$900-MM Northwoods pipeline expansion approved to serve U.S. Midwest growth
TC Energy Corp. approved its Northwoods project in April, marking a major expansion of its ANR pipeline system aimed at meeting rising demand from natural gas-fired power generation and data centers in the U.S. Midwest.
The Calgary, Canada-based company revealed the project during its first quarter 2025 earnings report, highlighting it as a cornerstone of its near-term growth strategy alongside advancing its Southeast Gateway pipeline.
The Northwoods project will add 400 MMft3d of capacity through pipeline looping, new compressor stations and other system upgrades. The $900-MM project is backed by a 20-yr, take-or-pay contract with a creditworthy customer, ensuring steady returns and low risk. TC Energy expects the expansion to be in service by late 2029.
“As natural gas and electricity are forecasted to drive the majority of growth in final energy consumption through 2035, we are pleased to announce the Northwoods project on our ANR system, designed to serve electric generation demand in the U.S. Midwest, including data centers and overall economic growth,” said François Poirier, President and CEO of TC Energy.
The project is targeting a build multiple of five to seven times, in line with TC Energy’s strategic focus on pursuing high-value, in-corridor opportunities supported by long-term contracts.
“Northwoods exemplifies our disciplined strategy and our ability to capture high-value, low-risk opportunities across our portfolio,” Poirier added.
Southeast Gateway nears in-service. While Northwoods will serve future Midwest demand, TC Energy also reported significant progress on the Southeast Gateway pipeline in Mexico. Construction is complete on the 715-km pipeline, which will deliver 1.3 Bft3d of natural gas under a fully contracted arrangement with Mexico’s Comisión Federal de Electricidad (CFE).
TC Energy said CFE has accepted all requirements for service, and final regulatory approval is expected by the end of May. Southeast Gateway was built approximately 13% under budget and will enter service soon after receiving rate approval from Mexico’s Comisión Nacional de Energía (CNE).
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