89 TC Energy’s planned spin-off of its oil pipeline division, South Bow, is aimed at increasing Canadian crude supply to U.S. Gulf of Mexico refiners. However, the venture encounters obstacles amidst fierce competition and substantial debt. The proposed spin-off, subject to a vote by TC investors on June 4, is part of TC’s strategy to reduce its own debt burden and concentrate on natural gas transportation. South Bow’s emergence coincides with Canada’s efforts to diversify its crude transportation options, including the recent expansion of Trans Mountain to facilitate shipments to the U.S. West Coast and Asia. In the U.S. Gulf, South Bow faces competition from Enbridge, which has its own strategy for expanding in the region and owns significant oil storage and export infrastructure in Texas. Despite access to third-party marine facilities, South Bow’s options for Gulf exports are limited compared to Enbridge. You Might Be Interested In Starbucks Launches New Pride-Inspired Drinkware Collection by Artist Sofie Birkin Bain Capital Enters Talks to Acquire Education Software Provider PowerSchool AutoZone Successfully Implements Leadership Transition Plan Sheffield’s Sitehop Raises £5m to Advance Cybersecurity Encryption The J.M. Smucker Co. Declares Dividend and Announces Annual Shareholder Meeting Date General Electric Completes Three-Way Split, Transitioning from Storied Past
