Enbridge Q2 earnings weaken 15%, Line 3 to enter service Q4 2021

Aug. 9, 2021

Enbridge Inc. had second-quarter 2021 earnings of $1.394 billion, compared with $1.647 billion for second-quarter 2020. The company is executing $17 billion of capital spending in 2021, $8 billion of which has already been spent. It expects to put $10-billion worth of projects into service in 2021 including:

  • Line 3 Replacement Project (L3RP) and Southern Access Expansion.
  • T-South and Spruce Ridge expansions of the BC Pipeline, and its 2021 modernization program.
  • Customer connections, expansions, and reinforcement projects in gas distribution.
  • Several other smaller projects within liquids pipelines and gas transmission and midstream.

Construction of the US portion of L3RP in Minnesota continues to advance on schedule, according to Enbridge. Construction resumed in early June after a planned temporary pause starting Apr. 1 due to seasonal restrictions.

In June, the Minnesota Court of Appeals acknowledged the thorough review completed over 6 years by the Minnesota Public Utilities Commission and confirmed that the Commission appropriately approved the project’s environmental impact statement, certificate of need, and route permit (OGJ Online, June 3, 2021).

L3RP will replace the majority of Enbridge’s existing 34-in. OD Line 3 crude pipeline with new 36-in. OD pipeline, doubling its capacity to 760,000 b/d. Enbridge expects it to enter service fourth-quarter 2021.

The $1-billion T-South Reliability and Expansion Program and $500-million Spruce Ridge Project also continue to advance on schedule. Combined, these two projects will increase capacity of the BC Pipeline System by about 590 MMcfd to meet growing regional demand in British Columbia and the US Pacific Northwest through a combination of compressor station upgrades and the addition of two new pipeline segments.

T-South runs from south of Chetwynd, BC, to the US-Canada border at Sumas, Wash. Expansion would add 190 MMcfd of capacity.

During second-quarter 2021 two of the planned five compressor stations replacements on the T-South project were completed and placed into service. New compression is being installed at:

  • Compressor Station (CS) 3 near McLeod Lake, BC.
  • CS 4A near Summit Lake, BC.
  • CS 4B near Hixon, BC.
  • CS 5 near Kersley, BC.
  • CS 6A near 150 Mile House, BC.

On the Spruce Ridge project, one of two new sections of pipeline was completed and placed into service. Enbridge expects to place the remaining sections of both projects into service by fourth-quarter 2021.

Enbridge is also working on a proposed expansion of its East Tennessee Natural Gas (ETNG) system. The potential expansion would provide additional natural gas for Tennessee Valley Authority (TVA) to support replacement of an existing coal-fired power plant as it continues to transition its generation mix towards lower-carbon fuels.

TVA’s environmental review scoping has begun for this plant. Several options to replace the retiring coal-fired generation will be assessed in TVA’s environmental impact statement. Should the onsite natural gas option of building a combined-cycle plant be selected through TVA’s review, Enbridge would deliver on the required expansion of the East Tennessee system.

ETNG’s proposed project would consist of the installation of additional pipeline, with the majority of the route along existing rights-of-way and installation of one electric-powered compressor station and solar-generation infrastructure. Should TVA decide to build the combined-cycle plant, and pending approval and receipt of regulatory permits, construction of the pipeline would begin in 2025 with a target in-service date of fourth-quarter 2026.