TC Energy Corp has appointed industry leader Hal Kvisle as the Chair of its new liquids pipeline company’s board of directors.
TC Energy plans to separate into two independent, investment-grade, publicly listed companies through the spinoff of its liquids pipelines business, which it expects to be completed on a tax-free basis in the second half of 2024.
According to a news release Thursday from the company, Kvisle has immense chair and director experience from his service on the board of directors of companies, including Cenovus Energy, ARC Resources Ltd., Finning International Inc., Bank of Montreal, and Talisman Energy Inc.
From 2001 to 2010, Kvisle was President and Chief Executive Officer of TransCanada Corporation, now TC Energy. Before joining the company, in 1999, he was the President of Fletcher Challenge Energy Canada Inc. Previously, he held engineering, finance, and management positions with Dome Petroleum Limited. Kvisle has worked in the oil and gas industry since 1975 and in the utilities and power industries since 1999, according to the release.
A special committee of TC Energy’s board engaged an executive search firm to identify and evaluate candidates for the role, the company said.
“Hal is an inspiring and seasoned leader with extensive industry experience and intimate knowledge of TC Energy’s highly competitive North American liquids system”, TC Energy Chair Siim Vanaselja, said. “With his visionary leadership and strategic insights, I am confident Hal’s prudent decision-making and counsel will help position the new company for long-term success”.
“I am honored to be named as Chair of the Board of Directors and look forward to working closely with the management team to deliver superior and enduring shareholder value”, Kvisle said in the release. “The new company has a tremendous runway of opportunities ahead. This is a critical time to maximize the value of these highly strategic assets that safely transport secure supply to the highest demand markets”.
In July, TC Energy announced plans to spin off its liquid pipelines business after a two-year strategic review, saying it can “better execute” business opportunities with two separate entities. The spinoff will result in two independent publicly listed companies, and will “unlock shareholder value by providing both companies with the flexibility to pursue their own growth objectives through disciplined capital allocation, enhancing efficiencies and driving operational excellence”, the Canada-based company said in an earlier news release.
The new liquids pipelines company will focus on “enhancing the value of its unrivaled asset base by increasing capacity on underutilized portions of the system and increasing connectivity to additional receipt and delivery points”, TC Energy said. After the spinoff is completed, TC Energy will focus on natural gas infrastructure and energy solutions, while being “driven by nuclear, pumped hydro energy storage and new energy opportunities”.
Earlier in the month, TC Energy completed the sale of a 40 percent non-controlling equity interest in its Columbia Gas Transmission, LLC and Columbia Gulf Transmission, LLC systems to Global Infrastructure Partners (GIP) for total cash proceeds of $3.9 billion (CAD 5.3 billion).
TC Energy will continue to operate the systems, focusing on maximizing value through safe operations, reliability of service, and operational excellence, the company said in a separate news release. Moving forward, GIP will fund its 40 percent share of Columbia Gas’ and Columbia Gulf’s gross capital expenditures. Total gross capital expenditures for these assets are expected to average more than $1 billion (CAD 1.3 billion) annually over the next three years, TC Energy said.
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