer their available electricity to the market for dispatch on the grid, but they can choose the price they want for it. If it is priced too high, it might not be dispatched.

— Darcy Henton Calgary Herald 5 September 2015

A single market participant, TransCanadaEnergy Ltd successfully withheld "much of its available power output on four occasions in May and June 2015 despite there being a surplus supply of power. In response to concerns about the spike in the price of electricity TransCanada's Davis Sheremata claimed that the company "applies our view of prevailing market fundamentals when offering power into the wholesale market."[25]

Proposed Oakville Generating Station[edit]

In June 2010, TransCanada was embroiled in a controversy surrounding a plan to construct a 975 MW gas-fired power plant on a disused 13.5-acre (5.5 ha) portion of Ford's Oakville, Ontario assembly plant. Local residents and politicians have expressed health and safety concerns to Ford in opposition to the plan.[citation needed]

Citing the 2010 gas-fired power-plant explosion plant in Middletown, Connecticut, U.S., and the 2008 Toronto propane explosion, Oakville MPP Kevin Flynn introduced a private member's bill that would require a 1500-meter buffer zone for such a plant, a proposal intended to effectively prevent the construction of this project.[27]

The proposed Oakville site was ultimately abandoned in response to political pressure; the station will instead be built on the Lennox Generating Station site west of Bath, Ontario.[28]

Power plants[edit]

Corporate governance[edit]

Members of the board of directors of TransCanada are S. Barry Jackson (Chair), Russ Girling (President and CEO), Kevin E. Benson, Derek Burney, John Richels, Paule Gauthier, Paula Rosput Reynolds, Mary Pat Salomone, W. Thomas Stephens, D. Michael G. Stewart and Richard E. Waugh.[30]

Sponsorships[edit]

In 2014, Transcanada sponsored the Grand Final event held in Edmonton, Alberta, Canada for the 2014 ITU World Triathlon Series.[31] In 2015 the company was a major sponsor for the 2015 World U-17 Hockey Challenge held in Dawson Creek and Fort St. John, British Columbia.[32] Transcanada committed $25,000 in sponsorship funding to assist the Michigan Department of Natural Resources in the maintenance of the Iron Belle Trail. The company adopted a 2 kilometres (1 mile) long stretch of the trail in Kalkaska County, Michigan near an ANR Pipeline facility.[33]

References[edit]

  1. ^ a b [1]
  2. ^ "TransCanada – Investors". www.transcanada.com. Retrieved 6 October 2017. 
  3. ^ [2]
  4. ^ a b "Loading". www.transcanada.com. Retrieved 6 October 2017. 
  5. ^ Kilbourn, William (1970). Pipeline: TransCanada and the Great Debate. p. 29. 
  6. ^ "TransCanada Corporation (TRP) Institutional Ownership & Holdings". NASDAQ.com. Retrieved 6 October 2017. 
  7. ^ Boyd, Matthew. "Lamar County landowner appeals TransCanada pipeline". Retrieved 6 October 2017. 
  8. ^ "Eminent Domain Fight Has a Canadian Twist". New York Times. Oct 17, 2011. 
  9. ^ "Keystone pipeline clears a hurdle". Washington Post. Aug 22, 2012. 
  10. ^ "Protesters in Texas climb trees to block pipeline work". Houston Chronicle. September 25, 2012. 
  11. ^ "Daryl Hannah freed following arrest in pipeline protest". Chicago Sun-Times. Oct 6, 2012. 
  12. ^ "TransCanada searching for source of spill". Retrieved 6 October 2017. 
  13. ^ "Crews cleaning up Keystone Pipeline leak in Marshall County". KSFY ABC. November 16, 2017. Retrieved November 16, 2017. 
  14. ^ "TransCanada's Keystone pipeline shut after 5,000-barrel leak in U.S". Reuters. November 16, 2017. Retrieved November 16, 2017. 
  15. ^ "Keystone Pipeline Leak: More Than 200,000 Gallons of Oil Spilled". Heavy.com. November 16, 2017. Retrieved November 16, 2017. 
  16. ^ a b c "TransCanada Selected to Develop $6 Billion in Natural Gas Infrastructure to Prince Rupert, British Columbia" (news release). TransCanada. January 9, 2013. Retrieved June 12, 2013. 
  17. ^ a b "TransCanada Selected by Shell and Partners to Develop Multi-Billion Dollar Natural Gas Pipeline to Canada's West Coast" (news release). TransCanada. June 5, 2012. Retrieved June 12, 2013. 
  18. ^ a b Lauren Krugel (January 9, 2013). "TransCanada to build $5-billion shale gas pipeline project near Prince Rupert" (blog). The Tyee. Retrieved June 12, 2013. 
  19. ^ "Home page". Coastal GasLink Pipeline Ltd., a wholly owned subsidiary of TransCanada PipeLines Limited. Retrieved June 12, 2013. Coastal GasLink Pipeline Ltd., a wholly owned subsidiary of TransCanada PipeLines Limited, proposes to develop a natural gas pipeline from northeast B.C. to the west coast of B.C. to serve export markets. 
  20. ^ Coastal GasLink Pipeline project description
  21. ^ Nathan VanderKlippe (June 5, 2012). "TransCanada wins $4-billion pipeline contract". The Globe and Mail. Retrieved June 12, 2013. 
  22. ^ Darren Campbell (January 9, 2013). "B.C. LNG exports take a step forward with TransCanada announcement: TCPL to build $5.1 billion pipeline that will feed coastal terminal". Alberta Oil Magazine. Retrieved June 12, 2013. 
  23. ^ Geoffrey Morgan (November 1, 2017). "TransCanada rule change raises ire of producers: Firms say limited access to storage, price swings are cramping operations". Vancouver Sun. Financial Post. p. B1. 
  24. ^ Editorial, Reuters. "${Instrument_CompanyName} ${Instrument_Ric} Key Developments - Reuters.com". U.S. Retrieved 6 October 2017. 
  25. ^ a b c Darcy Henton (5 September 2015). "Economic withholding goes under the microscope after spring power price spike". Calgary Herald. Edmonton, Alberta. Retrieved 6 September 2015. 
  26. ^ Economic withholding in the Alberta Energy Market (PDF). John F. Kennedy School of Government (Report). Market Development Power Pool. 1 March 2002. Retrieved 6 September 2015. 
  27. ^ Legislative Assembly of Ontario, Canada, Past & Present Bills and Lawmaking, 39:2 Bill 8, Separation Distances for Natural Gas Power Plants Act, 2010, Status
  28. ^ "Liberal deal to move Oakville gas-fired plant to Lennox will cost $40M". Financial Post. September 2012. Retrieved 2012-09-26. 
  29. ^ "Bécancour: 1 milliard $ pour une centrale au gaz... fermée". Retrieved 6 October 2017. 
  30. ^ "Board of Directors". Retrieved October 3, 2014. 
  31. ^ Butcher, Lucy (2014-03-03). "TransCanada to sponsor ITU Grand Final". SportsPro Media. Retrieved 2015-11-10. 
  32. ^ "Two Canadian teams go head-to-head in 2015 World Under-17 Hockey Challenge opener". Hockey Canada. 2015-09-09. Retrieved 2015-11-10. 
  33. ^ Tonc, Lauren (2015-09-15). "Adopting the Iron Belle Trail". Transcanada. Retrieved 2015-11-10. 

External links[edit]