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Released May 12, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta), Canada's largest pipeline company, is now North America's largest energy infrastructure company following its acquisition of Spectra Energy Corporation earlier this year. While its liquids pipeline business recently reported a dip in business due to business- and weather-related factors, executives say they are looking forward to $27 billion in capital projects, including $2.4 billion worth brought into service so far this year. Industrial Info is tracking almost $27 billion in active projects involving Enbridge.
First-quarter earnings stood at $638 million, almost half of what Enbridge reported in first-quarter 2016. But for the full year, executives expect to see earnings of between $7.2 billion and $7.6 billion, driven by the acquisition of Spectra, compared with $4.7 billion for 2016.
Among the projects brought into service in the past quarter was the Athabasca Twin pipeline, which runs from near Fort McMurray, Alberta, to near Hardisty, Alberta. Alongside a portion of that project, Enbridge is at work on the $40 million extension of the Wood Buffalo Pipeline near Fort McMurray, which runs about 65 miles between two Enbridge terminals and is designed to transport 800,000 barrels per day (BBL/d) of crude oil from Alberta's oil sands. For more information, see Industrial Info's project report.
Enbridge also has about $290 million in pump stations under construction to support the existing portion of the Wood Buffalo Pipeline, including a $40 million Cheecham station near Fort McMurray, a $50 million station in Vermilion, a $50 million station in Elk Point, a $50 million station near Lynton, a $50 million Kehew station in Lac La Biche and a $50 million Sunday Creek station in Fort McMurray. The stations will support an additional 60,000 BBL/d on the existing portion, which will be transported on to the extension. For more information, see Industrial Info's project reports on the Cheecham, Vermilion, Elk Point, Lynton, Kehew and Sunday Creek stations.
Also in Alberta, Enbridge is wrapping up its $400 million Norlite diluent pipeline, which runs 303 miles from Fort Saskatchewan to Fort McMurray. It currently transports up to 270,000 BBL/d, and is designed to be expandable to 400,000 BBL/d. For more information, see Industrial Info's project report.
Spectra Acquisition, Expansions to Add Significantly to U.S. Assets
January and February are high-gas volume months for Enbridge and other pipeline companies, and provide a significant chunk of the full year's earnings. Enbridge's takeover of Spectra closed at the end of February, so the quarter's results include only one month of contributions from the new subsidiary. Along with unexpectedly warm weather in southern Ontario, which represents a large geographic portion of Enbridge's customer base, this was cited as a major factor in the lower quarterly results.
Enbridge's North Dakota system reported lower average transportation rates and volumes. On the other hand, deliveries on the full Lakehead System, which is managed by U.S. affiliate Enbridge Energy Partners LP (NYSE:EEP) and includes all existing Enbridge lines in the U.S., hit a record 2.74 million BBL/d. North Dakota also is home to one of Enbridge's most closely watched recent acquisitions.
"In February 2017, Enbridge closed the acquisition of a 27.6% interest in the Bakken Pipeline System," the company said in a press release announcing quarterly earnings. "The system consists of the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline projects, and connects the prolific Bakken formation in North Dakota to eastern PADD II and the United States Gulf Coast. The pipelines are expected to go into service in the second quarter of 2017."
Enbridge also is proposing a $168 million pipeline replacement program in North Dakota, which would replace 12 miles of 34-inch-diameter line, running from Joliette, North Dakota, to the North Dakota-Minnesota border, with a 36-inch-diameter line. The new pipe would have an 830,000-BBL/d capacity for light crude, heavy crude and synthetic crude oil. It would be accompanied by a $60 million pump station in Joliette, North Dakota, for the new line. For more information, see Industrial Info's project reports on the pipeline replacement and pump station.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
First-quarter earnings stood at $638 million, almost half of what Enbridge reported in first-quarter 2016. But for the full year, executives expect to see earnings of between $7.2 billion and $7.6 billion, driven by the acquisition of Spectra, compared with $4.7 billion for 2016.
Among the projects brought into service in the past quarter was the Athabasca Twin pipeline, which runs from near Fort McMurray, Alberta, to near Hardisty, Alberta. Alongside a portion of that project, Enbridge is at work on the $40 million extension of the Wood Buffalo Pipeline near Fort McMurray, which runs about 65 miles between two Enbridge terminals and is designed to transport 800,000 barrels per day (BBL/d) of crude oil from Alberta's oil sands. For more information, see Industrial Info's project report.
Enbridge also has about $290 million in pump stations under construction to support the existing portion of the Wood Buffalo Pipeline, including a $40 million Cheecham station near Fort McMurray, a $50 million station in Vermilion, a $50 million station in Elk Point, a $50 million station near Lynton, a $50 million Kehew station in Lac La Biche and a $50 million Sunday Creek station in Fort McMurray. The stations will support an additional 60,000 BBL/d on the existing portion, which will be transported on to the extension. For more information, see Industrial Info's project reports on the Cheecham, Vermilion, Elk Point, Lynton, Kehew and Sunday Creek stations.
Also in Alberta, Enbridge is wrapping up its $400 million Norlite diluent pipeline, which runs 303 miles from Fort Saskatchewan to Fort McMurray. It currently transports up to 270,000 BBL/d, and is designed to be expandable to 400,000 BBL/d. For more information, see Industrial Info's project report.
Spectra Acquisition, Expansions to Add Significantly to U.S. Assets
January and February are high-gas volume months for Enbridge and other pipeline companies, and provide a significant chunk of the full year's earnings. Enbridge's takeover of Spectra closed at the end of February, so the quarter's results include only one month of contributions from the new subsidiary. Along with unexpectedly warm weather in southern Ontario, which represents a large geographic portion of Enbridge's customer base, this was cited as a major factor in the lower quarterly results.
Enbridge's North Dakota system reported lower average transportation rates and volumes. On the other hand, deliveries on the full Lakehead System, which is managed by U.S. affiliate Enbridge Energy Partners LP (NYSE:EEP) and includes all existing Enbridge lines in the U.S., hit a record 2.74 million BBL/d. North Dakota also is home to one of Enbridge's most closely watched recent acquisitions.
"In February 2017, Enbridge closed the acquisition of a 27.6% interest in the Bakken Pipeline System," the company said in a press release announcing quarterly earnings. "The system consists of the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline projects, and connects the prolific Bakken formation in North Dakota to eastern PADD II and the United States Gulf Coast. The pipelines are expected to go into service in the second quarter of 2017."
Enbridge also is proposing a $168 million pipeline replacement program in North Dakota, which would replace 12 miles of 34-inch-diameter line, running from Joliette, North Dakota, to the North Dakota-Minnesota border, with a 36-inch-diameter line. The new pipe would have an 830,000-BBL/d capacity for light crude, heavy crude and synthetic crude oil. It would be accompanied by a $60 million pump station in Joliette, North Dakota, for the new line. For more information, see Industrial Info's project reports on the pipeline replacement and pump station.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
