TC Energy has sanctioned an expansion of the massive ANR natural gas pipeline system, driving supplies into a Midwest region experiencing rapid development of AI data centers.

“We have been working towards a meaningful announcement relating to data centers for some time, and today, we have sanctioned our Northwoods project,” said François Poirier, TC Energy CEO, during the company’s earnings call on May 1.

The $900 million project will add about 400 MMcf/d of natural gas capacity to the ANR system. The new capacity is 100% contracted for 20 years and is expected to go into service in 2029.

The ANR system is one of the largest interstate natural gas pipeline systems in the U.S. and already has a peak capacity of more than 10 Bcf/d. The network has access to several production basins in North America and transports natural gas from Texas, Oklahoma and Louisiana to Wisconsin, Michigan, Illinois and Ohio. The system also provides access to TC Energy’s storage operations in Michigan.

Ohio has become a hot spot for data center development. On May 6, Williams Cos. announced it had fully contracted all power capacity of its Socrates project, a behind-the-meter, gas-fired generating system located near Columbus, Ohio.

Poirier said that TC Energy will use the Northwoods expansion as a model for future projects.

“When we think about our strategy, particularly in the U.S., we are focused on serving the data center load through our existing utility systems and leveraging our footprints to do that,” he said. “So, brownfield in corridor, permittable, constructible projects are where we’re focused.” 

The expansion will consist primarily of looping the existing network and increasing compression, the company said.

Complete in Mexico

TC Energy also announced the completion of construction for its Southeast Gateway project in Mexico. The company said the $3.9 billion project came in at 13% under budget.

The company began construction on the project in 2022. The Southeast Gateway consists of 444 miles of natural gas transport lines in different regions of Mexico. The new lines are built to support the operations of 10 new gas-fired power plants, which Mexico’s Ministry of Energy expects to build and have in service by 2030.

Comments