The glitzy newborns
If any project is going to steal Keystone’s spotlight, its TransCanda’s Prince Rupert Gas Transmission Project and the Coastal GasLink Project. The proposed pipelines will be used to transport natural gas from the emerging gas plays in Alberta to the proposed Pacific Northwest LNG and Kitimat LNG facilities. Prince Rupert LNG, owned by Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) and Progress Energy, Inc. (NYSE:PGN), and Kitimat LNG, owned by Chevron Corporation (NYSE:CVX) and Apache Corporation (NYSE:APA), look to jump into the LNG export business by servicing the Asia-Pacific markets. The two pipelines will cost the company about $9 billion for the two projects and anticipates each project to be completed at the same time the LNG facilities will come online.
The distant cousins
There’s always so much talk about TransCanda’s oil and gas pipeline networks that it’s easy to forget that the company generates more than 20% of its revenue from other energy sources. Aside from its ownership rights to the Bruce Power nuclear facilities that are about to come online after a full-year restoration project, the company has also just recently completed the construction of Cartier Wind, Canada’s largest wind project. The 590 MW facility is contracted out as an exclusive supplier to Hydro-Quebec for the next 20 years. These long-term energy contracts will help to provide a stable revenue stream in the face of potentially volatile commodity prices.
What a Fool believes
Don’t let Keystone fool you: There’s much more to TransCanada than this controversial project. This wide array of projects and operations is in large part why the company has been able to raise its dividend again for the 13th straight year. With so many projects coming online in the next few years or so, expect TransCanada to continue increasing that dividend as revenues steadily grow from the onboarding of these projects.
The article Meet the Rest of the Keystone XL Family originally appeared on Fool.com and is written by Tyler Crowe.
Fool contributor Tyler Crowe has no position in any stocks mentioned.You can follow him on Fool.com under TMFDirtyBird, Google +, or Twitter: @TylerCroweFool.The Motley Fool recommends Kinder Morgan and Petrobras and owns shares of Apache and Kinder Morgan.
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