Saturday, June 23, 2018

Enbridge News

Enbridge Eyes Additional Asset Sales

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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

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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.

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 Starts Valley Crossing Natgas Pipe Work at Tex-Mex Border

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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.

FTC Okays Enbridge-Spectra with Conditions

Canada's Enbridge Inc and Spectra Energy Corp have won U.S. antitrust approval to merge with conditions, the Federal Trade Commission said on Thursday.   (Reporting by Diane Bartz)

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.

A Great Lakes Pipeline Stirs New Protest

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The growing protest movement against U.S. oil and gas pipelines has so far focused on stopping or delaying new construction, with some high-profile successes. Now, in Michigan, a broad coalition of opponents is entering a new frontier: Pushing to rip out and reroute an existing pipeline - Enbridge Inc.'s aging Line 5, which crosses the Straits of Mackinac. They fear the pipeline will leak into the Great Lakes, which contain about a fifth of the world’s fresh water and sustain the state’s second- and third-largest industries, agriculture and tourism.

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 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.

Michigan Fires Contractor Doing Enbridge Pipeline Risk Analysis

The U.S. State of Michigan said on Wednesday it has fired a consultant after state officials discovered a conflict of interest with an employee of the company conducting an independent analysis on the risks of an oil spill from Calgary-based Enbridge Inc's Line 5 pipeline in the Great Lakes. The company, Det Norske Veritas Inc, was to produce a risk analysis by the end of June on Enbridge's 540,000 barrel per day Line 5 pipeline, which travels underwater through the Straits of Mackinac. That report will no longer be delivered, said Melody Kindraka, a public information officer with the Michigan Department of Environmental Quality.

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 to Buy into EnBW Offshore Wind Park Project

Canadian energy firm Enbridge has won the auction for a stake in EnBW's Hohe See, one of Europe's largest offshore wind power projects, a person familiar with the matter told Reuters on Tuesday. Once completed, Hohe See, expected to cost as much as 2 billion euros ($2.24 billion), will produce enough power to supply about 560,000 homes. EnBW plans to make a final investment decision towards the end of the year. Sources had told Reuters in July that Enbridge and Australia's Macquarie were both vying for the stake of up to 49.9 percent. A second…

Enbridge's Sandpiper Prospects Dimming

The long-planned and oft-delayed Sandpiper pipeline through the U.S. Midwest may not be dead, but it appears to be on life support, a likely casualty of the oil-and-gas industry's infrastructure overbuild amid a two-year global oil rout. After years of delays, refiner Marathon Petroleum Corp and midstream giant Enbridge Inc on Tuesday announced they would scrap their joint venture agreements and transportation services for the 450,000 barrels per day Sandpiper project, instead agreeing to acquire a portion of the rival Dakota Access Pipeline.

Enbridge Shares Climb After $2.3 bln in Asset Sales

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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'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.

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…

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

Canada to Rule on Two Pipelines; Kinder Morgan Still Up In Air

Canada will this week decide the fate of two Enbridge Inc pipelines but is keeping quiet about its verdict on Kinder Morgan Inc's plans to more than double the capacity of its Trans Mountain line, a move environmentalists strongly oppose. The Liberal government is widely expected to veto Enbridge's Northern Gateway pipeline from Alberta's oil sands to the province of British Columbia on the Pacific Coast. Prime Minister Justin Trudeau has long opposed the project, citing the proposed routing through a rain forest. Ottawa does look set to allow Enbridge to replace the Canadian segments of its Line 3, which takes crude from Alberta to Wisconsin.

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…