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Released August 06, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Pipeline operator Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) lifted its second-quarter net income from C$919 million ($707.7 million) in 2017 to $1.07 billion ($824 million) in 2018. The company is progressing with a C$22 billion ($16.9 billion) capital program and expects C$7 billion ($5.4 billion) of projects to go into service this year. Industrial Info is tracking $18.6 billion in active Enbridge projects.
In a conference call regarding the quarter, Enbridge Chief Executive Officer Al Monaco gave updates on some of the company's projects. Among the projects planned for completion this year is Enbridge's NEXUS natural gas pipeline, which will carry approximately 1.5 billion cubic feet per day (Bcf/d) of gas from the Utica shale to hubs in Ohio, Michigan and Ontario. Monaco said, "NEXUS construction is going very well in Michigan and Ohio. We're about 80% done here overall, and we're on track for late Q3 in-service." Monaco said there is strong interest in interconnects along the line. Construction on the $1.5 billion pipeline began earlier this year, with Fluor Corporation (NYSE:FLR) (Irving, Texas) providing engineering, procurement and construction. For more information, see Industrial Info's project reports on the Ohio and Michigan portions of the pipeline.
The other major project Enbridge expects to go into service this year is the Valley Crossing natural gas pipeline, which will transport up to 2.6 Bcf/d of gas from Texas to Mexico. Monaco said, "Valley Crossing is another big project for us in South Texas that links low-cost U.S. supply with growing gas-fired power demand in Mexico. It's part of the network now that we're building out in the Gulf Coast region to capitalize on gas export momentum, which as everyone knows, I think, is going to drive the North American opportunity set in the future. Construction is pretty much complete there, and we should be ready accept deliveries in Q4." The pipeline will run from the header of the Agua Dulce hub in Nueces County, Texas, to the Sur de Pas-Tuxpan subsea pipeline that will extend into Mexico. Strike Construction LLC (Spring, Texas) is the general contractor for the Valley Crossing Pipeline. For more information, see Industrial Info's project reports on the Valley Crossing Pipeline and the Sur de Pas-Tuxpan Pipeline.
Monaco spoke at length about the largest project in the company's history, the Line 3 crude oil pipeline replacement program, which will replace pipeline from Hardisty, Alberta, to Superior, Wisconsin. One of the final states to hold out on approval of the project was Minnesota. In late June, the Minnesota Public Utilities Commission (PUC) gave approval for a pipeline route that closely matched Enbridge's preferred route for the project.
Monaco said, "After a rigorous process that included a full EIS [environmental impact statement] and extensive input from all stakeholders, the PUC approved a certificate of need and route permit. The benefits of Line 3 are significant to everybody. Line 3 replaces critical infrastructure with the latest in steel technology and construction methods, and it will be a world-class project. Local and regional refiners are assured of reliable supply. The PUC-approved route is virtually the same as our preferred route, which minimizes environmental impact, disruption to land owners, and it acknowledges importantly the concerns by Tribal Nations, which we took into account when we designed the route. ... So in terms of what's next, we should see the written order from the PUC by September. We'll be working on state and federal permits through Q4 and expect to be in a position to begin construction in Q1 next year." Monaco said the line should be in service by the second half of 2019. For more information, see Industrial Info's project report on the Minnesota portion of the pipeline.
An Enbridge project still in the early planning stages is the grassroot Line 66 pipeline, which would carry crude oil from the Bakken Shale and Alberta Oil Sands from Illinois and Wisconsin for transport to Cushing, Oklahoma. The project would involve constructing roughly 400 miles of pipeline and could begin late next year, taking about two years to complete. For more information, see Industrial Info's project reports on the Wisconsin and Illinois sections of the pipeline.
Last month, Enbridge announced that it would sell off its natural gas gathering and processing business in western Canada. For more information, see July 6, 2018, article - Enbridge Makes Progress in Quest to Become Pure-Play Pipeline, Utilities Business.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In a conference call regarding the quarter, Enbridge Chief Executive Officer Al Monaco gave updates on some of the company's projects. Among the projects planned for completion this year is Enbridge's NEXUS natural gas pipeline, which will carry approximately 1.5 billion cubic feet per day (Bcf/d) of gas from the Utica shale to hubs in Ohio, Michigan and Ontario. Monaco said, "NEXUS construction is going very well in Michigan and Ohio. We're about 80% done here overall, and we're on track for late Q3 in-service." Monaco said there is strong interest in interconnects along the line. Construction on the $1.5 billion pipeline began earlier this year, with Fluor Corporation (NYSE:FLR) (Irving, Texas) providing engineering, procurement and construction. For more information, see Industrial Info's project reports on the Ohio and Michigan portions of the pipeline.
The other major project Enbridge expects to go into service this year is the Valley Crossing natural gas pipeline, which will transport up to 2.6 Bcf/d of gas from Texas to Mexico. Monaco said, "Valley Crossing is another big project for us in South Texas that links low-cost U.S. supply with growing gas-fired power demand in Mexico. It's part of the network now that we're building out in the Gulf Coast region to capitalize on gas export momentum, which as everyone knows, I think, is going to drive the North American opportunity set in the future. Construction is pretty much complete there, and we should be ready accept deliveries in Q4." The pipeline will run from the header of the Agua Dulce hub in Nueces County, Texas, to the Sur de Pas-Tuxpan subsea pipeline that will extend into Mexico. Strike Construction LLC (Spring, Texas) is the general contractor for the Valley Crossing Pipeline. For more information, see Industrial Info's project reports on the Valley Crossing Pipeline and the Sur de Pas-Tuxpan Pipeline.
Monaco spoke at length about the largest project in the company's history, the Line 3 crude oil pipeline replacement program, which will replace pipeline from Hardisty, Alberta, to Superior, Wisconsin. One of the final states to hold out on approval of the project was Minnesota. In late June, the Minnesota Public Utilities Commission (PUC) gave approval for a pipeline route that closely matched Enbridge's preferred route for the project.
Monaco said, "After a rigorous process that included a full EIS [environmental impact statement] and extensive input from all stakeholders, the PUC approved a certificate of need and route permit. The benefits of Line 3 are significant to everybody. Line 3 replaces critical infrastructure with the latest in steel technology and construction methods, and it will be a world-class project. Local and regional refiners are assured of reliable supply. The PUC-approved route is virtually the same as our preferred route, which minimizes environmental impact, disruption to land owners, and it acknowledges importantly the concerns by Tribal Nations, which we took into account when we designed the route. ... So in terms of what's next, we should see the written order from the PUC by September. We'll be working on state and federal permits through Q4 and expect to be in a position to begin construction in Q1 next year." Monaco said the line should be in service by the second half of 2019. For more information, see Industrial Info's project report on the Minnesota portion of the pipeline.
An Enbridge project still in the early planning stages is the grassroot Line 66 pipeline, which would carry crude oil from the Bakken Shale and Alberta Oil Sands from Illinois and Wisconsin for transport to Cushing, Oklahoma. The project would involve constructing roughly 400 miles of pipeline and could begin late next year, taking about two years to complete. For more information, see Industrial Info's project reports on the Wisconsin and Illinois sections of the pipeline.
Last month, Enbridge announced that it would sell off its natural gas gathering and processing business in western Canada. For more information, see July 6, 2018, article - Enbridge Makes Progress in Quest to Become Pure-Play Pipeline, Utilities Business.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
