Enbridge Inc. announced the addition of $3 billion in new growth initiatives in the United States in the third quarter. Meanwhile, in Canada, the company has no immediate plans to engage with the new federal Major Projects Office.
During the quarter, the Calgary-based energy infrastructure company approved the $500 million US Southern Illinois Connector project. This project, through expansions to existing pipelines, will facilitate the transportation of 100,000 barrels per day of oilsands crude to Texas.
Colin Gruending, the president of liquids pipelines, likened the Southern Illinois Connector project to a “lead off hitter” in baseball, emphasizing its significance. He highlighted the attractiveness of the U.S. market for Canadian crude, noting that customers prefer the southern direction.
Enbridge also greenlit expansions to its Canyon and Eiger pipelines, along with enhancements to natural gas storage and transmission operations. The company is progressing with its Canadian Mainline Optimization project, with the first phase nearing completion of customer negotiations and a final investment decision expected this quarter for service commencement in 2027.
CEO Greg Ebel emphasized the focus on expanding existing infrastructure for efficiency and quick capacity additions, rather than embarking on new projects. Enbridge views these brownfield opportunities as the most cost-effective way to meet production increases forecasted in the Western Canadian Sedimentary Basin.
Enbridge, a leading Canadian crude oil shipper, is providing advice on the establishment of the Major Projects Office but does not intend to submit its own proposals. Ebel acknowledged the potential benefits of the new office for national interest projects but indicated that Enbridge’s current initiatives are permit-light and do not necessitate engagement with the office.
In its third-quarter financial report, Enbridge reported a decrease in profit and revenue compared to the previous year. The company earned $682 million attributable to common shareholders, or 30 cents per share, in the quarter ended Sept. 30. On an adjusted basis, Enbridge’s earnings per share were 46 cents, down from 55 cents per share a year ago. Operating revenue totaled $14.64 billion, a decline from $14.88 billion in the same quarter last year.