June 4 (Reuters) - TC Energy ( TRP ) shareholders voted

in favour of spinning off the Canadian company's liquids

pipeline business on Tuesday, creating a new energy

infrastructure firm known as South Bow Corp whose assets include

the Keystone oil pipeline.

The spin-off will help Calgary-based TC lower its high debt

load and focus on moving natural gas.

South Bow's assets consist of nearly 4,900 kilometres of

liquids pipelines that connect oil supply in Alberta and parts

of the United States to refining markets in Illinois, Oklahoma

and Texas.

Its signature asset is the 622,000 barrel per day

Keystone pipeline, a key export conduit for Canadian crude.

The new company will carry a high debt load of C$7.9

billion ($5.78 billion) due to TC and

faces competition

from other pipeline companies looking to expand shipments

to the U.S. Gulf Coast market.

BMO Capital Markets analyst Ben Pham said South Bow's

narrow asset base and lower growth forecast than TC could also

weigh on its valuation.

However South Bow will benefit from long-term shipping

contracts covering 94% of capacity on Keystone, providing

guaranteed revenues.

Before deciding to spin off its liquids pipeline

business TC held discussions with two separate energy

infrastructure companies about setting up a new joint venture

entity, according to a TC management information circular

released in April.

"This implies that South Bow could be viewed as a

takeout candidate when it starts trading," Scotiabank analyst

Robert Hope said in a note to clients.