Jul 05 2017

Stronger together – celebrating one year anniversary of CPG acquisition

Posted by David Dodson

July marks one year since TransCanada and Columbia Pipeline Group joined forces to form one of the largest energy infrastructure companies in North America.

“Bringing these companies together truly has made us stronger,” President and CEO Russ Girling said in a new video commemorating the anniversary. “It’s not just the financial performance but the construction performance, operating performance, safety performance – all the things that are important and core to us.”

The move made TransCanada a genuine powerhouse in North America. Upon completion of the portfolio of pipeline projects Columbia brought to the table, TransCanada’s stature in energy infrastructure will be world-class.

“Once we’re done, we’ll be the only company in North America that can move a molecule of gas right from Northern Alberta through the Midwest and to the Gulf Coast and into Mexico City. We truly are the North American natural gas transmission company,” Girling said. “We are now moving one in every four molecules (of gas) that crosses this continent, and we are an extremely important part of the economic fabric of Canada, Mexico and the United States.”

Girling said TransCanada employees can be proud of their role in “keeping the lights on” across the continent.

And we’re not done yet.

“When you look forward 20 months from today and we end our project build-out in November of 2018, we're going to double the size of this company again to almost $16 billion in rate base,” added Stan Chapman, Executive Vice President and President, U.S. Natural Gas Pipelines. “That means that we have the right assets in the right place at the right time.”

Acquisition Timeline
  • March 17, 2016, TransCanada and Columbia Pipeline Group go public with plan to merge their two companies
  • June 22, 2016, CPG shareholders approve TransCanada’s acquisition of CPG with 95% favorable vote
  • July 1, 2016, TransCanada acquires CPG and its assets for a total of US$13 billion

TransCanada’s natural gas portfolio before acquisition

  • Operated more than 67,000 kilometres (42,000 miles) of pipeline
  • 368 billion cubic feet of storage capacity

CPG before acqisition

  • Operated 24,000 kilometres (15,000 miles) natural gas pipelines extending from New York to the Gulf of Mexico, with a significant presence in the Appalachia shale-gas basins
  • 294 billion cubic feet of storage capacity

After acquisition

  • TransCanada's natural gas pipelines assets grew by almost 40 per cent
  • Size of TransCanada's near-term project portfolio grew by 50 per cent, adding US$7 billion in Columbia projects
  • In total, 91,000-kilometre (57,000-mile) natural gas pipeline system
  • Combined portfolio of $23 billion in near-term projects secured by cost-of-service regulation and long-term contracts