From British Columbia (BC) to the Gulf of Mexico, accelerating global trade in liquefied natural gas (LNG) has emerged as the growth driver for the Enbridge Inc. pipeline network, CEO Al Monaco said.

enbridge lng

“It’s clear we are at an inflection point in global energy markets,” Monaco said in delivering 1Q2022 results. “Demand continues to grow, which combined with underinvestment in new supply, is driving energy shortages and higher prices.”

At the same time, the move toward net-zero carbon has prompted the pipeline, utility and power conglomerate into project work to advance its energy transition to cut greenhouse gas emissions.

“The current environment reinforces that our two-pronged strategy to advance both conventional and low-carbon energy investments is a prudent approach,” said Monaco.

The midstream giant reports in Canadian dollars (C$100/US 80 cents).

In BC, Enbridge announced a capacity auction for a $1 billion addition for 400 MMcf/d on the northern leg of the West coast system to feed the Shell plc-led LNG Canada project under construction in Kitimat.

Feeding Gulf Coast LNG

On the Gulf Coast, Enbridge already is developing the Cameron Extension Project in Louisiana to transport feed gas to Venture Global LNG Inc.’s Calcasieu Pass LNG terminal in Louisiana, which is under construction.

The pipeline giant has since clinched agreements to build delivery for three more proposed LNG terminals on the Gulf Coast. They include Venture’s Plaquemines LNG facility in Louisiana, NextDecade Inc.’s proposed Rio Grande facility, and the Texas LNG Brownsville LLC project. Rio Grande and Texas LNG each are to be sited in South Texas once sanctioned.

Meanwhile, advancing low-carbon goals are in the queue.

Enbridge said Friday it is partnering with Denver-based Humble Midstream LLC to design a hydrogen and ammonia production addition at Enbridge’s Ingleside Energy Center oil export site in South Texas. The proposed project would rely on natural gas.

“Up to 95% of the carbon dioxide generated in the production process will be sequestered in newly developed carbon capture infrastructure,” according to the partners.

“This is a good example leveraging existing conventional assets and capabilities to extend growth and capitalize on low carbon opportunities in the energy transition,” said Enbridge Vice President Colin Gruending. 

The South Texas project would be a counterpart to Enbridge’s Wabamun Carbon Hub, a carbon capture, use and storage project planned in Alberta. Wabamum earlier this year qualified as a bidder for a provincial government-owned geology formation.

Enbridge reported first quarter earnings of slightly more than $1.9 billion (95 cents/share), flat from year-ago profits of $1.9 billion (94 cents).