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CER orders TC Energy's NGTL system to reduce pressure after a rupture, yet assures no service disruptions in natural gas delivery.
The Canada Energy Regulator (CER) has issued an order to TC Energy Corp.'s NOVA Gas Transmission Ltd. (NGTL) system, mandating a reduction in the operating pressure for the Grande Prairie Mainline gas pipeline located in Alberta. This directive comes in the wake of a reported rupture and subsequent fire in the NGTL gas pipeline system in Alberta during April. Following the incident, CER dispatched inspectors to the site to supervise TC Energy's response and assess the incident's impact. The cause of the rupture is currently under investigation, with the company having announced last month that the NGTL gas pipeline system had resumed normal operations.
Despite the pressure reduction order from CER, TC Energy has assured that there will be no service restrictions or interruptions in natural gas delivery on the NGTL System. The NGTL system plays a crucial role in TC Energy's operations, serving as a natural gas gathering and transportation network that moves gas produced in the Western Canadian Sedimentary Basin (WCSB) to markets across Canada and the United States. This statement by TC Energy underscores the company's confidence in the resilience and reliability of its infrastructure and operational protocols.
In the financial markets, TC Energy's shares have shown resilience, with a reported increase of 0.90% to $39.07. This positive price action reflects investor sentiment and confidence in the company's ability to manage and mitigate the impacts of regulatory orders and operational challenges. Additionally, investors interested in TC Energy have avenues for exposure through financial instruments such as the VanEck Energy Income ETF (EINC) and Barclays iPath Select MLP ETN (ATMP), providing diversified investment options linked to the energy sector.
"Currently we do not have any service restrictions on the NGTL System and we do not anticipate any service interruption to natural gas delivery."