Enbridge to decide on controversial pipeline in second half of 2016
(Reuters) - Enbridge Inc (ENB.TO: Quote) (ENB.N: Quote) said it expected to make a decision on whether to go ahead with the controversial Northern Gateway pipeline in the latter half of 2016, though it could not commit to a timeline.
The newly formed Canadian government under Justin Trudeau has announced a ban on tanker traffic along the north coast of British Columbia, effectively slamming the door on Enbridge's C$7.9 billion ($5.92 billion) pipeline.
The pipeline has also faced opposition from environmentalists and Aboriginal groups who fear it will worsen climate change, besides concerns about the risk of a spill.
Chief Executive Al Monaco, however, said on a conference call that the company was not giving up on the project, which would carry oil sands crude from near Edmonton, Alberta, to a deepwater port at Kitimat, British Columbia for export to Asian markets.
The company also raised its quarterly dividend to 53 Canadian cents per share from 46.5 Canadian cents and announced a five-year strategic plan, including a C$38 billion growth program.
The Calgary-based company's shares closed down nearly 4 percent at C$45.82 on the Toronto Stock Exchange.
Enbridge also said on Thursday that its other pipeline, Line 9, is currently operational and would be generating revenue in December.
The company had earlier said a delay in starting Line 9, which ships crude from Ontario to Quebec, would hurt its 2015 adjusted earnings.