Enbridge says chances of building Northern Gateway this year 'remote'

CALGARY -- The CEO of Enbridge said Friday he doesn't expect to meet a deadline to begin construction of the Northern Gateway pipeline this year and the Calgary-based company will likely seek an extension.

See Full Article

Al Monaco said Enbridge is still working to satisfy the 209 conditions included in its 2014 permit to build the pipeline, as well as firm up commitments with shippers and get more community support.

"Our ability to begin construction before the end of the year is really quite remote at this point," Monaco told investors on a conference call after the company reported its fourth-quarter results.

One condition of the permit requires it to start construction on either the 1,177-kilometre pipeline or a marine terminal in Kitimat, B.C., by Dec. 31 unless the National Energy Board directs otherwise.

Enbridge is assessing what would be needed if it were to apply for a deadline extension, Monaco said.

"We are really in evaluation mode," he said.

There has been strong First Nations opposition to Northern Gateway in B.C., where most land is not covered by treaties. The project, which would run from northern Alberta to a deepwater port in Kitimat, was further set back when the federal government banned tanker traffic along B.C.'s north coast.

Monaco has said the company is not giving up on the pipeline despite the tanker ban, and on Friday said he's not concerned with sticking to a defined timeline.

"We are not looking at our watch here on the project," he said. "This really will take some more time to develop, and that's what we're focused on."

The company said it's also facing delays on its Sandpiper and Line 3 projects in the U.S. after the Minnesota Public Utilities Commission ordered that a final environment impact statement on the pipelines be completed before other permits can be processed.

If the commission's decision is upheld, construction and $5 billion in spending on those projects would be postponed to 2018, Enbridge said.

In releasing its earnings, Enbridge said it did successfully complete 14 other projects worth $8 billion in 2015, including the reversal and expansion of Line 9B in southern Ontario.

The company reported $378 million profit and $494 million in adjusted earnings in the fourth quarter. The adjusted earnings worked out to 58 cents per share after excluding certain items, up nearly 21 per cent from the fourth quarter of 2014 and beating analyst expectations of 52 cents per share, according to Thomson Reuters.

Looking ahead, Monaco said the company's five-year plan has the company's core pipeline business still making up 70 to 75 per cent of earnings but he's hoping to diversify that and secure projects that aren't reliant on the oilsands.

"In terms of how we look at growth beyond 2019, we've been trying to establish opportunities around new platforms, whether it's power generation, transmission, natural gas and other opportunities to build that inventory now for the future," Monaco said.

Monaco said he sees Alberta as a promising place for renewables investment thanks to both strong wind and solar resources and the NDP's climate leadership plan.

"We think this is a very good environment to invest in renewables," he said. "You've got a great resource plus you've got a set of conditions from a policy position that would support further investment here."



Advertisements

Latest Economic News

  • Canada open to completing NAFTA talks in short order

    Economic CBC News
    Canadian negotiators are open to working on a timeline proposed by the U.S. to complete NAFTA renegotiations before the end of the year, CBC News has learned. A government source, speaking on background, tells CBC News that Canada is willing to work quickly, but will not agree to a bad deal for the sake of meeting a deadline. Source
  • U.S. wants NAFTA talks to wrap up before year's end, but is it possible?

    Economic CBC News
    Canadian negotiators are open to working on a timeline proposed by the U.S. to complete NAFTA renegotiations before the end of the year, CBC News has learned. A government source, speaking on background, tells CBC News that Canada is willing to work quickly, but will not agree to a bad deal for the sake of meeting a deadline. Source
  • B.C. premier and jobs minister sued by fired LNG advocate claiming $5M

    Economic CTV News
    VANCOUVER -- British Columbia's fired liquefied natural gas advocate is suing Premier John Horgan, the province's jobs minister and a New Democrat MP in a lawsuit claiming $5 million in damages. Gordon Wilson alleges in a statement of claim filed in B.C. Source
  • Millennials in Atlantic Canada most optimistic about owning homes

    Economic CTV News
    Do millennials think they can afford to buy a home? If they live in Atlantic Canada, the answer is a lot more likely to be yes. That’s according to a new online survey of 1,000 Canadians aged 25 to 30, conducted by Leger Marketing from real estate firm Royal LePage. Source
  • Can millennials afford to buy a home? It depends where they live

    Economic CTV News
    Do millennials think they can afford to buy a home? If they live in Atlantic Canada, the answer is a lot more likely to be yes. That’s according to a new online survey of 1,000 Canadians aged 25 to 30, conducted by Leger Marketing from real estate firm Royal LePage. Source
  • $500K hardship fund for former Sears Canada employees approved by judge

    Economic CBC News
    A judge has approved a hardship fund for former Sears Canada employees that will come from a pool of money set aside to pay bonuses for key employees. The $500,000 fund will help former employees facing difficulty who would have otherwise been eligible for severance payments when they lost their jobs at the retailer. Source
  • Elevated testosterone linked to 'reckless' financial trading, study finds

    Economic CBC News
    It's no secret financial traders have always been predominately male. So, when a group of researchers with the Ivey Business School at Western University in London, Ont., set out to at look at the role of testosterone on the markets, it wasn't a far-flung idea. Source
  • Brazil to ask for WTO panel to settle dispute over Bombardier subsidies

    Economic CTV News
    MONTREAL -- Brazil says it will ask the World Trade Organization to establish a dispute settlement panel after consultations with Canada failed to resolve its complaint about government subsidies to aircraft manufacturer Bombardier. The South American country said it will ask the WTO to examine more than 20 subsidy programs granted to the Montreal-based company for the development of its CSeries aircraft. Source
  • Bombardier employee in Swedish unit charged with bribery

    Economic CBC News
    A Russian employee in the Swedish branch of Canadian plane and train maker Bombardier was charged Friday with aggravated bribery and faces up to six years in jail and deportation if found guilty. Swedish prosecutor Thomas Forsberg alleges Evgeny Pavlov bribed a public servant in Azerbaijan to win a $340-million contract for a new signalling system. Source
  • Bombardier says Russian worker charged with bribery doesn't reflect its values

    Economic CTV News
    MONTREAL -- Bombardier says the filing of formal criminal charges in Sweden on Friday against a railway employee doesn't reflect its values. "We take these allegations very seriously as they assert conduct that does not reflect our values or the high standards we set for ourselves, our employees and our partners," the Montreal-based company (TSX:BBD.B) said in a statement. Source