Enbridge sees pipeline opportunities in Mexico

The chief executive of Enbridge Inc. has said that there could be opportunities to build new pipelines in Mexico as the country opens its energy industry up to outside investment.

“They’re obviously in significant need of pipeline infrastructure,” said Al Monaco, adding that goes for both oil and natural gas.

Mexico is in the process of ending the government’s 75 year long monopoly over energy through a series of reforms. It hopes private investment and foreign expertise can help revive its oil and gas production, which has been waning.

A delegation of Mexican government officials and business leaders visited Calgary earlier this year to tout the opportunities.

“Obviously these changes that have been brought down are very positive in that they’re going to encourage a lot more investment,” Monaco said when discussing the company’s second-quarter results.

However, Enbridge has no immediate plans to enter Mexico, he said.

“We’re going to watch to see how these regulations work through and we’ll keep our finger on the pulse and see where we go there.”

Enbridge rival TransCanada Corp. already has a foothold in Mexico, with two pipelines operating and expansions in the hopper. It, too, has indicated the Mexican reforms could mean opportunities for new projects.

Enbridge executives also discussed the possibility of building a new rail unloading facility in Illinois that would help bring Alberta crude to the US Gulf Coast. Its tentative start-up date would be early 2016.

Edited from various sources by Elizabeth Corner

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