Enbridge set to spend US$500 million expanding pipeline assets
Published by Isabel Stagg,
Editorial Assistant
World Pipelines,
North American pipeline operator Enbridge raised its short-term profit growth forecast on Wednesday 6 March, 2024, and said it will spend US$500 million expanding pipeline and storage assets to improve its US Gulf Coast presence, Reuters reports.
The Calgary, Alberta-based firm raised its core profit growth forecast to between 7% and 9% through 2026 – from 4% - 6% through 2025 – saying the increase is primarily driven by its US$14 billion acquisition of three US gas utility companies from Dominion Energy.
Enbridge, which operates North America's biggest oil pipeline network, the Mainline, said it expects Western Canadian oil production to grow by 500 000 bpd, or 10%, through 2025. That growth will fill pipeline capacity to 99% by 2026, Executive Vice President of liquids, Colin Gruending, said at a New York investor meeting.
A near tripling of capacity on the rival Trans Mountain oil pipeline, scheduled for the second quarter, will not take a large volume from the Mainline, Gruending said.
Enbridge can add 200 000 bpd capacity, or 7%, to the Mainline to meet growing US Gulf of Mexico demand without spending much capital, CEO Greg Ebel said.
"We can continue to be optimistic about the pipeline capabilities beyond a big build-out, to actually add those volumes," Ebel told reporters on a phone call.
The company said it will acquire two marine docks and land from US oil refiner Flint Hills Resources for about US$200 million.
The assets are next to the Enbridge Ingleside Energy Centre, the largest crude oil storage and export terminal by volume in the United States.
The company will spend US$100 million expanding its Gray Oak oil pipeline in Texas.
Enbridge also sanctioned US$200 million of offshore pipelines to service Shell and Equinor's planned Sparta offshore oil and gas project in the Gulf.
The plans come over a month after Enbridge said it will reduce its workforce to cut costs.
Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.
World Pipelines’ March 2024 issue
The March 2024 issue of World Pipelines includes a keynote article on building cyber resilience into midstream assets, along with technical articles on pipeline rehabilitation, pig design, flexible pipe systems, NDT, and pipeline integrity. It also features our annual Heavy Equipment Focus, along with some insight on trends in hydrogen pipelines.
Read the article online at: https://www.worldpipelines.com/business-news/07032024/enbridge-set-to-spend-us500-million-expanding-pipeline-assets/
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