TransCanada aims for LNG

Article Excerpt

TRANSCANADA CORP. $53.78 (Toronto symbol TRP; Shares outstanding: 881.0 million; Market cap: $48.8 billion; TSINetwork Rating: Above Average; Dividend yield: 5.1%; www.transcanada.com) stands to gain from the decision by Royal Dutch Shell plc and its four partners to invest in a multibillion-dollar liquefied natural gas (LNG) project in Kitimat, B.C. The $40-billion LNG Canada plant will ship LNG to Asian markets like Japan and China. The B.C. location gives the project a big competitive edge—for example, LNG Canada will be able to send cargoes to Japan in about eight days versus 20 days from the U.S. Gulf Coast. TransCanada will now move forward with its $6.2-billion Coastal GasLink pipeline. This is a 670-kilometre conduit that will carry gas from northeastern B.C. to the LNG Canada terminal in Kitimat for export. The pipeline will have an initial capacity of 2.1 billion cubic feet a day. That’s equal to about a third of Canada’s total current gas demand. Coastal GasLink has all the necessary regulatory approvals and permits…