Canadian energy infrastructure firm Enbridge Inc. on Nov. 4 announced a CA$3.6 billion (US$2.65 billion) expansion of the southern segment of its British Columbia (B.C.) gas pipeline system after strong demand from customers.
The Calgary, Alberta-based company, which posted higher third-quarter earnings on Nov. 4, also launched an open season to gauge shipper interest in a potential CA$1.9 billion expansion of the northern section of the same system.
Gas production in Western Canada this year neared record levels of 18 Bcf/d. Enbridge CEO Al Monaco said that supply growth coupled with future demand from planned LNG export projects was underpinning the expansions.
“Given the outlook for Western Canada supply, we are seeing strong customer interest for more egress for LNG exports and downstream access,” Monaco said in an earnings call.
Enbridge said the expansion of the southern part of its system, known as T-South, will add 300 MMcf/d of capacity. It will serve customers in the Pacific Northwest and southern B.C., as well as the Woodfibre LNG project that Enbridge bought a CA$1.5 billion stake in earlier this year.
The company expects to file a regulatory application for the T-South expansion in 2024 and is targeting 2028 to start operations.
Enbridge is also looking at adding about 500 MMcf/d of capacity to the northern section of the system, T-North, which connects the gas-producing region around Fort Nelson in northeastern B.C. to the southern part of the pipeline network.
The open season for T-North is expected to end on Jan. 10.
Enbridge shares were trading 1.6% higher at CA$54.51 on the Toronto Stock Exchange on Nov. 4 after the company reported a higher third-quarter adjusted profit.
(US$1 = 1.36 Canadian dollars)
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