UPDATE 3-Enbridge new Gulf Coast capacity seen online in few months
(Adds CEO comment on re-exports of Canadian crude)
By Julie Gordon
VANCOUVER May 7 (Reuters) - Enbridge Inc , 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.
Also on Wednesday, Enbridge reported its 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."
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. Seaway is a joint venture with Enterprise Products Partners LP.
The company 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.
With much of its growth set to happen over the next five years, Enbridge said it was looking at new opportunities in renewable energy generation, midstream natural gas infrastructure in western Canada and opportunities in Colombia, Peru and Australia. Continued...