Description
SWOT ANALYSIS OF TRANSCANADA
TransCanada
Parent Company
TransCanada
Category
Oil and Gas
Sector
Energy
Tagline/ Slogan
In business to deliver
Leader in the responsible development and reliable operation of North USP American energy infrastructure STP
Segment
Corporates and individuals with energy requirements
Entities which require natural gas, LNG (Liquefied Natural Gas) and Target Group electricity
Engaged in the transmission and storage of natural gas, & in power Positioning generation SWOT Analysis
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 Strength 5. Its pipeline network is over 60,000 km
Weakness
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
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 2nddirect point of access to the growing shale gas supplies in northeast British Columbia, which will help connect new sources of gas supplies to the Opportunity market, thereby reaping better profits for the company
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 Threats company’s efficiency and outputs Competition
1. Duke Energy Corporation 2. Dynegy Inc. 3. El Paso Corporation Competitors 4. Mid American Energy Holdings Company
doc_668451294.docx
SWOT ANALYSIS OF TRANSCANADA
TransCanada
Parent Company
TransCanada
Category
Oil and Gas
Sector
Energy
Tagline/ Slogan
In business to deliver
Leader in the responsible development and reliable operation of North USP American energy infrastructure STP
Segment
Corporates and individuals with energy requirements
Entities which require natural gas, LNG (Liquefied Natural Gas) and Target Group electricity
Engaged in the transmission and storage of natural gas, & in power Positioning generation SWOT Analysis
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 Strength 5. Its pipeline network is over 60,000 km
Weakness
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
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 2nddirect point of access to the growing shale gas supplies in northeast British Columbia, which will help connect new sources of gas supplies to the Opportunity market, thereby reaping better profits for the company
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 Threats company’s efficiency and outputs Competition
1. Duke Energy Corporation 2. Dynegy Inc. 3. El Paso Corporation Competitors 4. Mid American Energy Holdings Company
doc_668451294.docx