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Researched by Industrial Info Resources (Sugar Land, Texas)--Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) Chief Executive Officer Albert Monaco gave updates on the company's major projects on a recent earnings conference call. Among the projects discussed was Enbridge's $7 billion Line 3 replacement program, which seeks to replace more than 1,000 miles of the existing Line 3 crude oil pipeline with new pipeline and associated facilities from Hardisty, Alberta, to Superior, Wisconsin. Earlier this month, an administrative law judge (ALJ) in Minnesota ruled that a need for the project existed, but suggested it should follow an alternative route rather than Enbridge's preferred route in Minnesota.
Monaco said that in Canada, about 40% of the pipe for the Line 3 project was in the ground and that work on the project was complete in Wisconsin. "The project needs to be done because it replaces an existing line with brand new, modernized infrastructure... It also provides critical supply to U.S. consumers, and that is in everybody's interests. The ALJ report clearly acknowledges those factors and the need to replace the line--that was a very good outcome. But by now, you know we disagree with the ALJ's recommended route, which would require an in-trench replacement on the existing right-of-way, which in our view introduces safety, environmental, cultural and economic risk," Monaco said.
Click on the image at right for a slide from Enbridge's recent presentation on the Line 3 project showing the differences in the preferred and recommended routes, as well as reasons why Enbridge believes its preferred route should be selected.
Monaco said choosing the ALJ's proposed route would cause Line 3 to shut down for nine to 12 months or more, "and surely, shutting down 400,000 barrels a day (BBL/d) is in nobody's interest, including the people of Minnesota, who would be affected by higher gasoline prices. ... We're optimistic the PUC [Public Utilities Commission] will see things the same way and approve the replacement of the Line 3 as currently designed when they hold their hearing later in June." Enbridge claims its preferred route would run through less populated areas and fewer ecologically sensitive areas, among other things. The Minnesota portion of the project could kick off late this summer, for completion in the first half of 2019. For more information, see Industrial Info's project report on the Minnesota portion of the Line 3 replacement.
Monaco also gave updates on some of the company's other projects. Construction began on Enbridge's Nexus natural gas pipeline earlier this year. The 250-mile pipeline will transport up to 1 billion cubic feet per day (Bcf/d) of natural gas from Ohio to interconnect with the existing Vector Pipeline System in Highland, Michigan. Monaco said the project was about 20% complete and he expected the pipeline to be in service in the third quarter of this year. The project has an overall total investment value (TIV) of $590 million. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering, procurement and construction. For more information, see Industrial Info's project reports on the Michigan and Ohio segments of the pipeline.
The company's Valley Crossing natural gas pipeline will run 168 miles from the Agua Dulce gas hub in Nueces County, Texas, to interconnect with the Sur de Pas-Tuxpan Pipeline, a subsea pipeline being built by TransCanada Corporation (NYSE:TRP) (Calgary) in Mexico. Monaco said, "Valley Crossing in South Texas will be a critical link to serve growing gas-fired power demand in Mexico. Construction on the onshore segment is substantially complete, with work underway on the offshore portion of the line right now." Construction is expected to wrap up in the fourth quarter of this year. Strike Construction (Spring, Texas) is the general contractor. For more information, see Industrial Info's project reports on the Valley Crossing Pipeline and Sur de Texas-Tuxpan Pipeline.
Enbridge reported net earnings of C$445 million ($348 million) in first-quarter 2018, compared with C$638 million ($499 million) in first-quarter 2017. Industrial Info is tracking more than $18.8 billion in active Enbridge projects.
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.
Monaco said that in Canada, about 40% of the pipe for the Line 3 project was in the ground and that work on the project was complete in Wisconsin. "The project needs to be done because it replaces an existing line with brand new, modernized infrastructure... It also provides critical supply to U.S. consumers, and that is in everybody's interests. The ALJ report clearly acknowledges those factors and the need to replace the line--that was a very good outcome. But by now, you know we disagree with the ALJ's recommended route, which would require an in-trench replacement on the existing right-of-way, which in our view introduces safety, environmental, cultural and economic risk," Monaco said.
Click on the image at right for a slide from Enbridge's recent presentation on the Line 3 project showing the differences in the preferred and recommended routes, as well as reasons why Enbridge believes its preferred route should be selected.Monaco said choosing the ALJ's proposed route would cause Line 3 to shut down for nine to 12 months or more, "and surely, shutting down 400,000 barrels a day (BBL/d) is in nobody's interest, including the people of Minnesota, who would be affected by higher gasoline prices. ... We're optimistic the PUC [Public Utilities Commission] will see things the same way and approve the replacement of the Line 3 as currently designed when they hold their hearing later in June." Enbridge claims its preferred route would run through less populated areas and fewer ecologically sensitive areas, among other things. The Minnesota portion of the project could kick off late this summer, for completion in the first half of 2019. For more information, see Industrial Info's project report on the Minnesota portion of the Line 3 replacement.
Monaco also gave updates on some of the company's other projects. Construction began on Enbridge's Nexus natural gas pipeline earlier this year. The 250-mile pipeline will transport up to 1 billion cubic feet per day (Bcf/d) of natural gas from Ohio to interconnect with the existing Vector Pipeline System in Highland, Michigan. Monaco said the project was about 20% complete and he expected the pipeline to be in service in the third quarter of this year. The project has an overall total investment value (TIV) of $590 million. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering, procurement and construction. For more information, see Industrial Info's project reports on the Michigan and Ohio segments of the pipeline.
The company's Valley Crossing natural gas pipeline will run 168 miles from the Agua Dulce gas hub in Nueces County, Texas, to interconnect with the Sur de Pas-Tuxpan Pipeline, a subsea pipeline being built by TransCanada Corporation (NYSE:TRP) (Calgary) in Mexico. Monaco said, "Valley Crossing in South Texas will be a critical link to serve growing gas-fired power demand in Mexico. Construction on the onshore segment is substantially complete, with work underway on the offshore portion of the line right now." Construction is expected to wrap up in the fourth quarter of this year. Strike Construction (Spring, Texas) is the general contractor. For more information, see Industrial Info's project reports on the Valley Crossing Pipeline and Sur de Texas-Tuxpan Pipeline.
Enbridge reported net earnings of C$445 million ($348 million) in first-quarter 2018, compared with C$638 million ($499 million) in first-quarter 2017. Industrial Info is tracking more than $18.8 billion in active Enbridge projects.
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.
