Canada’s TC Energy to spin off oil pipeline company

Canada

CALGARY, June 4, 2024 – Shareholders in Canada’s TC Energy have voted to spin off the company’s liquids pipeline business into a new entity that will own the Keystone oil pipeline, Reuters reported on Tuesday.

The newly established South Bow Corporation’s key asset will be the 622,000-bopd Keystone pipeline, an important export channel for Canadian oil. Its portfolio will cover a total of 4,900 kilometres of liquids pipelines bringing oil from Alberta and parts of the USA to refining markets in Illinois, Oklahoma and Texas.

“Spinning off South Bow will allow both companies to maximise the value of their respective assets,” the report quoted TC Energy CEO Francois Poirier as saying.

“Each company will have the ability to focus on their distinct strategies and opportunity sets.”

Photo of the Thornbury Pump Station in Alberta, part of the Grand Rapids Pipeline System, © TC Energy Corporation. All rights reserved.

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