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Revealed Feb 14, 2025 • 3 minute learn
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As considerations rise about Canada’s reliance on the U.S. for power exports, Enbridge Inc. chief government Greg Ebel says getting an enormous new power export venture off the bottom on this nation would require drastic shifts in authorities coverage.
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Talking on an earnings name, he laid out quite a few standards akin to authorized ensures for a pipeline, the elimination of assorted environmental insurance policies, extra funding for Indigenous participation and higher indications of prices and monetary returns earlier than the corporate would contemplate reviving one thing just like the Northern Gateway pipeline or different export tasks.
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“For us to be keen to significantly contemplate reinvesting in a venture like that, whether or not it’s east or west or simply west, we have to see actual change on quite a few fronts,” stated Ebel.
He stated he’d need to see legislative adjustments at each the federal and provincial degree figuring out an power venture as within the nationwide curiosity and so legally required, in addition to the elimination of insurance policies like an emissions cap, carbon tax and new environmental evaluation guidelines.
“Numerous co-ordinated federal, and pan-provincial legislative and regulatory motion can be required earlier than we predict buyers, administration groups, or prospects would have the ability to inexperienced mild such tasks.”
Enbridge and its buyers misplaced a whole bunch of hundreds of thousands of {dollars} when the federal authorities rejected plans for the Northern Gateway pipeline in 2016 as they had been nearing the end line, he stated.
“That’s a strong studying.”
The proposed Northern Gateway venture would have exported crude from the northern coast of B.C., a route the federal authorities determined was too environmentally dangerous and rejected it similtaneously it authorised the Trans Mountain pipeline enlargement, which went on to value greater than $34 billion to construct.
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The latest threats of tariffs and different aggression from the U.S. has revived questions on discovering new export routes for Canadian power.
Ebel stated he’s inspired there’s extra of a dialog happening about exports, but it surely should go nicely past discuss earlier than the corporate considers a shift in its method.
“They’re saying the appropriate issues, but it surely’s going to take actual actions, legal guidelines, regulation to draw the capital.”
His feedback got here as TC Power Corp., which had proposed the Power East crude pipeline in 2013, stated Friday that it was focusing discretionary spending on the U.S., and that Canada must work to compete for capital.
Whereas Ebel stated it was good that Canada was speaking about new export choices due to tariff threats, he additionally downplayed what impact they could have on the corporate’s present power exports.
“We’ve received tariff considerations on the market, however there’s such a hard-wiring of the power system in North America, we simply don’t see that as a fabric impression. And I feel given what we’re seeing from prospects, that’s really bearing out in actuality.”
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He stated the corporate doesn’t anticipate a lot change in its spending plans on tasks and areas except the tariffs are very excessive and stay for a protracted time.
Ebel stated the corporate continues to spend money on its crude and pure fuel export tasks and doesn’t see important change within the near-term, whereas suggesting an enormous Canadian export isn’t one thing they’re contemplating anyway.
“You already know, we talked a little bit bit about main east-west tasks, however I’m not 100 per cent positive, or simply west tasks, these are gonna occur any time quickly.”
His feedback got here as Enbridge reported a revenue attributable to widespread shareholders of $493 million in its fourth quarter, down from $1.73 billion a yr earlier.
The pipeline firm says the revenue amounted to 23 cents per share for the quarter ended Dec. 31, down from 81 cents per share within the final three months of 2023.
On an adjusted foundation, Enbridge says it earned 75 cents per share in its newest quarter, up from an adjusted revenue of 64 cents per share a yr earlier, and consistent with analyst expectations.
This report by The Canadian Press was first revealed Feb. 14, 2025.
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