Enbridge second-quarter 2020 earnings off 5%

Enbridge Inc. had second-quarter 2020 earnings of $1.647 billion, compared with $1.736 billion for second-quarter 2019. The company is executing $11 billion of capital spending projects expected to enter service between 2020 and 2023, including its 760,000-b/d Line 3 crude pipeline replacement in Minnesota.

During second-quarter 2020, Enbridge:

• Completed Phase 1 of its Express Pipeline Expansion, adding 25,000 b/d of crude oil capacity between Hardisy, Alta., and Casper, Wyo., for a total capacity of 280,000 b/d
• Progressed construction of its $1-billion T-South natural gas transmission system reliability and expansion project. The project, which will add 190 MMcfd of capacity between, Chetwynd, BC, and the Canada-US border at Huntingdon, is on target for phased-in service during 2021.
• Received US Federal Energy Regulatory Commission (FERC) authorization to proceed with the $200-million Cameron Extension project, which will connect Texas Eastern pipeline to Venture Global’s Calcasieu Pass LNG plant and is expected to start construction in 2020.
• Advanced planned crude Mainline system optimizations adding 50,000 b/d of incremental throughput.

In second-quarter 2020, the Minnesota Public Utilities Commission issued its final order to approve the final environmental impact statement for Enbridge’s Line 3 replacement project, reinstating the certificate of need and route permit and denying all related petitions for reconsideration. This milestone substantially concluded the regulatory process and allows construction of the pipeline, which is expected to take 6-9 months, to begin following issuance of required state and federal permits.

The Minnesota Pollution Control Agency (MPCA) announced earlier this year that it will conduct a contested case hearing regarding Line 3’s 401 water quality certificate permit (OGJ Online, June 4, 2020). In order to maintain jurisdiction, the MPCA is required by the Clean Water Act to make a final decision regarding 401 certification by Nov. 14, 2020. Enbridge cannot determine when all necessary permits to start construction will be issued and did not provide an update to the in-service date for Line 3.

As part of Enbridge’s agreement with the State of Michigan, the company plans to replace its existing 540,000-b/d Line 5 dual light crude and NGL pipelines at the Straits of Mackinac with a pipeline secured in a tunnel under the Straits. The Michigan Courts have now twice confirmed the constitutionality of the legislation underpinning the agreements (OGJ Online, June 12, 2020) and the State of Michigan did not file for leave to appeal to the Supreme Court of Michigan within the requisite time, so this lawsuit has concluded, Enbridge said.

The company filed a regulatory application to the Michigan Public Service Commission (MPSC) for replacement of the Line 5 pipeline into a tunnel. MPSC has scheduled a public hearing for Aug. 24, 2020.

Upon receipt of all required permits Enbridge will begin construction of the Line 5 tunnel. Commissioning of the tunnel and pipeline is expected to be complete late-2024.