Enbridge: North America Key for Global Energy Security

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

With assets in both the United States and in Canada, energy company Enbridge says North America can keep supplies moving. The company has a role in Canada's LNG export ambitions.

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North America Has the Reinforcements

North American energy can play a critical role in ensuring the world has adequate supplies given the conflict raging in the Middle East, the head of Canadian energy company Enbridge said.

Industrial Info has been monitoring ongoing developments, from refinery issues to the global shortage of liquefied natural gas (LNG), since fighting began late February. An exchange of fire between U.S. and Iranian naval forces on Friday threatened a tacit truce.

Greg Ebel, the president and chief executive officer of Canadian energy company Enbridge, said Friday that his company can play a pivotal role in ensuring global energy security given its diverse portfolio, from LNG to crude oil.

"North America's role in the global energy system has become increasingly critical. Recent geopolitical developments, including the conflict involving Iran, have reinforced the importance of energy security, positioning both Canada and the United States to increasingly supply reliable energy to global markets," he said.

Ebel added that market volatility because of the war was the highest in decades, with wild market swings and shifting narratives creating substantial headwinds for the energy sector, though Enbridge managed to make strides so far this year.

In April, Enbridge and its subsidiary Bakken Pipeline Company secured U.S. federal approval to continue operating pipeline facilities along the U.S.-Canadian border in North Dakota and Michigan. The White House also permitted Bakken Pipeline to perform any needed construction--including new pipelines--at its facilities in Burke County, North Dakota, located along the border.

Elsewhere, the company is building pipeline replacements and a new water body-crossing tunnel in Mackinaw City, Michigan, part of a broader regional artery. The company aims to replace four miles of the network to carry 540,000 barrels per day (bpd) across the Straits of Mackinac, which connects Michigan's two peninsulas.

Exports From Canada

In Canada, the company said it's planning expansions to various midstream infrastructure that could support the Woodfibre LNG facility slated for British Columbia. Woodfibre is a joint venture between Pacific Energy and Enbridge.

Project planners last month marked the arrival of the 15th liquefaction module for the facility. Nineteen are scheduled for a plant that could see construction completed as early as 2027. Industrial Info Resources finds the Woodfibre LNG project has a total investment value of US$5.5 billion.

Rather than firing its turbines with natural gas, Woodfibre will use electricity, leaving it with a lower environmental footprint relative to its peers. It has a design capacity of 2.1 million tons per year of gas in the liquid form, and would complement the handful of LNG projects slated for the western shores of Canada.

Canada is ahead of the game in terms of delivering LNG from its western shores. The LNG Canada facility already is exporting to Asian markets at a time when supplies of the super-cooled gas are limited because of the war.

The head of Enbridge said his company remains committed to ensuring North America remains positioned as a global leader in energy development.

"This is a pivotal moment for our industry, and Enbridge is exceptionally well positioned to deploy its C$10 billion to C$11 billion (US$7.3 billion-US$8 billion) annual investment capacity to generate durable, long term value for shareholders while delivering safe and reliable service to our customers and communities," Ebel said.

Enbridge reported that its adjusted net earnings during the first quarter declined C$112 million (US$89.9 million) to C$2.1 billion (US$1.5 billion). The company blamed the expiration of some tax credits for renewable energy programs for the decline.

By the Numbers

• C$10 billion annual investment capacity for Enbridge
• 2.1 million tons of LNG export capacity supported by the company

Key Takeaways

• North America essential for global energy security
• Enbridge has a vast portfolio that covers oil and gas across the United States and Canada.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).