TransCanada SWOT Analysis, USP & Competitors

TransCanada

Parent Company

TransCanada

Category

Oil and Gas

Sector

Energy & Power

Tagline/ Slogan

In business to deliver

USP

Leader in the responsible development and reliable operation of North American energy infrastructure

TransCanada STP

Segment

Corporates and individuals with energy requirements

Target Group

Entities which require natural gas, LNG (Liquefied Natural Gas) and electricity

Positioning

Engaged in the transmission and storage of natural gas, & in power generation

TransCanada SWOT Analysis

Strengths

1. TransCanada’s strong market position resulting from its vast network of energy infrastructure network provides competitive strength, and helps it execute newer asset investment programs
2. It has diverse energy generation assets (owns and controls 10,800 MW of power generation comprising a diverse but balanced portfolio) , which helps it develop its business further
3. It has one of the largest natural gas storage facilities in west Canada, and aided by contracted third parties like CrossAlta, Edson etc., this has been a major contributor to TransCanada’s growth

4. Over 4000 people work for the organization

5. Its pipeline network is over 60,000 km

Weaknesses

1. TransCanada earns major part of its revenue only from the North American market, and this exposes the company greatly to risks of this market, which can have a negative impact on its growth prospects
2. TransCanada, as compared to its competitors, suffers from lack of scale in terms of power generating capabilities, revenue and number of employees which inhibits its ability to effectively compete with other large players in the industry

Opportunities

1. Increase in natural gas demand in North America (due to an increased demand for power) will help TransCanada capture investment opportunities and grow by involving in newer projects
2. It has invested in strategic projects to scale up its “Clean Energy” Portfolio (of Renewable energy Assets) such as the Halton Hills Generating Station, Kibby Wind power project, Cartier Wind Project, acquisition of Ontario Solar Projects etc. which, in addition to improving its growth opportunities, will also enhance its Brand Image
3. TransCanada’s HornRiver Pipeline project will provide a 2^nd direct point of access to the growing shale gas supplies in northeast British Columbia, which will help connect new sources of gas supplies to the market, thereby reaping better profits for the company

Threats

1. Intense competition from other players who have greater financial resources and access to supplies of natural gas can pose a challenge in the future to TransCanada
2. Stringent environmental regulations such as the Canadian Govt.’s Regulatory Framework for Air Emissions would affect a number of facilities of TransCanada, and affect their existing operations, thereby imposing extra liabilities on the company
3. Fluctuation in power and natural gas prices in the competitive, deregulated American market can and sometimes do affect the company’s efficiency and outputs

TransCanada Competition

Competitors

1. Duke Energy Corporation
2. Dynegy Inc.
3. El Paso Corporation

4. Mid American Energy Holdings Company