Thursday, March 22, 2018

Enbridge News

Enbridge to Move $14.95 bln of Canadian Assets to Affiliate, Raise div

Enbridge Inc, Canada's largest pipeline company, said it will transfer its Canadian liquids pipelines business and certain renewable energy assets to its Canadian affiliate Enbridge Income Fund Holdings Inc, and raised its quarterly dividend by a third. Enbridge said C$17 billion ($14.95 billion) of combined carrying value of assets will be transferred to the affiliate and it will retain operating responsibility for the liquids pipelines business. "Our plan ... comes after an extensive review of the potential to further enhance the value of our $44 billion growth program and lower the cost of funding for that program and for new investment opportunities…

Canada's Enbridge Expects Adjusted Profit to Rise on Spectra Deal

Enbridge Inc , Canada's largest pipeline company, said on Thursday it may acquire more assets and forecast a rise in adjusted earnings before interest and taxes this year following its purchase of Spectra Energy Corp. Enbridge said last September it would buy Spectra, a smaller rival then valued at $28 billion, to create the largest energy infrastructure company in North America. The deal, which closed on Feb. 27, highlighted the pressure on pipeline companies to merge as they grapple with over-capacity and sliding tariffs. Calgary, Alberta-based Enbridge…

Enbridge Energy Selling 12.6 pct of Midstream Stake

Enbridge Energy Partners LP said it would sell a 12.6 percent interest in its natural gas midstream business to partner Midcoast Energy Partners LP for $350 million. Enbridge's interest in Midcoast Operating LP will fall to 48.4 percent after the sale, the company said. Enbridge said it would use the proceeds to help fund its pipeline expansion program. Midcoast Energy said in a separate statement that it would finance the deal with debt. Reporting by Kanika Sikka

Enbridge: No plans to Imitate Kinder Morgan Consolidation

Enbridge Inc, Canada's largest pipeline company, said on Monday it has no plans to imitate rival Kinder Morgan Inc's $44 billion plan to consolidate its publicly traded units into a single company. Enbridge, whose separately traded affiliates include Enbridge Energy Partners and Enbridge Income Fund Holdings Inc, said it has no interest in returning those companies into the corporate fold and cannot see a competitive advantage coming from such a move. "Enbridge already has a highly competitive cost of capital, and is well positioned to deliver double-digit dividend per share and earnings per share growth through 2017…

Enbridge Hoping for Cross-Border Pipeline Presidential Permit

Canadian pipeline company Enbridge Inc hopes to get a U.S. presidential permit for its proposed Alberta Clipper pipeline expansion by the end of 2015, president of liquids pipelines Guy Jarvis said on Friday. The Alberta Clipper pipeline ships Canadian crude from Hardisty, Alberta, to Superior, Wisconsin, and Enbridge plans to increase capacity to 800,000 barrels per day from 500,000 bpd. Cross-border pipeline projects need presidential approval to go ahead. Speaking on a fourth-quarter earnings call, Jarvis said Enbridge already had state and provincial permits in place and was still working with the Department of State to secure the presidential permit.

Enbridge, Spectra Energy to Settle Charges Merger Would Harm Competition

Energy infrastructure firms Enbridge Inc and Spectra Energy Corp have agreed to settle charges their merger would hurt competition in the market for gas pipeline transportation in three areas off the Louisiana coast, the Federal Trade Commission said on Thursday. The FTC said the firms agreed to resolve the charges by adopting a consent decree that would require Enbridge to notify the panel before acquiring an ownership interest in any natural gas pipeline operating in the Grand Canyon, Walker Ridge and Keathley Canyon areas off Louisiana.

U.S., Enbridge Reach $177 mln Settlement After 2010 Oil Spills

The U.S. Justice Department and Environmental Protection Agency and U.S. units of Enbridge Inc reached a settlement under which the pipeline company will pay $177 million after a 2010 oil spill that released crude oil in Michigan and Illinois, Enbridge said on Wednesday. Enbridge Energy Partners will pay $62 million in fines and around $120 million to prevent future spills, it said in a statement. The July 2010 spill dumped 800,000 gallons of oil and affected 38 miles (61 km) of the Kalamazoo River after a rupture of its Line 6B pipeline due to corrosion fatigue. It was one of the largest onshore oil spills in U.S.

Canada's Enbridge to Buy Spectra Energy in $28 bln Deal

Enbridge Inc, Canada's largest pipeline company, said on Tuesday it would buy Spectra Energy Corp in an all-stock deal valued at about C$37 billion ($28 billion) to create the largest North American energy infrastructure company. Enbridge's biggest-ever deal comes as the company has been steadily expanding its North American pipeline network, which carries the bulk of Canadian crude oil to the United States. Spectra shareholders will get 0.984 shares of the combined company for each share held. This is equivalent to $40.33 per share, representing a premium of about 11.5 percent to Spectra's closing price on Friday.

Maintenance to Cut Enbridge's Mainline Capacity

Canada's largest pipeline company Enbridge Inc expects maintenance work over the next three months to cut throughput on the western leg of its crude export network by up to 9 percent, a company document seen by Reuters on Friday showed. Pipeline space lost to maintenance by November will total nearly 190,000 barrels per day of the 2.4 million bpd of operating capacity on the Canadian portion or western leg of the Mainline system, which carries the bulk of Canada's crude exports to the United States. Traders in Canada's oil capital Calgary…

Enbridge to Raise Stake in Two Quebec Wind Farms

Enbridge Inc, the Canadian pipeline company building up a portfolio of renewable power projects, said on Tuesday it has agreed to pay C$225 million ($204 million) to increase its stake in two wind-power sites it co-owns with Electricite de France SA (EDF) . Enbridge will raise its ownership in the 300-megawatt Lac Alfred wind power project by 17.5 percent, bringing its stake in the eastern Quebec project to 67.5 percent. It will also raise its position in the 150-megawatt Massif du Sud site by 30 percent to 80 percent. Enbridge produces more than 1…

Canada Regulator OKs Two Conditions on Enbridge Line 9

Canada's National Energy Board approved two of Enbridge Inc's condition filings on the reversed Line 9 pipeline on Friday, but also imposed additional ones on the company. Enbridge's newly reversed Line 9 pipeline will carry 300,000 barrels per day between Sarnia, Ontario, and Montreal, Quebec. The line was reversed to carry inland crude to Montreal. It had previously flowed the other way, taking imported crude to Ontario. It was expected to start up late last year but was delayed after the regulator requested additional data on shut-off valve placements at major water crossings.

Refiners Shun New Canadian Crude Blend

Enbridge Inc has approved a new stream of heavy Canadian crude for export on one of its major oil pipelines to the United States, according to four trading sources. The only problem? No one wants it. Canada produces more heavy than light crude because of its vast oil sands projects in northern Alberta. Space on the Enbridge system for heavy barrels is in short supply, with congestion set to worsen as oil sands production grows. Enbridge's plan to squeeze more heavy crude onto its pipelines by shipping the new grade is its latest attempt to resolve bottlenecks in the 2.85 million barrel per day (bpd) Mainline system, traders in Calgary said.

Enbridge Eyes Market Share as Competitors' Pipes in Limbo

Canada's Enbridge Inc will take advantage of the uncertainty facing competitors' pipelines to gain market share, including starting early discussions on a new tolling agreement after 2022, a senior executive said on Thursday. An election in the Canadian province of British Columbia last month has complicated Kinder Morgan Inc's Trans Mountain pipeline expansion, with the two parties set to take power vowing to block the project. TransCanada's Keystone XL pipeline project through the United States has presidential approval, but still needs permission from the state of Nebraska.

2H Offshore Awarded Hess and Enbridge Verification Contracts

Location of Stampede Field (Photo: 2H Offshore)

2H Offshore, an Acteon company, has been awarded two separate contracts, one by Hess Corp. (Hess) and a second contract by Enbridge Energy Co. (Enbridge), to verify the design, fabrication and installation phases of the Steel Catenary Risers (SCRs) for the Stampede field development in the Gulf of Mexico. The Stampede field is operated by Hess. Enbridge plans to build, own and operate the oil export pipeline from the Stampede tension leg platform (TLP). The subsea development is situated in Green Canyon blocks 468, 511 and 512 in the central U.S. Gulf of Mexico, in water depths of approximately 3,500 ft.

Canadian Heavy Crude Extends Gains

The price of Canadian heavy crude at Cushing, Oklahoma, hit fresh highs on Thursday, lifted by demand from new pipelines and narrowing differentials in Alberta, market sources said. Rising prices are the latest sign of surging demand for crude at the storage hub, which is the delivery point for U.S. crude oil futures. The premium for Canadian crude at the hub strengthened to around $2 to $3 a barrel since the previous month, according to one trader. Western Canada Select heavy blend for November delivery at Cushing traded at $4.75 per barrel below WTI, having changed hands at around $5.25 per barrel below on Wednesday.

Enbridge: New Bakken Pipeline Delayed Until 2017

Enbridge Inc said on Tuesday it does not expect its planned Sandpiper oil pipeline taking crude from the Bakken oilfield to its mainline system to be in service until 2017, a year later than originally forecast. Speaking to reporters following the company's annual investor day in Toronto, Al Monaco, Enbridge's chief executive, said the delay was caused by the Minnesota regulator's decision to split a review of the need for the line and its routing into two separate hearings. Sandpiper will add a new, 225,000 barrel per day line, running from Beaver Lodge…

Canada: Aboriginals Adequately Consulted on Enbridge Pipeline

Canada's top court ruled on Wednesday that aboriginals were adequately consulted on changes to an Enbridge Inc oil pipeline, dismissing an attempt to quash the national energy regulator's approval of the project. The Supreme Court of Canada ruled in a unanimous decision that the Chippewas of the Thames First Nation were given early notice of hearings on changes to Enbridge's Line 9 oil pipeline, which runs between Sarnia, Ontario, and Montreal, through what the Chippewas regard as their traditional territory. The First Nations group was also aware that the National Energy Board (NEB) was the final decision maker, the court found.

Enbridge Posts Quarterly Profit as Shipments Rise

Enbridge Inc , Canada's largest pipeline company, reported a quarterly profit, compared with a year ago loss, as crude shipments increased. Enbridge delivered about 2.5 million barrels per day (bpd) of crude oil through its Canadian mainline system during the quarter, up from 2.2 million bpd a year earlier. Deliveries through the company's Lakehead pipeline system also rose, to 2.7 million bpd from 2.3 million bpd a year earlier, the company said on Thursday. Enbridge's Line 18 pipeline, which carries crude from its Cheecham terminal, was back in service on Wednesday, nearly a week after it was shut down as wildfires raged through northern Alberta.

Enbridge cuts 5 pct of Canada, U.S. Workforce

Enbridge Inc, Canada's largest pipeline company, is laying off 5 percent of its work force after an organizational review, a spokeswoman said on Wednesday. The cuts will total 530 people, affecting 370 positions in Canada and 160 in the United States. Calgary-based Enbridge launched the review in the first quarter, spokeswoman Suzanne Wilton said. Reporting by Nia Williams

Suncor Says Line 9 to Deliver Inland Crude to Montreal

Suncor Energy commenced linefill on Enbridge Inc's Line 9 pipeline earlier this month and the first inland crude volumes will reach the company's Montreal refinery by year-end, Suncor Chief Executive Steve Williams said on a third-quarter earnings call on Thursday. Enbridge's reversed Line 9 pipeline will carry 300,000 barrels per day from Sarnia, Ontario, to Montreal.   (Reporting by Nia Williams)