About TC Energy

TC Energy Corporation operates as an energy infrastructure company in North America. The company’s business is made up of pipeline and storage assets that transport, store or deliver natural gas and crude oil, as well as power generation assets that produce electricity to support businesses and communities across the continent. The company’s business consists of natural gas and crude oil transportation, storage and delivery systems in addition to power generation assets that produce electricity. Strategy The company’s long-term strategy is driven by several key beliefs, such as natural gas will continue to play a pivotal role in North America's energy future; crude oil will remain an important part of the fuel mix; the need for renewables along with reliable, on-demand energy sources to support grid stability will grow significantly; and the value of existing infrastructure assets will become more valuable given the challenges to develop new greenfield, linear-energy infrastructure, in particular, pipelines. The key elements of the company’s strategy are to maximize the full-life value of the company’s infrastructure assets and commercial positions; commercially develop and build new asset investment programs; and cultivate a focused portfolio of high-quality development and investment options. Segments The company operates through three businesses – Natural Gas Pipelines, Liquids Pipelines, and Power and Storage. The company’s results are reflected in five segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage. Natural Gas Pipelines and Liquids Pipelines are principally consisted of the company’s respective natural gas and liquids pipelines in Canada, the U.S. and Mexico, as well as its regulated natural gas storage operations in the U.S. Power and Storage includes the company’s power operations and its unregulated natural gas storage business in Canada. Natural Gas Pipelines The company’s natural gas pipeline network transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, Liquefied natural gas (LNG) export terminals and other businesses across Canada, the U.S. and Mexico. In addition to its natural gas pipelines, the company has regulated natural gas storage facilities in the U.S. with a total working gas capacity of 535 Billion cubic feet (Bcf), making it one of the largest providers of natural gas storage and related services to key markets in North America. The company’s Natural Gas Pipelines business is split into three operating segments representing its geographic diversity: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines and Mexico Natural Gas Pipelines. Liquids Pipelines The company’s existing liquids pipelines infrastructure connects Alberta crude oil supplies to the U.S. refining markets in Illinois, Oklahoma and the U.S. Gulf Coast, as well as the U.S. crude oil supplies from the key market hub at Cushing, Oklahoma to the U.S. Gulf Coast. The company also provides intra-Alberta liquids transportation. Regulation Of Natural Gas Pipelines and Liquids Pipelines Canada Natural Gas Pipelines With the exception of Coastal GasLink (which is under construction), all of the company’s major Canadian natural gas pipeline systems are regulated by the Canada Energy Regulator (formerly the National Energy Board (Canada)) (CER) under the Canadian Energy Regulator Act. The NGTL System is operating under a five-year revenue requirement settlement for 2020-2024, which includes an incentive mechanism for certain operating costs and the opportunity to increase depreciation rates if tolls fall below specified levels. Coastal GasLink Pipeline Project The Coastal GasLink natural gas pipeline project is being developed primarily under the regulatory regime administered by the OGC and the BCEAO. The OGC is responsible for overseeing oil and gas operations in B.C., including exploration, development, pipeline transportation and reclamation. The BCEAO is an agency that manages the review of proposed major projects in B.C., as required by the B.C. Environmental Assessment Act. Liquids Pipelines The CER regulates the terms and conditions of service, including rates, construction and operation of the Canadian portion of the Keystone Pipeline System. The White Spruce and Grand Rapids pipelines are regulated by the AER. The AER regulates the construction and operation of pipelines and associated facilities in Alberta. United States Natural Gas Pipelines The company is subject to regulation by various federal, state and local governmental agencies, including those specifically described below. The company's wholly-owned and partially-owned U.S. pipelines and natural gas storage facilities are considered natural gas companies subject to the jurisdiction of the Federal Energy Regulatory Commission (U.S.) (FERC). The Natural Gas Act of 1938 grants the FERC authority over the construction, acquisition and operation of pipelines and related facilities utilized in the transportation and sale of natural gas in interstate commerce, including the extension, enlargement or abandonment of service using such facilities. The FERC also has authority to regulate rates and charges for transportation and storage of natural gas in interstate commerce. Pipeline safety is regulated by Pipeline and Hazardous Materials Safety Administration (PHMSA). Natural gas pipelines that cross the international border between Canada and the U.S., such as the Great Lakes Gas Transmission Limited Partnership (Great Lakes), GTN System and Portland Natural Gas Transmission System pipelines, require a Presidential Permit from the DOS. Liquids Pipelines The FERC regulates the terms and conditions of service, including transportation rates, of interstate liquids pipelines, including the U.S. portion of the Keystone Pipeline System and Marketlink. The siting and construction of pipeline facilities are regulated by the specific state regulator in which the pipeline facilities are located. Pipeline safety is regulated by PHMSA. Liquids pipelines that cross the international border between Canada and the U.S., such as the Keystone pipeline, require a Presidential Permit. Liquids pipeline projects that cross federal lands or waters of the U.S. require additional federal permits. Mexico Natural Gas Pipelines The company’s pipelines in Mexico are regulated by the Comisión Reguladora de Energía (CRE) who authorizes the transmission services of all gas pipeline infrastructure. Accordingly, the company’s Mexican pipelines have CRE-approved tariffs, services and related rates; however, the contracts underpinning the construction and operation of these facilities are long-term negotiated fixed-rate contracts. Power And Storage The company’s power business includes approximately 4,300 MW of generation capacity located in Alberta, Ontario, Québec and New Brunswick, using natural gas and nuclear fuel sources and is generally supported by long-term contracts. Additionally, the company is pursuing generation assets and PPA opportunities in Canada and the United States. The company owns and operates approximately 118 Bcf of non-regulated natural gas storage capacity in Alberta. Projects Under Development In addition to its secured projects, the company has a portfolio of projects that it is pursuing which are in varying stages of development. Canadian Natural Gas Pipelines The company continues to focus on optimizing the utilization and value of its existing Canadian Natural Gas Pipelines assets, including in-corridor expansions, providing connectivity to LNG export terminals and connections to growing shale gas supplies. Sustainability development projects will include additional compressor station electrification and waste heat capture power generation on its systems as well as other GHG abatement initiatives. U.S. Natural Gas Pipelines Delivery Market Projects Projects are in development that will replace, upgrade and modernize certain U.S. Natural Gas Pipelines facilities while reducing emissions along portions of the company’s pipeline systems’ principal delivery markets. The enhanced facilities are expected to improve reliability of the company’s systems and allow for additional contracted transportation services to address growing demand in the U.S. Midwest and the Mid-Atlantic regions under long-term contracts while reducing direct carbon dioxide equivalent (CO2e) emissions. Other Opportunities The company is pursuing a variety of projects, including compression replacement while furthering the electrification of its fleet, increasing capacity to LNG, power generation and local distribution companies (LDCs), expanding its modernization programs and in-corridor expansion opportunities on its existing system. These projects are expected to improve the reliability of its system with an environmental focus on cleaner energy. Mexico Natural Gas Pipelines The company is evaluating new growth projects driven by Mexico’s economic expansion and the need to connect natural gas to new regions of the country to serve power plants, industrial demand and LNG exports and, in doing so, reduce reliance on costly, carbon intensive fuel oil. Potential projects include a re-route of the central segment of Tula, as well as a new offshore pipeline that would connect additional natural gas supply to Southeast Mexico and capacity expansions on existing assets. Liquids Pipelines Grand Rapids Phase II Regulatory approvals have been obtained for Phase II of Grand Rapids, which consists of completing the 36-inch pipeline for crude oil service and converting the 20-inch pipeline from crude oil to diluent (a thinning agent made up of organic compounds. Used to dilute bitumen so it can be transported through pipelines) service. Commercial support is being pursued with prospective customers. Terminals Projects The company continues to pursue projects associated with its terminals in Alberta and the U.S. to expand its core business and add operational flexibility for its customers. Other Opportunities The company remains focused on maximizing the value of its liquids assets by expanding and leveraging its existing infrastructure and enhancing connectivity and service offerings to its customers. The company is pursuing selective growth opportunities to add incremental value to its Liquids Pipelines business and expansions that leverage available capacity on its existing infrastructure. Power and Storage Bruce Power Life Extension Program The continuation of Bruce Power’s life extension program through to 2033 will require the investment of the company’s proportionate share of Major Component Replacement (MCR) program costs on Units 3, 4, 5, 7 and 8, as well as the remaining Asset Management program costs, which continue beyond 2033. This program will extend the life of Units 3 to 8 and the Bruce Power site to 2064. The basis of estimate for the Unit 3 MCR was submitted to the IESO in December 2021 for a refurbishment outage expected to begin in first quarter 2023. Preparation work for the Unit 4 MCR is well underway and work for Unit 5, 7 and 8 MCRs have also begun. Future MCR investments will be subject to discrete decisions for each unit with specified off-ramps available to Bruce Power and the IESO. Uprate Initiative Bruce Power launched Project 2030 with the goal of achieving a site peak output of 7,000 MW by 2033 in support of climate change targets and future clean energy needs. Project 2030 will focus on continued asset optimization, innovation and leveraging new technology, which could include integration with storage and other forms of energy, to increase the site peak output at Bruce Power. Project 2030 is arranged in three stages with the first two stages fully approved for execution. Stage 1 started in 2019 and is expected to add 150 MW of output and Stage 2, beginning in early 2022, is targeting another 200 MW. Both stages are expected to increase output in multiple steps ending in 2033. Stage 3 requires Stage 1 and 2 to be complete and would enable an increase to the reactor power limit. Development-Stage Projects Ontario Pumped Storage The company continues to progress the development of the Ontario Pumped Storage project, an energy storage facility located near Meaford, Ontario that would provide 1,000 MW of flexible, clean energy to Ontario’s electricity system using a process known as pumped hydro storage. Saddlebrook Solar and Storage The company is proposing to construct and operate the Saddlebrook Solar and Storage project, a solar and energy storage solution, which consists of a solar-generating facility located in Aldersyde, Alberta that will operate in conjunction with a battery energy storage system. The proposed generating facility will produce approximately 81 MW of power and the battery storage system will provide up to 40 Megawatt hours (MWh) of energy storage capacity and is expected to reduce GHG emissions by approximately 115,000 tonnes per year. The proposed project is partially funded through Emissions Reduction Alberta’s Biotechnology, Electricity and Sustainable Transportation Challenge. The company expects to make a final investment decision on the project in 2022 with the first phases of commissioning beginning towards the end of 2022. Canyon Creek Pumped Storage The company acquired 100 per cent ownership of the Canyon Creek pumped storage development project in 2021. Once in service, the facility will have initial generating capacity of 75 MW, expandable through future development to 400 MW, and will utilize existing site infrastructure from a decommissioned coal mine. The facility will provide up to 37 hours of on-demand, flexible, clean energy and ancillary services to the Alberta electricity grid. The project has received the approval of the Alberta Utilities Commission and the required approval of the Alberta Government for hydro projects under the Hydro Development Act. The Canyon Creek Pumped Storage project is part of a larger product offering by us, a 24-by-7 carbon-free power product in the province of Alberta and includes output from other projects under construction or being developed. Renewable Energy Request for Information (RFI) In 2021, the company announced that it was seeking to identify potential contracts and/or investment opportunities in wind, solar and power storage renewable energy projects. The company requested up to 620 MW of wind energy projects, 300 MW of solar projects and 100 MW of energy storage projects to meet the electricity needs of the U.S. portion of the Keystone Pipeline System assets. The company also identified meaningful origination opportunities to supply renewable energy products and services to industrial and oil and gas sectors proximate to its in-corridor demand. Other Opportunities The company is building its customer-focused origination platform across North America, providing commodity products and energy services to help customers address the challenges of energy transition. The company’s existing network of assets, customers and suppliers provide a mutual opportunity in which it can tailor solutions to meet their clean energy needs. Other Energy Transition Developments The company continues to observe a reliance on the existing sources of natural gas, crude oil and electricity, for which it provides services to its customers. The company is targeting five focus areas to reduce the emissions intensity of its operations, while also capturing growth opportunities that meet the energy needs of the future, such as modernize its existing system and assets; decarbonize its energy consumption; drive digital solutions and technologies; leverage carbon credits and offsets; and invest in low-carbon energy and infrastructure, such as renewables along with emerging fuels and technology. Alberta Carbon Grid (ACG) On June 17, 2021, the company announced a partnership with Pembina Pipeline Corporation to jointly develop a world-scale carbon transportation and sequestration system which, when fully constructed, will be capable of transporting more than 20 million tonnes of carbon dioxide annually, thereby providing opportunities to retrofit existing assets and reduce its carbon footprint. By leveraging existing pipelines and a newly developed sequestration hub, the ACG is expected to provide an infrastructure platform for Alberta-based industries to manage their emissions and contribute to a lower-carbon economy. The company is pursuing opportunities to leverage its existing systems in support of hydrogen production and transportation. Irving Oil Decarbonization On August 12, 2021, the company signed an Memorandum of understanding (MOU) to explore the joint development of a series of proposed energy projects focused on reducing GHG emissions and creating new economic opportunities in New Brunswick and Atlantic Canada. Hydrogen Hubs The company has entered into two Joint Development Agreements (JDA), to support customer-driven hydrogen production for long-haul transportation, power generation, large industrials and heating customers across the United States and Canada. The first opportunity is a partnership with Nikola Corporation, a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles and related equipment, where Nikola will be a long-term anchor customer for hydrogen production infrastructure supporting hydrogen fueled zero-emission heavy-duty trucks. The JDA with Nikola supports co-development of large-scale green and blue hydrogen production hubs, utilizing its power and natural gas infrastructure. The company’s second customer-driven opportunity is a partnership with Hyzon Motors, a leader in fuel cell electric mobility for commercial vehicles, to develop hydrogen production facilities focused on zero-to-negative carbon intensity hydrogen from renewable natural gas, biogas and other sustainable sources. The facilities will be located close to demand, supporting Hyzon’s back-to-base vehicle deployments. This may include exploring the integration of pipeline assets to enable hydrogen distribution and storage via pipeline and/or to deliver carbon dioxide to permanent sequestration sites to decarbonize the hydrogen production process. Natural Gas Pipelines Business The company’s natural gas pipeline network transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals and other businesses across Canada, the U.S. and Mexico. The company’s network of pipelines taps into most major supply basins and transports over 25 per cent of continental daily natural gas needs through wholly-owned natural gas pipelines – 88,110 Kilometres (km) (54,748 miles); and partially-owned natural gas pipelines – 5,184 km (3,221 miles). In addition to its natural gas pipelines, the company has regulated natural gas storage facilities in the U.S. with a total working gas capacity of 535 Bcf, making it one of the largest providers of natural gas storage and related services to key markets in North America. The company’s Natural Gas Pipelines business is split into three operating segments representing its geographic diversity: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines and Mexico Natural Gas Pipelines. Strategy Optimize the value of the company’s existing natural gas pipeline systems in a safe and reliable manner, while responding to the changing flow patterns of natural gas in North America. The company also pursues new pipeline opportunities to add incremental value to its business. The company’s key areas of focus include primarily in-corridor expansion and extension of its existing significant North American natural gas pipeline footprint; connections to new and growing industrial and electric power generation markets and LDCs; expanding its systems in key locations and developing new projects to provide connectivity to LNG export terminals, both operating and proposed, in Canada, the U.S. and Mexico; connections to growing Canadian and U.S. shale gas and other supplies; and decarbonizing its energy consumption, thereby reducing overall GHG intensity. Each of these areas plays a critical role in meeting the transportation requirements for supply of and demand for natural gas in North America. The company’s natural gas pipeline systems are enabling energy transition. Natural gas is a reliable, high-efficiency energy source that is displacing coal-fired power while backstopping the intermittency of renewable power sources across North America. Natural Gas Pipelines Business Natural gas pipelines move natural gas from major sources of supply to locations or markets that use natural gas to meet their energy needs. The company’s natural gas pipelines business builds, owns and operates a network of natural gas pipelines across North America that connects gas production to interconnects, end-use markets and LNG export terminals. The network includes underground pipelines that transport natural gas predominantly under high pressure, compressor stations that act like pumps to move large volumes of natural gas along the pipeline, meter stations that record the amount of natural gas coming on the network at receipt locations and leaving the network at delivery locations and regulated natural gas storage facilities that provide services to customers and help maintain the overall balance of the pipeline systems. Canadian Natural Gas Pipelines NGTL System: This is the company’s natural gas gathering and transportation system for the Western Canadian Sedimentary basin (WCSB), connecting most of the natural gas production in western Canada to domestic and export markets. The company is positioned to connect growing supply in northeast British Columbia and northwest Alberta. The company’s capital program for new pipeline facilities is driven by these two supply areas, along with growing demand for intra-Alberta firm transportation for electric power generation conversion from coal, oil sands development and petro-chemical feedstock, as well as to its major export points at the Empress (a major delivery/receipt point for natural gas near the Alberta/Saskatchewan border) and Alberta/British Columbia delivery locations. The NGTL System is also well positioned to connect WCSB supply to LNG export facilities on the Canadian west coast, through future extensions of the system or future connections to other pipelines serving that area. Canadian Mainline: This pipeline supplies markets in Ontario, Québec, the Canadian Maritimes, as well as the Midwest and Northeast U.S. from the WCSB and, through interconnects, from the Appalachian basin. U.S. Natural Gas Pipelines Columbia Gas: This is the company’s natural gas transportation system for the Appalachian basin, which contains the Marcellus and Utica shale plays, two of the largest natural gas shale plays in North America. Similar to the company’s footprint in the WCSB, its Columbia Gas assets are well positioned to connect growing supply to markets in this area. This system also interconnects with other pipelines that provide access to key markets in the U.S. Northeast, the Midwest, the Atlantic coast and south to the Gulf of Mexico and its growing demand for natural gas to serve LNG exports. ANR: This pipeline system connects supply basins and markets throughout the U.S. Midwest and south to the Gulf of Mexico. This includes connecting supply in Texas, Oklahoma, the Appalachian basin and the Gulf of Mexico to markets in Wisconsin, Michigan, Illinois and Ohio. In addition, ANR has bidirectional capability on its Southeast Mainline and delivers gas produced from the Appalachian basin to customers throughout the U.S. Gulf Coast region. Columbia Gulf: This pipeline system transports growing Appalachian basin supplies to various U.S. Gulf Coast markets and LNG export terminals from its interconnections with Columbia Gas and other pipelines. Other U.S. Natural Gas Pipelines: The company has ownership interests in eight wholly-owned or partially-owned natural gas pipelines serving major markets in the U.S. that were previously held by its subsidiary, TC PipeLines, LP. On March 3, 2021, the company completed the acquisition of all of the outstanding common units of TC PipeLines, LP not beneficially owned by the company, in exchange for common shares, resulting in TC PipeLines, LP becoming an indirect, wholly-owned subsidiary of the company, thereby increasing its effective ownership in the TC PipeLines, LP assets. Mexico Natural Gas Pipelines Sur de Texas: This offshore pipeline transports natural gas from Texas to power and industrial markets in the eastern and central regions of Mexico. The average volumes transported by this pipeline in 2021 supplied approximately 15 per cent of Mexico's total natural gas imports via pipelines. The company owns a 60 per cent interest in and are the operator of this pipeline. Northwest System: The Topolobampo and Mazatlán pipelines make up the company’s Mexico northwest system. The system runs through the states of Chihuahua and Sinaloa, supplying power plants and industrial facilities, bringing natural gas to a region of the country that previously did not have access to it. TGNH System: This system is located in the central region of Mexico and is comprised of the existing Tamazunchale pipeline and the Tula and Villa de Reyes pipelines under construction. This system supplies, or will supply, several power plants and industrial facilities in Veracruz, San Luis Potosí, Querétaro and Hidalgo. It has interconnects with upstream pipelines that bring in supply from the Agua Dulce and Waha basins in Texas. Guadalajara: This bidirectional pipeline connects imported LNG supply near Manzanillo and continental gas supply near Guadalajara to power plants and industrial customers in the states of Colima and Jalisco. Regulation of Tolls and Cost Recovery The company’s natural gas pipelines are generally regulated by the Canada Energy Regulator (formerly the National Energy Board (Canada)) (CER) in Canada, Federal Energy Regulatory Commission (U.S.) (FERC) in the U.S. and CRE in Mexico. These entities regulate the construction, operation and requested abandonment of pipeline infrastructure. Business Environment and Strategic Priorities The company has significant pipeline footprints that serve two of the most prolific supply regions of North America – the WCSB and the Appalachian basin. The company’s pipelines also source natural gas from other significant basins including the Rockies, Williston, Haynesville, Fayetteville and Anadarko basins, as well as the Gulf of Mexico. Strategic Priorities The company’s pipelines deliver the natural gas that millions of individuals and businesses across North America rely on for their energy needs. The company focuses on adapting its existing assets to changing natural gas flow dynamics and supporting its corporate-level sustainability goals and ESG (environmental, social and governance) targets, including greenhouse gas (GHG) intensity reduction. The company is the operator of all of the following natural gas pipelines and regulated natural gas storage assets except for Iroquois. Canadian Natural Gas Pipelines Segment The Canadian natural gas pipeline business is subject to regulation by various federal and provincial governmental agencies. The CER has jurisdiction over the company’s regulated Canadian natural gas interprovincial pipeline systems, while provincial regulators have jurisdiction over pipeline systems operating entirely within a single province. All of the company’s major Canadian natural gas pipeline assets are regulated by the CER with the exception of Coastal GasLink, which is currently under construction. The company and its shippers can also establish settlement arrangements, subject to approval by the CER that may have elements that vary from the typical toll-setting process. Settlements can include longer terms and mechanisms, such as incentive agreements that can have an impact on the actual return on equity achieved. Examples include fixing the Operating, maintenance and administration (OM&A) component in determining revenue requirements, where variances are to the pipeline's account or shared between the pipeline and shippers. Significant Events Coastal GasLink Pipeline Project Coastal GasLink is a pipeline under construction that will have an initial capacity of approximately 2.2 Petajoule per day (PJ/d) (2.1 Bcf/d) and will deliver natural gas from the Dawson Creek area to a natural gas liquefaction facility near Kitimat, British Columbia. The LNG facility, which is owned by LNG Canada, is under construction. Transportation service on the pipeline is underpinned by 25-year Transportation Service Agreements (TSAs) (with additional renewal provisions) with each of the five LNG Canada participants. The company holds a 35 per cent ownership interest in Coastal GasLink LP and have been contracted to develop and operate the pipeline. The project is more than 59 per cent complete. The entire route has been cleared, grading is more than 70 per cent complete and more than 240 km (149 miles) of pipeline has been installed, with reclamation activities underway in many areas. NGTL System 2022 NGTL System Expansion Program In 2021, the company received regulatory approval for the 2022 NGTL System Expansion Program.The 2022 NGTL System Expansion Program consists of approximately 166 km (103 miles) of new pipeline, one new compressor unit and associated facilities and will provide incremental capacity of approximately 773 Terajoule per day (TJ/d) (722 MMcf/d) (Million cubic feet per day) to meet firm-receipt and intra-basin delivery requirements with eight-year terms. Construction activities began in September 2021 with anticipated in-service dates commencing in fourth quarter 2022. 2023 NGTL System Intra-Basin Expansion In 2021, the company received regulatory approval to construct and operate the NGTL System Intra-Basin Expansion Program, consisting of 23 km (14 miles) of new pipeline and two new compressor stations and is underpinned by approximately 255 TJ/d (238 MMcf/d) of new firm-service contracts with 15-year terms. The NGTL System Intra-Basin Expansion is expected to be placed in service commencing in 2023. NGTL System/Foothills West Path Delivery Program In 2019, the company announced its West Path Delivery Program, which is an expansion of the NGTL System and Foothills for contracted incremental export capacity on Gas Transmission Northwest (GTN). U.S. Natural Gas Pipelines The U.S. interstate natural gas pipeline business is subject to regulation by various federal, state and local governmental agencies. FERC, however, has comprehensive jurisdiction over the company’s the U.S. natural gas business. PHMSA Compliance Regulation Most of the company’s the U.S. natural gas pipeline systems are subject to federal pipeline safety statutes and regulations enacted and administered by PHMSA. TC PipeLines, LP On March 3, 2021, the company completed the acquisition of all of the outstanding common units of TC PipeLines, LP. TC PipeLines, LP has ownership interests in the GTN, Northern Border, Bison, Great Lakes, North Baja, Tuscarora, Iroquois and Portland pipeline systems. Mexico Natural Gas Pipelines The company’s Mexico pipelines have approved tariffs, services and related rates for other potential users. Liquids Pipelines The company’s existing liquids pipelines infrastructure connects Alberta crude oil supplies to the U.S. refining markets in Illinois, Oklahoma and the U.S. Gulf Coast as well as the U.S. crude oil supplies from the key market hub at Cushing, Oklahoma to the U.S. Gulf Coast. The company also provides intra-Alberta liquids transportation. The company’s Liquids Pipelines business includes wholly-owned liquids pipelines – approximately 4,400 km (2,700 miles); wholly-owned operational and term storage – approximately 7 million barrels; and partially-owned liquids pipelines – over 460 km (290 miles). Strategy The company pursues emerging growth opportunities to add incremental value to its business. In support of the company’s GHG emissions reduction targets, it is taking significant steps to source renewable power for its operations. The strategy addresses scope two emissions, which are primarily generated by the consumption of electricity used to power the company’s liquids pipelines. Liquids Pipelines Business The company’s Liquids Pipelines segment consists of crude oil and liquids/petroleum products pipelines, complemented by a liquids marketing business. The company efficiently transports crude oil from major supply sources to markets where crude oil can be refined into various petroleum products, and offer ancillary services, such as short- and long-term storage of liquids at key terminal locations to offer its customers delivery flexibility while optimizing the value of its pipeline assets. The company provides pipeline transportation capacity to customers predominantly supported by long-term contracts with fixed monthly payments that are not linked to actual throughput volumes or to the price of the commodity, generating stable earnings over the contract term. The Keystone Pipeline System, the company’s largest liquids pipeline asset, transports approximately 20 per cent of the U.S. Midwest and the U.S. Gulf Coast refiners' demand for Canadian crude oil. It also provides significant capacity between Cushing, Oklahoma and the U.S. Gulf Coast market, primarily transporting the U.S. crude oil. The company’s two intra-Alberta liquids pipelines – Grand Rapids and White Spruce – provide crude oil transportation for producers in northern Alberta. The company’s liquids marketing business provides customers with a variety of crude oil marketing services, including transportation, storage and crude oil management, largely through the purchase and sale of physical crude oil. This business contracts for capacity on the company’s pipelines, as well as third-party owned pipelines and tank terminals. Strategic Priorities The company’s intra-Alberta liquids pipelines and the Keystone Pipeline System strategically position it to provide competitive transportation solutions for growing supplies of Alberta heavy crude oil and U.S. light tight oil to the U.S. Midwest and the U.S. Gulf Coast. Power and Storage The company’s power business includes approximately 4,300 Megawatt(s) (MW) of generation capacity located in Alberta, Ontario, Québec and New Brunswick, using natural gas and nuclear fuel sources and is generally supported by long-term contracts. Additionally, the company is pursuing generation assets and Power purchase arrangement (PPA) opportunities in Canada and the United States. The company owns and operates approximately 118 Bcf of non-regulated natural gas storage capacity in Alberta. Strategy The company’s strategy is to leverage its competitive footprint as a platform to grow its power business and enhance the life cycle and reliability of its assets, all driven by internal and external customer needs. The company’s Power and Storage business is made up of two groups, Power and Natural Gas Storage (Canadian, non-regulated). Power Canadian Power The company owns or has the rights to approximately 1,100 MW of power supply in Canada, excluding its investment in Bruce Power. In Alberta the company owns four natural gas-fired cogeneration facilities (facilities that produce both electricity and useful heat at the same time) and exercise a disciplined operating strategy to maximize revenues. Bruce Power Bruce Power is a nuclear power generation facility located near Tiverton, Ontario and consist of eight nuclear units with a combined capacity of approximately 6,550 MW. The company holds a 48.4 per cent ownership interest in Bruce Power. Through a long-term agreement with the Independent Electricity System Operator (Ontario) (IESO), Bruce Power has begun to progress a series of incremental life-extension investments to extend the operating life of the facility to 2064. The MCR program is designed to add 30 to 35 years of operational life to each of the six units. The Unit 6 MCR is the first of the six-unit MCR life extension program. This outage commenced in January 2020 and is expected to be completed on schedule and on budget. The second unit in the MCR program is Unit 3 and the final cost and schedule duration estimate for Unit 3 was submitted to the IESO in December 2021. The Unit 3 MCR is scheduled to proceed in 2023 and has an expected completion in 2026. Investments in the remaining four units' MCR programs are expected to continue through 2033. Bruce Power is a global supplier of Cobalt-60, a medical isotope used in the sterilization of medical equipment and to treat certain types of cancer. Cobalt-60 is produced during Bruce Power’s generation of electricity, harvested during certain planned maintenance outages and provided for medical use in the treatment of brain tumours and breast cancer. In addition, Bruce Power continues to advance a project to expand isotope production from its reactors with a focus on Lutetium-177, another medical isotope used in the treatment of prostate cancer and neuroendocrine tumors. This project is being undertaken with a Canadian-based nuclear medicine partnership and the Saugeen Ojibway Nation, on whose traditional territory the Bruce Power facilities are located. U.S. Power The company’s U.S. power and emissions commercial trading and marketing business provides its customers with various physical and financial products with a measured approach to its risk management and a focus on financial discipline, compliance and operational excellence. Power Purchase Agreements The company has secured approximately 400 MW of wind and solar generation PPAs and associated environmental attributes in Alberta as of December 31, 2021. Canadian Natural Gas Storage The company owns and operates 118 Bcf of non-regulated natural gas storage capacity in Alberta. This business operates independently from its regulated natural gas transmission and the U.S. storage businesses. Significant Events Sharp Hills Wind Power Purchase Agreement On September 20, 2021, the company executed a 15-year PPA for 100 per cent of the power produced and the rights to all environmental attributes from the 297 MW Sharp Hills Wind Farm located in eastern Alberta. The Sharp Hills Wind Farm is anticipated to be operational in 2023, subject to customary regulatory approvals and conditions. Renewable Energy Request for Information Through an RFI process in 2021, the company announced that it is seeking to identify potential contracts and/or investment opportunities in up to 620 MW of wind energy projects, 300 MW of solar projects and 100 MW of energy storage projects to meet the electricity needs of the U.S. portion of the Keystone Pipeline System assets. Significant Events Alberta Carbon Grid On June 17, 2021, the company announced a partnership with Pembina Pipeline Corporation to jointly develop a world-scale carbon transportation and sequestration system which, when fully constructed, will be capable of transporting more than 20 million tonnes of carbon dioxide annually. Hydrogen Hubs The company has entered into two JDAs, to support customer-driven hydrogen production for long-haul transportation, power generation, large industrials and heating customers across the United States and Canada. The first opportunity is a partnership with Nikola Corporation, a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles and related equipment, where Nikola will be a long-term anchor customer for hydrogen production infrastructure supporting hydrogen fueled zero-emission heavy-duty trucks. The JDA with Nikola supports co-development of large-scale green and blue hydrogen production hubs, utilizing the company’s power and natural gas infrastructure. The company’s second customer-driven opportunity is a partnership with Hyzon Motors, a leader in fuel cell electric mobility for commercial vehicles, to develop hydrogen production facilities focused on zero-to-negative carbon intensity hydrogen from renewable natural gas, biogas and other sustainable sources. Acquisition of Common Units of TC PipeLines, LP On March 3, 2021, the company completed the acquisition of TC PipeLines, LP not beneficially owned by it, resulting in TC PipeLines, LP becoming an indirect, wholly-owned subsidiary of the company. History The company was founded in 1951. It was incorporated in 1951. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in 2019.