After 67 years of Business in the Oil and Gas Industry, TransCanada is taking off “Canada” off its name. The CEO, Russ Girling made the statement on Wednesday, January 9th, 2019.
According to Girling,
“The name TC Energy clearly articulates our complete business – pipelines, power generation and energy storage operations – and reflects our continued continental growth into an enterprise with critical assets and employees in Canada, the United States and Mexico,”
The name change was made public at the gathering of employees in Mexico City. TransCanada started their operations in Calgary in 1951 with the name TransCanada Pipelines Ltd. The company moved natural gas from Alberta to the Eastern parts of Canada. Since then the company has grown exponentially with its major revenue now coming from the United States.
The company built its Mainline gas pipeline of about 14,000km (8,700 mi) in the 1950s, but about 60% of its revenue came from the United States of America in 2017(Bloomberg), Canada accounted for 37% while Mexico made up the rest.
The $10.2 billion acquisition of the Columbia Pipeline Group Inc in 2016 signaled the heavy diversification into the US market. The name change is a move to seek a trademark on new company names which would function effectively in Canada.
In replacement of the old name, Company names like Northbow, TC Energy, Ventiv, TCE and Convergent where published by the pipeline builder, as stated by the Canadian Intellectual Property Office.
The Pipeline builder and operator share in the country’s stock market rose by 8.3% this year following the rebound in Oil prices.
However, there are warnings about the uncertainties that surround the framework conditions for the name change which could impact heavily on future expenditures.