Canadian pipeline operator TC Energy is forecasting an uptick in capital project announcements later this year and into next, as coal-to-gas conversions and data center growth drive natural gas demand in North America.

The company, which last year spun off its oil pipeline business to pursue a natural gas-focused strategy, is bullish on its outlook as North American power consumption is forecast to rise to record highs.

The growing demand for electricity from data centers dedicated to artificial intelligence and cryptocurrency is in particular creating opportunities for energy companies.

Calgary-based TC said on May 1 that the current slate of new project opportunities is among the most robust it has seen in decades.

Over the past six months, it has sanctioned approximately CA$4 billion (US$2.9 billion) of new capital projects. CEO François Poirier said TC expects an "increased cadence" of project announcements in the second half of 2025 and into 2026.

"Our guidance to you around the cadence of additional projects is not just based on a macro backdrop, it's based on a series of specific projects in which we are in the late stages of negotiations and development," Poirier said on a conference call with analysts.

TC Energy, which remains bullish on power demand growth, announced on Thursday new natural gas and nuclear electricity generation projects worth CA$2.4 billion (US$1.73 billion).

The company is maintaining its previously forecast guidance for between CA$5.5 billion and CA$6 billion (US$3.97 billion- US$4.33 billion) in net capital spending in 2025.

It has forecasted natural gas demand in North America to grow by 40 Bcf/d over the next decade.

TC Energy — which operates natural gas pipelines in Canada, the U.S. and Mexico — sees its greatest opportunity in the U.S., where it has a significant presence in jurisdictions like the U.S. Midwest and Virginia, where there are large clusters of data centers under development.

It is also keen to provide natural gas to Canada's fledgling liquefied natural gas industry, having built the Coastal GasLink pipeline to supply LNG Canada. It has the ability to expand capacity through the addition of compressor stations if the second phase of development at LNG Canada's export terminal site near Kitimat, British Colombia goes ahead.

Poirier said he is hopeful that in the aftermath of Canada's federal election earlier this week, Prime Minister Mark Carney will fulfill his campaign trail promise to speed up approvals for energy projects.

TC Energy missed analysts' estimates for first-quarter profit on weakness in its power and energy solutions business, while higher interest expenses offset gains in its natural gas operations.

Adjusted core profit for the company's power and energy solutions business fell 30% to CA$224 million (~US$161 million) in the first quarter, hurt by a unit of the Bruce Power nuclear reactor going offline for repairs.

Bruce Power, partly owned by TC Energy, supplies 30% of Ontario's electricity.

On an adjusted basis, TC Energy earned CA$0.95 (US$0.69) per share for the three months ended March 31, compared with analysts' average expectation of CA$0.97 (US$0.70), according to data compiled by LSEG.

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