* Q3 adjusted profit C$0.34/shr vs C$0.35 expected
* Revenue falls 8 pct to C$5.78 billion
* Shares down 1.5 pct
By Scott Haggett and Maneesha Tiwari
CALGARY, Alberta, Nov 7 (Reuters) - Enbridge Inc, Canada’s No. 2 pipeline company, said on Wednesday a planned expansion of its eastern Canada oil pipeline network will be able to supply Quebec refineries, but admitted there may be room for a rival project.
The company also reported a 13 percent rise in adjusted third-quarter profit on higher crude oil shipments.
Enbridge plans a major expansion of its lines that carry crude from the oil sands and the Bakken shale-oil field to refineries in central Canada and the U.S. Midwest.
Its Eastern Access Project looks to fully reverse and possibly expand a 240,000 barrel-per-day pipeline that now carries imported oil from Montreal to Sarnia, Ontario.
The project faces competition from larger rival TransCanada Corp, which is mulling the conversion of an under-used natural gas pipeline to carry oil sands crude to refineries in eastern Canada and, perhaps, the U.S. Eastern Seaboard and the Atlantic basin.
While some observers have fretted that Quebec’s 370,000 bpd refining market could not support both projects, Enbridge Chief Executive Al Monaco said on Wednesday there may be room for both projects, particularly if a line is extended to Canada’s Atlantic coast.
“We’re comfortable we can satisfy (Quebec demand) and ... we have long-term commitments that underpin that,” Monaco said on a conference call. “If you look at the rest of the refining market on the East Coast it’s probably another 400,000 barrels per day of capacity that’s in the Canadian market. And then of course the key to that is what’s beyond that in terms of going to the Philadelphia market or even further to the Atlantic basin across the water ... Ultimately, I suppose there would be enough capacity beyond the Quebec market to satisfy the (TransCanada) project.”
TransCanada said last month that a line carrying up to a million barrels per day to Eastern Canada and the U.S. East Coast could be viable. It will make a final decision on whether to move forward on its plan early next year.
Enbridge reported a third-quarter net profit of C$189 million ($190 million), or 24 Canadian cents per share, compared with a loss of C$5 million, or 1 Canadian cent per share, a year earlier.
On an adjusted basis the company earned C$269 million, or 34 Canadian cents per share. Analysts expected 35 Canadian cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell 8 percent to C$5.78 billion.
The company said its Canadian Mainline, the main pipeline network for Canadian oil exports to the United States, transported 1,617 million barrels of liquid per day during the quarter, up 3 percent from a year earlier.
Enbridge said strong volumes at its liquids pipelines boosted results.
Shares of Enbridge were down 50 Canadian cents at C$39.59 in afternoon trade on the Toronto Stock Exchange.