The Canadian Press - ONLINE EDITION

Enbridge sees new pipeline opportunities in Mexico's reforming oil sector

  • Print

CALGARY - The chief executive of Enbridge Inc. said there could be opportunities to build new pipelines in Mexico as the country opens its energy industry up to outside investment.

"They're obviously in significant need of pipeline infrastructure," said Al Monaco, adding that goes for both oil and natural gas.

Mexico is in the process of ending the government's 75-year monopoly over energy through a series of reforms. It hopes private investment and foreign expertise can help revive its oil and gas production, which has been waning.

A delegation of Mexican government officials and business leaders visited Calgary earlier this year to tout the opportunities.

"Obviously these changes that have been brought down are very positive in that they're going to encourage a lot more investment," Monaco said in a conference call Friday to discuss the company's second-quarter results.

However, Enbridge (TSX:ENB) has no immediate plans to enter Mexico, he said.

"We're going to watch to see how these regulations work through and we'll keep our finger on the pulse and see where we go there."

Enbridge rival TransCanada Corp. (TSX:TRP) already has a foothold in Mexico, with two pipelines operating and expansions in the hopper. It, too, has indicated the Mexican reforms could mean opportunities for new projects.

Enbridge executives also discussed the possibility of building a new rail unloading facility in Illinois that would help bring Alberta crude to the U.S. Gulf Coast. Its tentative start-up date would be early 2016.

The facility, which is expected to have a capacity of about 140,000 barrels per day, would be adjacent to the start point of Enbridge's Flanagan South pipeline. Flanagan South is slated to start shipping crude to Cushing, Okla., later this year. From there, the oil can make its way to the lucrative Gulf Coast through the Seaway pipeline, partly owned by Enbridge.

Earlier Friday, Enbridge posted a second-quarter profit of $756 million or 91 cents per share, boosted by its hedging program and other one-time items. The result compared with a profit of $42 million, or five cents per share, in the same quarter of 2013.

The company's adjusted earnings were $328 million, or 40 cents per share, compared with $306 million, or 38 cents per share, in the same quarter last year.

Analysts had been expecting 39 cents of adjusted earnings per share, according to data compiled by Thomson Reuters.

Enbridge said its second-quarter adjusted earnings growth was primarily driven by liquids pipeline business.

Cash flow from operating activities was $812 million, down from $937 million year-over-year.

In June, the federal government gave the green light to Enbridge's multibillion-dollar Alberta-to-West Coast Northern Gateway pipeline project, subject to 209 conditions recommended by a regulatory panel late last year.

The pipeline would connect growing oilsands crude with buyers on the other side of the Pacific.

But shovels aren't likely to hit the ground any time soon, as Enbridge looks to win support from communities along the route. Opponents have also vowed to fight the project in court.

Follow @LaurenKrugel on Twitter

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

How Winnipeg's slow growth saved the Exchange District

View more like this

Photo Store Gallery

  • KEN GIGLIOTTI  WINNIPEG FREE PRESS / July 23 2009 - 090723 - Bart Kives story - Harry Lazarenko Annual River Bank Tour - receding water from summer rains and erosion  damage by flood  and ice  during spring flooding -  Red River , Lyndale Dr. damage to tree roots , river bank damage  , high water marks after 2009 Flood - POY
  • A Canada goose makes takes flight on Wilkes Ave Friday afternoon- See Bryksa’s 30 Day goose a day challenge- Day 09- May 11, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you support Canada's involvement in the fight against Islamic State?

View Results

View Related Story

Ads by Google