TC Energy reported that it had invested 129 million dollars in its pipeline network in Mexico, with a downward trend.
After investing 357 million dollars in its network in Mexico, the company spent 173 million in 2020.
The company operates in three main businesses: natural gas pipelines, liquids pipelines, and energy and storage.
In order to provide information that is aligned with how management decisions are made about its businesses and how its business performance is evaluated, TC Energy’s results are reflected in five operating segments: Canada Natural Gas Pipelines, United States natural gas pipelines, Mexico natural gas pipelines, Liquid Pipelines and Energy and Storage.
The company also has a Corporate segment consisting of corporate and administrative functions that provide governance, financing and other support to TC Energy’s business segments.
The natural gas and liquids pipelines are primarily comprised of its respective natural gas and liquids pipelines in Canada, the United States and Mexico, as well as its regulated natural gas storage operations in the United States.
Energy and storage includes its energy operations and its non-regulated natural gas storage business in Canada.
In 2021 and 2020, the company invested $7.1 billion and $8.9 billion, respectively, in capital projects to maintain and optimize the value of its existing assets and to develop its complementary assets in high-demand areas.
The company’s total capital spending in 2021 and 2020 included contributions of $1.2 billion and $800 million, respectively, to its equity investments, predominantly related to Bruce Power and Iroquois.
Capital expenditures include capital expenditures, capital projects under development, and contributions to capital investments.
In particular, TC Energy’s gas pipelines in Mexico are regulated by the Energy Regulatory Commission (CRE), which authorizes transmission services for all gas pipeline infrastructure.
Consequently, TC Energy’s Mexican pipelines have rates, services and related rates approved by the CRE.
However, the contracts that support the construction and operation of these facilities are long-term negotiated fixed-rate contracts. Its contractual rates are only subject to change in specific circumstances, such as changes in the law.