Enbridge Inc. has assured shareholders that it would stay strong by adapting to the energy transition even as the Canadian midstream giant faces ongoing opposition from fossil fuel foes over its projects.
“We believe that in all practical scenarios our assets will remain critical to supporting long-term energy demand,” said Enbridge President Al Monaco as the firm’s Calgary head office released mid-year financial results.
“Existing infrastructure is going to play a key role in the transportation and storage of future energy supplies, ensuring affordable and reliable access to conventional and low-carbon energy.”
Enbridge reported that the biggest, most contested item on its project agenda – the $2.6-billion Minnesota leg in its Line 3 oil pipe replacement project – has stayed on track by defeating court challenges and surviving right-of-way protest rallies.
“With the Canadian, North Dakota and Wisconsin segments complete, and Minnesota construction progressing well, we expect Line 3 to be fully in service during the fourth quarter,” Monaco said. “Line 3 is first and foremost a critical integrity project that will improve safety and further reduce environmental risks.”
Financial gains from the project are expected by the end of this year as shippers pay tolls to use the new pipe that will add 370,000 barrels daily to Line 3 capacity by enabling it to restore full operating pressure after a decade of safety restrictions on the old conduit.
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, and overseas in France.
The portfolio includes early forays into “self-power” conversions of the Enbridge network that use electric hardware energized by wind turbines, an adaptation to evolving climate change policy aiming to reduce greenhouse gas emissions.
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. 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.
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