Coastal GasLink Capacity Expansion Might Change The Case For Investing In TC Energy (TSX:TRP)

• TC Energy Corporation recently confirmed that Coastal GasLink Phase 2 will proceed after LNG Canada's expansion decision, nearly doubling capacity along the existing 670-kilometre route in British Columbia through new compressor stations and facility upgrades.

• This expansion, expected to start construction in early 2027 and enter service in the early 2030s, strengthens TC Energy's role in connecting Canadian natural gas to global LNG markets while promising jobs, contracting, and skills development for Indigenous and local communities.

• We'll now examine how the decision to nearly double Coastal GasLink's capacity may influence TC Energy's longer-term investment narrative.

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TC Energy Investment Narrative Recap

To own TC Energy, you need to believe in the long term value of regulated, long lived gas pipelines supported by contracted cash flows and disciplined capital allocation. The decision to advance Coastal GasLink Phase 2 reinforces the growth side of that thesis, but it does not change the near term focus on executing projects within budget and managing leverage, especially given interest coverage and dividend sustainability remain key risks many investors are watching.

Among recent announcements, the continued quarterly dividend of C$0.8775 per share (C$3.51 annualized) stands out alongside the Coastal GasLink news. While Phase 2 highlights future capacity growth, the ongoing dividend signals management's current confidence in cash generation, which matters for investors weighing construction, cost and balance sheet risks against income needs as new projects move from approval toward execution.

However, investors should also be aware that elevated debt levels and interest coverage pressures could limit flexibility if construction or regulatory challenges on key projects were to...

Read the full narrative on TC Energy (it's free!)

TC Energy's narrative projects CA$18.2 billion revenue and CA$5.3 billion earnings by 2029.

Uncover how TC Energy's forecasts yield a CA$98.78 fair value , a 17% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community span from C$33.89 to C$98.78, showing wide dispersion in individual expectations. Against that backdrop, the Coastal GasLink Phase 2 decision highlights how differently investors may weigh long term gas infrastructure growth against balance sheet and execution risks, so it can be useful to compare several views before forming your own.