Oct 2 (Reuters) - TC Energy's ( TRP ) liquids pipeline

spin-off, South Bow Corp, edged lower on its first day

of trading on the Toronto Stock Exchange on Wednesday, tracking

a broader weakness in Canadian energy stocks.

South Bow was spun out of Calgary-based TC to help TC reduce

its debt load and focus on moving natural gas. Shareholders

received one South Bow common share for every five TC common

shares held.

The stock was last down 0.2% at C$29.01 on the Toronto Stock

Exchange.

South Bow's main asset is the 622,000 barrel-per-day

Keystone pipeline, which ships Canadian crude from Alberta to

the U.S. Midwest and Gulf Coast. In total the company operates

4,900 km (3,045 miles) of oil pipeline infrastructure and ships

about 20% of Canadian crude exports to the U.S.

South Bow has made clear it will focus on maximizing

operations on its existing assets and returning cash to

shareholders, rather than becoming a growth engine, said Martin

Cobb, senior vice president of equities at Lorne Steinberg

Wealth Management, which holds shares in South Bow.

"They have set out their stall as a cash flow machine," Cobb

said.

Canada is the world's fourth-largest crude producer and

output from northern Alberta's oil sands has hit record highs

over the past year, driven partly by the start-up of the Trans

Mountain expansion project which competes with Keystone for

customers.

Analysts said South Bow's higher-than-average dividend yield

would help offset investor concerns about its substantial debt

load, while the highly contracted Keystone pipeline is seen as a

stable source of revenue.

"The high level of contracts and competitive position of the

Keystone pipeline supports a healthy valuation, but the less

diversified cash flows, lower growth and higher leverage will

likely weigh on valuation relative to peers," BMO Capital

Markets analyst Ben Pham said in a research note.