Jun. 17, 2014, 6:56 PM
- Enbridge (ENB) gained approval for its Northern Gateway pipeline, but now the real work begins, since it first must nail down oil shipping contracts that meet the 200-plus conditions attached to the project.
- ENB needs firm transportation contracts covering at least 60% of the pipeline’s capacity prior to starting construction, and some analysts say the many competing export projects and the sharp growth of oil shipments by rail could make shoring up commercial support for the pipeline difficult, and even delay construction into next decade.
- If built, Northern Gateway would serve as an important link between the Alberta oil sands deposits and energy-thirsty Asian markets, but If TransCanada’s (TRP) Keystone XL and Energy East projects are approved, “Gateway gets shelved for a very, very long time, because [ENB] won’t be able to fill it," says one industry analyst.
- Suncor (SU), Cenovus (CVE), Cnooc (CEO), Total (TOT) and others have signed so-called precedent agreements to ship oil on the pipeline, but legal experts say those agreements aren’t binding, giving producers wiggle room to choose alternatives.
Jun. 17, 2014, 5:15 PM
- The Canadian government approves Enbridge’s (ENB) Northern Gateway pipeline, Bloomberg reports, which would eliminate the final major regulatory obstacle for the project that would move Alberta oil to the Pacific coast for shipment to Asia.
- Approval of the C$6.5B project is said to be subject to ENB satisfying the 209 conditions placed on the proposal by a regulatory review panel in December.
- ENB +2.3% AH.
Jun. 11, 2014, 6:17 PM
- Notwithstanding the optimism of Alberta's energy minister, who expects Canada’s government to approve the Northern Gateway (ENB) pipeline this month, Natural Resources Minister Greg Rickford says the Canadian government could delay a decision.
- "This is an extensive report with 209 conditions, and the government obviously has the clear option of taking that on its face, or other options that would or could include delays,” Rickford says.
- The government was expected to decide by June 17 on the proposal to build the 525K bbl/day pipeline which would carry crude from Alberta’s oil sands to a deepwater port in British Columbia.
Jun. 10, 2014, 7:07 PM
- Privately-held Pacific Future Energy Corp. says it is in the early stages of planning a $10B oil refinery on Canada's west coast that it claims would be "the world’s greenest refinery” and built in full partnership with British Columbia's First Nations, many of whom are strongly opposed to proposals to ship crude to the west coast for export.
- Canada's government is poised to decide whether to approve Enbridge's (ENB) Northern Gateway pipeline project, which would require huge tankers full of heavy oil to navigate the rough waters of the Douglas Channel on their way out into the Pacific.
- The Pacific Future proposal would mean refined products, rather than heavy oil, would be shipped on tankers to Asia, making any potential spill much less environmentally damaging.
Jun. 10, 2014, 10:59 AM
- Shipments of crude oil by rail from western Canada are expected to more than triple in the next two years to ~700K bbl/day in 2016 from 200K in late 2013 amid a severe shortage in pipeline capacity, according to the annual forecast from the Canadian Association of Petroleum Producers.
- Rail transportation is widely regarded as more dangerous than pipelines, but oil trains can be ramped up fast in response to market demand because they are not as regulated as pipelines.
- Oil supplies in western Canada from the oil sands and from new shale plays continue to increase, while four major pipeline projects - Keystone XL (TRP), the TransMountain expansion (KMI, KMP), Northern Gateway (ENB) and Energy East - await regulatory approval and construction.
Jun. 9, 2014, 10:41 AM
- Just days before Canada's government issues a verdict on the proposed Northern Gateway pipeline, Finance Minister Joe Oliver says a failure to get landlocked Alberta crude to markets other than the U.S. will have stark consequences for the Canadian economy.
- Oliver says growing U.S. supply and a lack of pipeline infrastructure means Canadian producers sold their crude at a discount vs. benchmark oil prices, leading to lost revenue of nearly C$30B (US$27.4B) in 2013.
- The government is set to issue a decision by June 17 on whether Enbridge (ENB -0.3%) can proceed with the controversial pipeline, which would connect Alberta's landlocked oil sands to a Pacific coast port for export primarily to markets in Asia.
Jun. 6, 2014, 11:37 AM
- Enbridge (ENB), facing resistance to the end point for its proposed Northern Gateway oil pipeline, could pursue another option thanks to its December purchase of land close to the B.C. port of Prince Rupert.
- Residents of Gateway’s planned terminus point in Kitimat, further south and more inland than Prince Rupert, voted against Gateway in a non-binding April plebiscite; opponents say the 186-mile route between Kitimat and open sea would force oil tankers to navigate shallow, narrow channels prone to bad weather, raising the risk of oil spills.
- By rerouting to Prince Rupert, ENB would be opting for the path of least resistance and gain a fresh start with more moderate Gateway opponents, Morningstar analyst David McColl says.
Jun. 4, 2014, 11:57 AM
- A majority of British Columbians want Canadian PM Harper to reject or delay Enbridge’s (ENB -0.8%) Northern Gateway pipeline amid concern the project could lead to oil spills, according to a Bloomberg poll.
- With two weeks to go before the deadline for a government decision on Gateway, the poll seems to show that environmentalists and aboriginal groups have more credibility on the project than ENB and the Harper government.
Jun. 4, 2014, 9:59 AM
- Enbridge (ENB -0.8%) says it has reopened a 263K bbl/day pipeline carrying crude oil from Canada through northern Indiana and southern Michigan that was shut down earlier after a third-party power failure.
- The Line 6B pipeline, which connects on either end to ENB's network carrying oil eastward from western Canada, ruptured in 2010 and spilled 20K barrels of oil into Michigan's Kalamazoo River.
May. 19, 2014, 11:41 AM
- Despite outward similarities, Enbridge Energy Partners (EEP -0.2%) is not the next Boardwalk Pipeline, and instead its strong relationship with its general partner offers "unparalleled financial backing and growth prospects," according to Morningstar's Connie Hsu.
- Distributable cash flow has been short of full coverage for two years, but cash flow and coverage will improve, recent weak profits are attributed mostly to cyclical and exceptional reasons, and EEP's liquids pipelines - by virtue of their connectivity to the Enbridge (ENB) family's expansive pipeline network - remain in high and growing demand, Hsu writes.
- ENB's recent financial support of EEP shows symbiotic interests, and its yield is "stable and attractive," Hsu believes.
May. 14, 2014, 7:00 PM
- Canada introduces new measures to strengthen pipeline safety, ahead of the development of new projects proposed to carry crude from Alberta's oil sands to coastal ports for export.
- The new legislation will give Canada's National Energy Board more power to enforce compliance on safety and the authority to step in to lead spill response; also, companies now will be held liable up to C$1B (US$917M) for all spills or incidents on their lines, whether or not they are at-fault or negligent.
- "The 'polluter pays' principle will be enshrined in law so that it is clear Canadian taxpayers are not expected to foot the bill in the event of a major oil spill," Natural Resources Minister Greg Rickford says.
- The government is trying to raise public support for new pipelines as it prepares to rule on Enbridge’s (ENB) Northern Gateway project and Kinder Morgan's (KMI, KMP) plan to expand its Trans Mountain pipeline, and TransCanada (TRP) has proposed a line to carry crude to refineries on the east coast.
May. 7, 2014, 10:29 AM
- Enbridge (ENB -0.1%) shares are little changed after the pipeline company posted a 56% Y/Y improvement in Q1 earnings, helped by higher operating results across its businesses.
- Revenues totaled $10.52B, up from $7.9B in the year-ago quarter.
- Reaffirms FY 2014 guidance, seeing EPS of C$1.84-C$2.04 vs. C$1.96 analyst consensus estimate.
- Average deliveries on the regional oil sands system, comprising Athabasca mainline and Waupisoo pipeline, rose 45% to 671K bbl/day; deliveries on the Canadian Mainline system gained 7% to 1.9M bbl/day.
- Separately, ENB said late yesterday that its 796K bbl/per day Line 4, which carries crude oil from Alberta to Minnesota was shut after a power outage.
May. 7, 2014, 7:09 AM
May. 6, 2014, 6:48 PM
- Kinder Morgan (KMI, KMP) is faced with a public relations problem thanks to a portion of its proposal to expand its Trans Mountain pipeline where it said an oil spill can have positive economic effects such as business and employment opportunities for spill response and clean-up.
- The company says it is required to analyze both positive and negative effects of a spill in its project application, but Kinder Morgan Canada president Ian Anderson says "no spill is acceptable to me anywhere, any time, for any reason... Spills are not part of our economic benefits analysis, nor do we in any way say that money spent on spill response would be justification for our project."
- A spokesman for Enbridge (ENB), a supporter of the pipeline to B.C., says he does not believe Canadian government guidelines require such an analysis.
- Rachel Maddow was among the outraged critics.
May. 6, 2014, 5:30 PM
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May. 2, 2014, 3:28 PM
- Crude oil imports to eastern Canada already have been cut by more than one third from a year ago, and Valero Energy (VLO) and Suncor (SU) are poised to use only North American crude in eastern Canada by 2015, further displacing overseas imports and possibly helping to bring domestic prices to an equilibrium with international levels.
- SU’s Montreal refinery will reach that point in 2015 and VLO’s Quebec City plant by the end of this year; Enbridge (ENB) plans to start a pipeline late this year allowing oil to flow to Montreal from fields in North Dakota and Alberta, further reducing higher-priced supplies from Europe and Africa.
- “Within a very short period of time, there won’t be any barrels coming into eastern Canada from overseas," says John Auers of industry consultant Tuner, Mason & Co.
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