Enbridge eyes market share on cloudy competitors’ future
Enbridge is hoping to take advantage of its competitors’ woes to gain more market share in the future. Twitter photo.
Enbridge forecast rise in adjusted earnings for 2017
The Executive Vice President of Enbridge Inc says the pipeline company will take advantage of its competitors’ woes to gain market share and may begin early discussions on a new tolling agreement after 2022.
Guy Jarvis did not name the rivals, but did tell attendees at an investors event in Toronto that pipeline customers will be looking for capacity amid the “lingering uncertainty around when and even if competing pipelines will ever come online.”
Last month an election in British Columbia complicated the proposed expansion of the Kinder Morgan Trans Mountain pipeline. A possible minority government made up of the NDP and Greens, two parties that vowed to block the project, has left the future of the Alberta to BC pipeline in question.
As well, TransCanada is battling to get approval from the state of Nebraska for the Keystone XL pipeline, despite presidential approval.
The TransCanada Energy East pipeline has been mired in controversy and its review process has been suspended.
“We see a window of opportunity emerging now to start early discussions with our customers on a post-CTS tolling agreement,” said Jarvis. He was referring to the company’s 10-year tolling settlement for its Mainline system reached in 2011.
According to Reuters, Enbridge has forecast a rise in adjusted earnings this year after the firm purchased Spectra Energy Corp.
Jarvis said after the acquisition, the company can take advantage of its larger scale and looks to expand its 280,000 barrel per day Express Pipeline that the company purchased in the Spectra deal.
As well, the VP said Enbridge is “laser-focused” in bringing online projects including its Line 3 Replacement Program from Hardisty, Alberta, to Superior, Wisconsin.
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