Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Canada's Enbridge eyes market share as competitors' pipes in limbo

Published 2017-06-08, 02:22 p/m
© Reuters.  Canada's Enbridge eyes market share as competitors' pipes in limbo
KMI
-
ENB
-
SEP
-

CALGARY, Alberta, June 8 (Reuters) - Canada's Enbridge Inc ENB.TO ENB.N will take advantage of the uncertainty facing competitors' pipelines to gain market share, including starting early discussions on a new tolling agreement after 2022, a senior executive said on Thursday.

Speaking at an investors event in Toronto, Enbridge Executive Vice President Guy Jarvis did not name the rivals, saying only that customers still seek capacity amid the "lingering uncertainty around when and even if competing pipelines will ever come online."

An election in the Canadian province of British Columbia last month has complicated Kinder Morgan (NYSE:KMI) Inc's KMI.N Trans Mountain pipeline expansion, with the two parties set to take power vowing to block the project.

TransCanada's Keystone XL pipeline project through the United States has presidential approval, but still needs permission from the state of Nebraska. The company's Energy East project to Canada's Atlantic coast had been mired in controversy, its regulatory review process suspended.

"We see a window of opportunity emerging now to start early discussions with our customers on a post-CTS tolling agreement," said Jarvis, referring to Enbridge's 10-year competitive tolling settlement for its Mainline system reached in 2011.

Enbridge, North America's largest energy infrastructure company, has forecast a rise in adjusted earnings this year following its purchase of Spectra Energy Corp (F:SEP).

Jarvis said the company will take advantage of its now larger scale and plans a possible expansion for its 280,000 barrel-per-day Express Pipeline that had once been Spectra's.

Enbridge is "laser-focused" in bringing online projects including its Line 3 Replacement Program from Hardisty, Alberta, to Superior, Wisconsin, Jarvis said.

"It's critical that we get it in service given the continuing uncertainties about competing pipelines," he said. "It then sets the foundation for developing the continued expansion of options on our Mainline."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.