Monday, December 10, 2018

Enbridge News

Canada-US Pipelines Restart After Weather Disruptions

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Two major pipelines carrying oil from Canada to the United States resumed operations on Wednesday after brief disruptions due to power outages from severe weather in Saskatchewan, Canada, a day earlier.A number of lines on Enbridge Inc's Mainline system, which carries about 1.2 million barrels per day of crude and other liquids, and TransCanada Corp's 590,000 bpd Keystone crude pipeline were hit by power outages on Tuesday in the western Canadian province.TransCanada's Keystone pipeline was operational on Wednesday after it experienced a brief outage due to power disruptions…

E.on Officially Opens Rampion Offshore Wind Farm

Image: E.ON SE

The 400-MW Rampion offshore wind farm off the Sussex coast in the UK has been officially opened, said German energy company E.on SE. The offshore wind farm now generating enough green electricity for around 350,000 UK homes setting a new power record in the country.Three years of construction officially came to an end on Saturday (November 29) at a ribbon cutting ceremony for the Rampion offshore wind farm, the first wind farm off the UK's south coast.Named after the county flower of Sussex, the offshore wind farm, over the next 25 years,…

Canadian Drillers Expect Flat Year

Photo: Canadian Association of Oilwell Drilling Contractors - CAODC

The Canadian Association of Oilwell Drilling Contractors (CAODC) said that the Canadian oil and gas industry is simply too dysfunctional to anticipate any kind of quick recovery.As a result, Canadian service companies are exploring any and all options to generate positive cash flows, said CAODC President, Mark Scholz."Our members are on life support," says Scholz. "With the exception of perhaps Venezuela, Canada is the only oil and gas producing jurisdiction in the world that cannot at the very least see a recovery on the horizon. We have among the highest standards for responsible development in the world…

Norway Eyes Offshore Wind to Power Gas Plant

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Norwegian gas system operator Gassco and Canadian energy firm Enbridge are working on reviving a 350 megawatt (MW) offshore wind project to boost power supply security at Norway's Nyhamna gas processing plant, they told Reuters.The project, which would be the country's first offshore wind farm, is called Havsul 1 and was fully licensed by Norwegian energy regulators in 2009 before being abandoned in 2012 due to profitability concerns and insufficient subsidies.Nyhamna is one of Norway's biggest gas processing plants, handling output from Shell's Ormen Lange field.

Canadian Oil & Gas Drilling Slipping

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Canadian drilling activity will fall 5 percent in 2019, as deep price discounts discourage production, an industry group forecast on Thursday.Canadian oil producers are collecting prices that are much lower than the U.S. benchmark due to severe pipeline bottlenecks, and weak prices may lead producers to limit drilling budgets in the world's fifth-largest oil-producing country.The Petroleum Services Association of Canada (PSAC) forecast that 6,600 wells will be drilled in 2019, the fewest in three years and down from an estimated 6,980 this year.

Enbridge's Profit Beats Estimates

(Photo: Enbridge)

Enbridge Inc, Canada's largest pipeline operator, topped analysts' estimates for quarterly profit on Friday, as the company transported more oil on its Mainline system that runs from western Canada to the United States.The company said it moved 2.58 million barrels per day (bpd) of crude oil on its Mainline system during the quarter, up from 2.49 million bpd a year earlier.Canada's oil producers are desperate for new export pipelines, as rising production and tight capacity on existing pipelines has led to Canadian crude trading at a wide discount to the West Texas Intermediate benchmark.Enbridge has aggressively sold assets this year…

Enbridge to Put More of Ohio TEAL Natgas Pipe Into Service

© Denys Prykhodov / Photo: Adobe Stock

Canadian energy company Enbridge Inc on Wednesday sought permission from U.S. energy regulators to put the remaining part of its Texas Eastern Appalachian Lease (TEAL) Phase 1 natural gas pipeline in Ohio into service.In a filing with the U.S. Federal Energy Regulatory Commission (FERC), Enbridge said it expects to complete work on the last part of the $200 million TEAL project by Oct. 26 and would like FERC to approve of its request by Oct. 30.The facilities Enbridge is seeking to put into service include about 4.4 miles (7.1 kilometers)…

British Columbia Natgas Exports to Washington Rise Slowly After Pipe Blast

© Jim / Adobe Stock

The amount of natural gas moving from British Columbia to Washington state through the Sumas hub edged up over the weekend after Enbridge Inc last week returned a pipeline to service following a pipe blast in British Columbia.The reduction in the amount of gas flowing through the point, however, caused prices at the hub to rocket to their highest since 2014.Enbridge returned a 30-inch (76-centimeter) gas pipe in British Columbia that was shut after a fire on an adjacent 36-inch line on Oct. 9, leading to supply disruptions in British Columbia and Washington.Enbridge said Sunday it was building a road to bring equipment to the site of the blast to fix the damaged pipe.

Andeavor Shuts Washington Refinery Units Due to Disruption

Andeavor on Thursday said it has begun shutting various units at its 120,000 barrel-per-day Anacortes, Washington refinery due to a disruption in natural gas supply to the plant following an upset in a third party pipeline.* A fire on a 36-inch Enbridge Inc pipeline, which carries gas to the Pacific Northwest, has resulted in disruptions for refineries in the state of Washington.Reporting by Arpan Varghese

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…

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.

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.

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…

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.

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

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.

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.

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…

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…

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…