Enbridge new Gulf Coast capacity seen online in few months
By Julie Gordon
VANCOUVER (Reuters) - Enbridge Inc ENB.TO(ENB.N: Quote), Canada's largest pipeline company, said on Wednesday its Flanagan South and Seaway expansion projects in the United States aimed at more than doubling capacity to Gulf Coast refineries were on track to begin operating in the next few months.
Enbridge also reported adjusted quarterly earnings fell slightly but still beat estimates as higher deliveries were offset by lower tolls and a lack of revenue from Line 9B in Ontario, which is being reversed.
"It was a fairly vanilla quarter and that's a good thing for a pipeline company," said David McColl, an energy analyst with Morningstar. "I think all eyes are still really focused on the latter half of the year when Flanagan and Seaway are going to come online."
"Any delay really on either of those pipelines would be cause for concern, but at this point there shouldn't be any major delays," he added.
Construction of Flanagan South, a new line from Pontiac, Illinois, to Cushing, Oklahoma, was nearly complete and expected to be online in the third quarter, Al Monaco, Enbridge's chief executive officer, told investors on a conference call.
Its other near-term project, the Seaway expansion and twinning, should be completed "in the next couple of months," he said, boosting the Cushing to Freeport, Texas line to 850,000 barrels per day from 400,000 bpd. Seaway is a joint venture with Enterprise Products Partners LP (EPD.N: Quote).
"Both projects will have a positive impact on earnings later this year," Monaco said, referring to Seaway and Flanagan South.
The company also reaffirmed that it expected to have approval from the Obama administration for its Alberta Clipper pipeline expansion project in time to reach full capacity of 800,000 bpd by the third quarter of 2015. The Alberta Clipper line extends from Hardisty, Alberta, to Superior, Wisconsin. Continued...