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

  • Deciphering Trump's curious comments on Keystone XL pipeline

    Economic CBC News
    In his nearly hour-long speech at the Conservative Political Action Conference on Friday morning, U.S. President Trump talked about a lot of things — the media, Obamacare, trade and crime. But he also ventured into pipelines. Source
  • Ontario police looking for 'large quantity' of stolen cheese

    Economic CTV News
    SOUTH WEST OXFORD TOWNSHIP, Ont. - Police in southwestern Ontario are looking for thieves who made off with a lot of cheese. Ontario Provincial Police say the Village Cheese Mill in South West Oxford Township, east of London, Ont. Source
  • Stock prices slide lower despite large profits at big banks

    Economic CBC News
    Canada's benchmark stock index is on track for its worst day of the year as oil prices are lower and financial firms are selling off despite record earnings at some of Canada's biggest banks. The S&P/TSX composite index was off by 260 points to 15,520 in the afternoon. Source
  • TSX tumbles 247 points despite big profits at big banks

    Economic CBC News
    Canada's benchmark stock index is on track for its worst day of the year as oil prices are lower and financial firms are selling off despite record earnings at some of Canada's biggest banks. The S&P/TSX composite index was off by 260 points to 15,520 in the afternoon. Source
  • 'Baycott': Why 'Peeved Beavers' are upset by Ivanka Trump's brand at the Bay

    Economic CTV News
    Armed with distinctive blonde wigs, pursed lips and red power ties, a group of Ontario women are planning to dress up as U.S. President Donald Trump to protest the Hudson’s Bay Co. for carrying Ivanka Trump’s fashion line during two demonstrations in the Toronto area planned for Saturday. Source
  • Nova Scotia tourism sees third consecutive year of growth

    Economic CTV News
    HALIFAX - Nova Scotia says the province's tourism industry continued a steady upswing in fortunes in 2016. It says 2.2 million visitors came to the province -- that's up eight per cent, or about 170,000 more visitors, than in 2015. Source
  • Husky may sell some of its assets in N.L. offshore oil industry: sources

    Economic CBC News
    Canadian oil and gas producer Husky Energy Inc is weighing paring down its stakes in some of its Eastern Canadian offshore assets, in a move that could fetch as much as several billion dollars, people familiar with the talks have told the Reuters news service. Source
  • Cleanup of oil spill in Sask. cost $107M, Husky Energy says

    Economic CTV News
    CALGARY -- Husky Energy says efforts to clean up a major oil pipeline spill last year in Saskatchewan have cost $107 million. About 90,000 litres of heavy crude and diluent leaked into the North Saskatchewan River last July, jeopardizing drinking water supplies for thousands of people downstream. Source
  • Ottawa's deficit hits $14B through first nine months of fiscal year

    Economic CBC News
    The federal government ran a budgetary shortfall of $14 billion over the first nine months of the fiscal year, compared with a $3.2-billion surplus over the same period a year earlier. The Finance Department's monthly fiscal monitor says federal program expenses between April and December rose $16.7 billion, or 8.8 per cent, compared with the same stretch a year ago. Source
  • Uniqlo's new modest line featuring hijabs debuts in Toronto

    Economic CTV News
    A modest-style clothing collection that features hijabs and abayas is making its debut at Canada’s two Uniqlo clothing stores. The clothing collection is by U.K.-born fashion designer Hana Tajima and features 30 items in 81 colours and patterns. Source