TRP gets set for LNG exports

Article Excerpt

TRANSCANADA CORP. $49.92 (Toronto symbol TRP; Shares outstanding: 708.9 million; Market cap: $35.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.2%; www.transcanada.com) expects to start building a 900-kilometre pipeline in the next few months to pump natural gas from northeastern B.C.’s Montney region to a planned liquefied natural gas (LNG) terminal near Prince Rupert, B.C. This terminal, owned by a consortium led by Malaysian energy company Petronas, will convert the gas to a liquid. Tankers will then ship it to Asian markets. TransCanada will spend $5 billion on this pipeline. The LNG terminal still needs certain environmental and regulatory approvals, but TransCanada expects to have the line ready by 2020. Separately, regulators have approved the company’s proposed North Montney Mainline pipeline, which would pump gas from Montney to existing lines in Alberta and connect with the Prince Rupert LNG project. This $1.7-billion project could start up in 2019. TransCanada is a buy. buy…