Sunday, September 23, 2018

Enbridge News

Enbridge Eyes Additional Asset Sales

Photo: Enbridge

Enbridge Inc may sell more assets than expected this year, seeing strong interest from potential buyers after achieving a goal this week for 2018 divestitures.Enbridge has been under pressure to reduce leverage, one of the factors that has weighed on its share price. Selling assets would also help the company become a pure pipeline utility.The company announced two sales on Wednesday that will help it exceed its target for $3 billion in divestitures this year, but more deals are being discussed."A good example of where we're getting a lot of inbound interest is on the Canadian (gathering and processing) assets in whole or in part…

North American Pipeline Operators Fold in Assets After New FERC Rules

© cec72/ Photo: Adobe Stock

Three large North American pipeline operators said on Thursday they would absorb their midstream assets after a U.S. energy regulator removed some tax benefits for master limited partnerships (MLP) in March.Enbridge Inc, Williams Cos and Cheniere Energy Inc all said they would buy out their MLP pipeline or storage assets in multi-billion dollar deals.An MLP is a limited partnership that is publicly traded and, as such, enjoys the benefits of paying no tax at the company level as well as the liquidity that comes with being traded on a major stock exchange.But changes made by the U.S.

Minnesota Regulators Question Enbridge Pipeline Expansion

Line 3 Replacement Project (Photo: Enbridge, Inc.)

Commissioners on a Minnesota regulatory board questioned crude oil demand for Enbridge Inc's Line 3 pipeline on whether work can proceed on a proposed expansion of the line. Enbridge wants to replace the aging 1,031 mile  pipeline that runs from Alberta to Wisconsin, but approval is needed from the Minnesota Public Utilities Commission. Bottlenecks in Alberta have steepened a price discount for its heavy crude this year. Line 3, placed into service in 1968, operates at half its capacity due to integrity concerns. Its replacement would allow it to return to approved capacity of 760,000 barrels per day.

Canada Dreams of Oil Exports to Asia, but California Beckons

File Image (CREDIT: AdobeStock / © Diter)

The nationalization of a crude oil export pipeline in western Canada has buoyed long-standing hopes for crude exports to markets beyond the United States - but the most likely destination for much of that oil is California. Faced with declining production from Latin America and rising prices for higher-grade crudes from the Middle East, the Golden State is importing more oil from Canada - much of it via the Trans Mountain pipeline, which Kinder Morgan Canada last month sold to Ottawa for C$4.5 billion ($3.5 billion). The Canadian government has pledged to "immediately" start work on the C$7.4 billion Edmonton-to-Vancouver expansion…

MN Regulators Signal Support of Enbridge Pipeline

File Image (CREDIT: AdobeStock / © Berkut 34)

Three of five members of the Minnesota Public Utilities Commission said on Thursday they support issuing a certificate of need for Enbridge Inc to rebuild its Line 3 oil pipeline, angering environmentalists but offering hope to Western Canadian oil producers. The two other commissioners did not explicitly say they would vote in favor of the certificate but approval appeared to be imminent. It was not yet clear what conditions would be placed on the approval or whether the commission would approve the pipeline route preferred by Enbridge. "I think we have a certificate of need decision essentially made," said commissioner John Tuma.

Leach Xpress Pipeline Service Delayed until Mid-July

File Image (CREDIT: AdobeStock / © Berkut 34)

TransCanada Corp's Columbia Gas Transmission unit pushed back the date of its Leach Xpress natural gas pipeline in West Virginia. Service will be resumed mid-July. The pipe was damaged in a blast on June 7. The Leach shutdown forced producers using the line to find other pipes to move gas out of the Marcellus and Utica shale regions of Pennsylvania, West Virginia and Ohio. Alternative pipelines include ETP's Rover, Tallgrass Energy Partners LP's Rockies Express (REX), EQT Midstream Partners LP's Equitrans and Enbridge's Tetco, according to analysts at S&P Global Platts.

Enbridge Completes 40 pct of Line 3 Work, Tops Profit Estimates

Photo courtesy of Enbridge

Enbridge Inc said on Friday it had completed 40 percent of replacement work on its massive Line 3 pipeline and reported a better-than-expected quarterly profit by reining in costs.Canada's largest pipeline operator won a key approval in June to replace the 1,031-mile (1,660-km) long pipeline, which began service in 1968 and operates at half its capacity.A replacement would allow the pipeline, which runs from Alberta in western Canada to Wisconsin in the United States, to return to approved capacity of 760,000 barrels per day.The company also…

Enbridge Starts Valley Crossing Natgas Pipe Work at Tex-Mex Border

Photo:: Enbridge Inc

Canadian energy company Enbridge Inc said it started construction of the offshore border crossing section of its $1.6 billion Valley Crossing natural gas pipeline between Texas and Mexico, according to a federal filing made available on Wednesday.The 168-mile (270-kilometer) Valley Crossing project is designed to carry up to 2.6 billion cubic feet per day (bcfd) of gas from Texas to help Mexico meet its growing power needs as generators there shift away from fuel oil and imported liquefied natural gas.One billion cubic feet is enough to fuel about five million U.S.

Enterprise Expects to Load First Supertanker at Texas Port This Month

© John Regan/ MarineTraffic.com

Seaway Crude Pipeline Company LLC, a joint venture between Enterprise Products Partners LP and Enbridge Inc, plans to load its first supertanker this month at its Texas City marine terminal:* VLCC FPMC C Melody will be loaded with about 1.1 million bbls (2-million-bbl capacity); remaining crude to be transferred in a lightering zone* The VLCC was anchored near Houston as of Wednesday - Thomson Reuters vessel tracking data/shipping source* Enterprise said Midland-Sealy pipeline reached full service capabilities in April and is currently moving volumes at full capacity* Enterprise is evaluating an NGL pipeline conversion to crude to add capacity* Enterprise crude exports we

Delfin Taps China for US FLNG, but Final Investment Decision 'Challenging'

(Image: Delfin LNG)

Delfin Midstream, developing the first floating facility to export U.S. natural gas, has sealed a preliminary 15-year sales deal with city gas distributor China Gas Holdings, Delfin founder and Chief Executive Officer Frederick Jones said. But industry veteran Jones told Reuters in an interview that Delfin is also tapping unnamed Chinese banks to fund its ambitious $8 billion as the current global supply overhang in liquefied natural gas (LNG), with bumper exports also expected from Australia and Qatar, makes Delfin’s target of a final investment decision (FID) in 2018 challenging.

First Turbine Turned On at E.ON's Rampion

© 孤飞的鹤 / Adobe Stock

The first turbine has come online at E.ON's Rampion wind farm off the coast of southeast England, the German utility said on Monday. The 400 megawatt project is being built off the Sussex coast by E.ON, UK Green Investment Rampion Ltd and Canadian energy infrastructure company Enbridge. "Over the coming weeks and months the turbines will one-by-one begin to be turned on and generate power as they are brought online. This process will take us into 2018 to complete," said Matthew Swanwick, Rampion's project director. The wind farm comprises 116 turbines and when fully operational will provide enough electricity to supply almost 347…

Enbridge Shares Climb After $2.3 bln in Asset Sales

Photo: Enbridge

Enbridge Inc shares jumped as much as 6.2 percent on Thursday after North America's largest energy infrastructure company announced plans to sell C$3 billion ($2.3 billion) of noncore assets to focus on its central business. The company is also raising C$1.5 billion by selling new shares to pay down debt. It has identified C$22 billion worth of projects it intends to complete through 2020. The Calgary-based company said late on Wednesday it has identified another C$7 billion in noncore assets to divest including unregulated gas gathering and processing businesses and onshore renewables in the United States and Canada.

Enbridge: Line 3 Pipeline Project Operational Date Uncertain

The operational date for Enbridge Inc's C$8.2 billion ($6.52 billion) Line 3 pipeline replacement project is uncertain and could be as late as November 2019, the company said on Tuesday. "Until we get to the point where the construction plan can be fully optimized, it is very difficult to be precise about exactly when the project can come into service," Enbridge Executive Vice President Guy Jarvis told investors in New York.     Reporting by Ethan Lou

Canada Oil Producers Fill Pipelines, Railroads

File Image: A crude oil train rolls through America's heartland. CREDIT Dagmar Etkin

Canadian oil producers are running out of options to get crude to market as pipeline and rail capacity fills up, driving prices to four-year lows and increasing the risk of firms having to sell cheaply until at least late 2019. This will drive down the profit margins for the oil sands industry, already struggling to compete with cheaper and abundant supplies from U.S. shale. A number of foreign oil majors have left Canada's oil sands to invest in more profitable U.S. shale plays, selling over $23 billion in Canadian assets this year alone. Canada's oil sands output is still growing - but only as projects under construction are completed and smaller expansions come online.

Oil Workers Sue Shell over GoM Platform Fire

File photo: Shell's Enchilada Fixed-Leg Platform

Three offshore oil workers filed a lawsuit against units of Royal Dutch Shell and Enbridge, seeking $1 million in damages for injuries they allegedly received during a Nov. 8 fire on a U.S. Gulf of Mexico production platform. The suit, filed in Galveston County court in Texas on Dec. 5, claims safety lapses on Shell's Enchilada platform caused severe injuries to the three. The complaint seeks more than $1 million in damages from Shell International Exploration and Production, Shell Offshore, and Garden Banks Gas Pipeline Co, a unit of Enbridge, which owns a gas pipeline connected to the platform.

Price Rally Spells Fleeting Relief for Canadian Producers

Canadian heavy crude rallied to a two-month high relative to U.S. crude this week, offering some relief to oil producers in Alberta struggling with thin margins amid plentiful supply. The rally was likely to be short-lived, traders and analysts said, because output continues to grow without a corresponding increase in transportation capacity. Canada's crude typically trades at a discount to U.S. benchmark West Texas Intermediate (WTI) light oil, reflecting transportation costs to U.S. refineries and additional processing requirements. The discount expanded since a November leak in TransCanada Corp's Keystone pipeline…

Canadian Railways in 'catch-22' over Crude Shipments

File Image: A crude oil train rolls through America's heartland. CREDIT Dagmar Etkin

Canadian railway operators see a lucrative opportunity to transport more crude oil to the United States as a rise in output force producers to find new routes to its southern neighbor. However, their need for long-term contracts and the pressure to move a surplus of grains in the country is making it hard to cash-in on the prospect. Canada moves about 95 percent of its oil by pipelines, which are currently full. A 20 percent rise in crude production in the past five years has increased pressure to find new ways to haul the commodity, with rail being the second cheapest alternative.

Oklahoma Orders Cut to Disposal Well Volumes Following Quakes

© Jim / Adobe Stock

Oklahoma regulators forced an oil and gas producer to reduce operations on a well used for disposing saltwater following a large earthquake over the weekend that set off a series of seismic activity in the state, Matt Skinner, spokesman for the Oklahoma Corporation Commission (OCC), said on Monday. The temblors occurred near Perry, Oklahoma, in the northwestern part of the state, within an area signaled out by regulators for the frequency of earthquakes from oil and gas production activities. The first quake occurred on Saturday, registering at magnitude 4.6…

Enbridge's Line 5 Pipeline Shut Due to Power Outage

Enbridge's Line 5 pipeline was temporarily shut down due to a power outage at its terminal in Superior, Wisconsin, the company said in a statement on Sunday. "Out of an abundance of caution, Enbridge will be electing to leave the line down until the weather conditions improve at the Straits," the company said. The company had, on April 12, said the line was operating normally after damage was discovered on the pipeline in the Straits of Mackinac. The 540,000-barrel-per-day pipeline from Wisconsin to Ontario carries Canadian light crude as well as refined products and is a key link in Enbridge's network…

All Turbines Linked to Grid at Rampion Offshore Wind Farm

(Photo: Rampion Offshore Wind)

All 116 turbines at top German utility E.ON's Rampion offshore wind farm in Britain are now able to generate electricity and are delivering power to the grid, the company said on Tuesday.The 400-megawatt project is being built off the coast of Sussex in southeast England by E.ON, UK Green Investment Rampion Ltd and Canadian energy infrastructure company Enbridge."Over the coming months work will continue both on and offshore, to prepare the site for full operation later this year," E.ON said in a statement.The farm will generate electricity to supply 347…