Enbridge Inc. has announced better-than-expected results for 4Q15, but said that two of its pipeline projects faced rising costs and delays of at least two years.
The Calgary-based pipeline operator posted net profit of CAN$378 million in 4Q on record volumes, amid a depressed crude oil price environment.
“Despite one of the most dramatic downturns in the energy sector in decades, we delivered very strong adjusted earnings and cash flow growth for our shareholders that were in line with our expectations,” said Al Monaco, President and Chief Executive Officer.
Two new Enbridge projects caught in regulatory delays include a proposed CAN$2.6 billion Sandpiper project intended to transport oil from North Dakota to Minnesota, while a CAN$7.5 billion Line 3 Replacement Project is planned to run from Hardisty, Alta. to Wisconsin on the US side, through Minnesota.
Enbridge expects the new regulatory requirements for both projects to delay construction by two years to 2019 and deferment of CAN$5 billion of capital.The Northern Gateway project also faces local and aboriginal opposition.
“It is difficult to determine how and where producers will make decisions going forward, which is why when we look at our strategy it falls back to setting up an inventory of opportunities for Enbridge that aren’t reliant on the oilsands post 2019,” Guy Jarvis, Head of Liquid Pipelines said.
Edited from various sources by Elizabeth Corner
Read the article online at: https://www.worldpipelines.com/regulations-and-standards/22022016/enbridge-claims-more-pipeline-delay-due-to-regulations-hurdles/