Today, Enbridge Inc. announced it assured shareholders that it would stay strong in the energy transition environment. Particularly, this announcement comes as the Canadian midstream giant faces ongoing backlash from fossil fuel detractors over its projects.
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In this sense, Enbridge President Al Monaco said as the firm’s Calgary head office released mid-year financial results; “Indeed, we believe that in all practical scenarios our assets will remain critical to supporting long-term energy demand.”
Comments at Enbridge
Moreover, “existing infrastructure is going to play a key role in the transportation and storage of future energy supplies; thus, ensuring affordable and reliable access to conventional and low-carbon energy,” Monaco continued.
Worth noting, Enbridge recently reported that its most significant project is the most contested item on its project agenda. Accordingly, the $2.6-billion Minnesota leg in its Line 3 oil pipe replacement project has stayed on track by defeating court challenges. Besides, it has been surviving right-of-way protest rallies.
Thus, Monaco continued, “with the Canadian, North Dakota and Wisconsin segments complete, and Minnesota construction progressing well; we indeed expect Line 3 to be fully in service during the fourth quarter. Noteworthy, Line 3 is first and foremost a critical integrity project that will improve safety and further reduce environmental risks.”
As Natural Gas Intelligence reports, Enbridge expects financial gains from the project by the end of this year; particularly, as shippers pay tolls to use the new pipe that will add 370,000 barrels daily to Line 3 capacity. Specifically, this will be possible by enabling it to restore full operating pressure after a decade of safety restrictions on the old conduit.
Earnings in the energy transition
Lastly, Monaco added that Enbridge continues to advance a C$17-billion array of pipeline, gas utility, hydrogen, and renewable power projects across Canada and the United States. Besides, it will continue working on its ongoing plan overseas in France.
Accordingly, this portfolio includes early forays into “self-power” conversions of the Enbridge network. Specifically, they use electric hardware energized by wind turbines, adapting to evolving climate change policy aiming to reduce greenhouse gas emissions.
Finally, NGI reported that Enbridge booked earnings of C$3.294 billion ($2.635 billion) or C$1.63/share ($1.30/share) for the first six months of this year. Moreover, the company’s performance to date in 2021 is a 15-fold increase from earnings of C$218 million ($174.4 million); or 10 Canadian cents/share (eight cents/share) in the first-half 2020 economic slump inflicted by the Covid-19 pandemic.
