Shipment company

Enbridge eyeing LNG opportunities as quarterly earnings rise

The Enbridge Center company office is seen in Edmonton, Alberta, Canada October 6, 2021. REUTERS/Todd Korol/File Photo

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May 6 (Reuters) – Canadian energy pipeline company Enbridge Inc (ENB.TO) on Friday reported higher first-quarter profits and outlined expansion plans as global demand for liquefied natural gas (LNG) rises. increases following the Russian invasion of Ukraine.

Europe is working to replace Russian gas and improve long-term energy security by becoming less dependent on supplies controlled by Moscow.

This has led to record LNG export volumes to the United States this year and renewed interest in expanding the Canadian LNG industry beyond a single Shell-led facility (SHEL. L) under construction in Kitimat, northern British Columbia.

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“LNG exports are a big opportunity, with momentum building on the U.S. Gulf Coast, and now even more so in western Canada,” said Enbridge CEO Al Monaco. , during a conference call.

Enbridge already supplies about 2 billion cubic feet per day (bcf/d) of gas to four LNG plants on the Gulf Coast. Monaco said the company has signed deals to supply three more Gulf Coast projects that could add up to 7 billion cubic feet/d of gas and more than $2 billion in new investment.

In Western Canada, Enbridge has launched an open season to gauge shipper demand for a C$1 billion ($777.24 million) expansion of the T-North section of its natural gas pipeline system in Columbia. to support the growing production and demand for LNG from the West Coast.

The company is also targeting an opening season on its T-south section later this year, provided the new Woodfibre LNG project in Squamish goes ahead as planned. Woodfibre, a subsidiary of Pacific Energy Ltd, issued a notice to proceed to its main contractor last month.

“With growing demand in Europe for US LNG, Western Canada can step in to fill it,” Monaco added.

The company also said it will jointly develop a low-carbon hydrogen and ammonia production and export facility with energy holding company Humble Midstream, at its Ingleside Energy Center (EIEC) in Texas.

Increased demand for oil and gas boosted Enbridge Calgary pipeline volumes in the first quarter. The company transports approximately 20% of all gas consumed in the United States and most of Canada’s crude oil exports south of the border.

Adjusted earnings were C$1.7 billion ($1.33 billion), or 84 cents Canadian per share, in the three months to March 31, from C$1.63 billion, or 81 cents Canadians per share a year earlier.

($1 = 1.2827 Canadian dollars)

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Reporting by Rithika Krishna; Editing by Rashmi Aich and Richard Chang

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