TC Energy is spinning off its liquids pipelines, principally its Keystone/Marketlink system, into a separate, yet to be named company. The move comes 18 years after the natural gas pipeline giant decided to get into oil pipelines, and this spinoff marks its exist from that market.
The spinoff, announced July 27, also comes after more than a decade of battles to get two major oil pipelines built – Keystone XL and Energy East. Both of those projects failed disastrously, especially when it came to more than a billion dollars of charges for each project. For KXL, it was a $2.2 billion writedown, and for Energy East, a billion.