Tags
Industry News
Pipelines

Solid start to 2018 for Enbridge, with more growth expected

Enbridge has reported a continued growth in its earnings through the first quarter of 2018, and expects the year to continue strong as it executes a number of key projects in a number of different areas.

Adjusted earnings in the first quarter of 2018 increased by $700 million or $0.25 per share compared to the same period in 2017. The 2018 increase was primarily driven by strong operating results, including higher contributions from Enbridge's new natural gas, liquids pipelines and utilities assets, stronger crude oil throughput on the Mainline system enabled by capacity optimization initiatives, new projects coming into service in the Liquids Pipelines, Gas Transmission & Midstream and Gas Distribution segments, lower operating and maintenance costs and more favourable realized settlements on foreign exchange hedges.  

"We're very pleased with the significant progress that we've made in the first quarter of the year towards achieving our 2018 strategic priorities," commented Al Monaco, President and Chief Executive Officer of Enbridge. "Our earnings and cash flows have grown significantly year over year, we've raised over $3 billion of hybrid securities and have now announced over $3 billion of asset sales, all consistent with our strategy to focus on a low-risk pipeline and utility business model and to accelerate funding of our secured capital program.

"Our strong financial results for the first quarter of 2018 clearly demonstrate the quality of the assets, predictability of cash flows and the accretive nature of the Spectra Energy merger that we completed last year. Adjusted earnings per share is up over 40% this quarter relative to the first quarter of last year. We're now benefiting from the significant financial synergies that we have captured to date from the deal and other efficiency efforts, and, as expected, we are seeing reliable and growing cash flow and earnings from the $12 billion in new capital projects that we brought into service through 2017," Monaco continued.

In the first quarter of 2018, the Company brought $0.8 billion of commercially secured projects into service, substantially on time and on budget. This included the US$0.2 billion Stampede Offshore oil lateral in the Gulf of Mexico that extends the Company's offshore footprint in the Green Canyon corridor and the $0.4 billion High Pine and the $0.2 billion Wyndwood pipeline expansions, to enhance the natural gas transmission capacity on the T-North section of the B.C. pipeline system. 

In total, $7 billion of projects are expected to come into service this year, including three of significant size. The $0.8 billion Rampion Offshore wind power generation facility in the UK is substantially complete and will begin delivering full power to the grid in the second quarter. The US$1.3 billion Nexus natural gas pipeline that will transport gas from the Marcellus and Utica basins to the upper Midwest and Canadian markets is progressing well with construction under way in Ohio and remains on track for completion late in the third quarter. Finally, the US$1.6 billion Valley Crossing project which will supply 2.6 Bcf of gas into the Mexican market has substantially completed its onshore pipeline installation and continues to advance the offshore portion for a fourth quarter 2018 in-service date. 

The $9 billion Line 3 Replacement project is a critical integrity replacement project that will enhance the safety and reliability of the Enbridge liquids Mainline System and provide incremental export capacity to Western Canadian producers and increased security of supply for key refining markets along the Mainline system as well as to markets further downstream. 
The project continues to progress well on several fronts. In Canada, the first phase of pipeline construction is now complete, with approximately 40% of the pipe now laid. In the U.S., the pipeline replacement work in Wisconsin is complete and that segment of the line is expected to be commissioned in May. 

In Minnesota, on April 23rd an Administrative Law Judge issued Findings of Fact, Conclusions of Law and Recommendation to the MPUC in connection with the Company's applications for a Certificate and Route Permit. The ALJ recommended that the MPUC grant the Company's application for a Certificate of Need, but only if the MPUC also selects a route that would require in-trench replacement of the existing Line 3, which is not the Company's preferred route. The ALJ's recommendation is not binding on the MPUC. 

The Company continues to believe that its preferred route remains the best solution for Minnesota and intends to continue its effort to secure approval of its preferred route by the MPUC. On May 9, 2018 Enbridge filed its exceptions to the ALJ Report with the MPUC, setting out its proposed revisions to the ALJ's summary of the evidentiary record, as well as Enbridge's points of disagreement with the conclusions on route recommendation. The MPUC is expected to issue a ruling on the Certificate of Need and Route Permit dockets at the end of the second quarter of 2018. Management continues to anticipate an in-service date for the project in the second half of 2019. 

"In summary, we're making good progress towards delivering on the priorities that we set out when we announced our strategic plan in December last year. We're on track to deliver full year financial results within the guidance range, and we're well ahead of the game with respect to funding initiatives for 2018," Monaco said. "We believe that we have the right strategic plan in place to position the Company for success and surface the significant value from what we believe are the premium energy infrastructure assets in North America, and we remain keenly focused on executing that plan over the remainder of the year."

Company Info

Latest News

Tags
Pipelines

Michels receives 10,000th Cat excavator from Victoria facility: PLM

Michels receives the 10,000th machine to be produced at Caterpillar's Victoria, Texas facility. Present at the ceremony were Tyler Sternat (Fabick Cat), Kent Podobinski (Caterpillar), Chuck Riggert (Caterpillar), Art Strother (Victoria facility manager), Doug Fabick (Fabick Cat), Mary Morris (Victoria O&D Planning), Kevin Michels, Pat Michels and Terry Gassner (MICHELS Corporation), Adam Helleberg (PLM), Roger Montalvan (Victoria supply chain manager), and Craig McArton (Fabick Cat).

PipeLine Machinery International (PLM) has announced that the 10,000th machine to be assembled and delivered by the Caterpillar Hydraulic Excavator Facility in Victoria, Texas - US. The new 336F Hydraulic Excavator went to mainline pipeline contractor Michels Corporation, and was presented in ceremony to them on May 16, 2018.

Read More

DPL Telematics AssetView tracking system offers innovative self-contained GPS solution

The DPL Telematics AssetView unit is compact and works for up to 3.5 years on three AA batteries.

DPL Telematics announced the release of the AssetView Tracking System. AssetView is an advanced solution for wireless monitoring and remote tracking of any powered or unpowered asset to improve logistics, manage inventory and curb theft. The small, portable GPS unit is completely self-contained and may be hidden on any asset, installing in seconds. 

Read More

Tags
Industry News

ExxonMobil, BASF form natural gas processing, petroleum refining development deal

ExxonMobil, BASF form natural gas processing, petroleum refining development deal

ExxonMobil Catalysts and Licensing LLC and BASF Corporation have signed an alliance agreement to jointly develop new gas treating solvents and process technologies for use in natural gas processing and petroleum refining. Under this new agreement, BASF will market and license technologies developed from this collaboration, along with FLEXSORB and OASE technologies.

Read More

Tags
Transportation

Michelin Tweel introduces airless radial tire for UTVs

Michelin Tweel Technologies, a division of Michelin North America, Inc., is introducing a new 26-inch airless radial tire with a four-bolt wheel-pattern hub designed for use on UTVs that will initially be sold as a fitment for the replacement market. Originally designed for military special operations use on light-tactical vehicles, the MICHELIN X TWEEL UTV 26x9N14 airless radial tire is a single unit that replaces the current pneumatic tire/wheel/valve assembly. Once bolted on, there is no air pressure to maintain, thus eliminating the need to carry spare tires, tools or repair kits.

Read More

Tags
Industry News
Pipelines

NETZSCH brings multiple screw pumps to GPS in Calgary

NETZSCH Canada, Inc., experts in solutions designed specifically for difficult pumping applications, will be highlighting its NOTOS Multiple Screw Pumps at the Global Petroleum Show (GPS 2018), which will be held June 12 - June 14, 2018 at the Stampede Park, in Calgary, Canada. The pumps will be featured in the NETZSCH booth, number 1394, highlighting the capability to pump everything from light fuel oil to viscous asphalt; the NOTOS Multiple Screw Pump is an excellent choice for rail car and ship loading and offloading, as well as tank-to-tank transfer. 

Read More

Tags
Transportation

Keyera to develop new Cushing terminal

Keyera to develop new Cushing terminal

Keyera Corp. has announced the development of a crude oil storage and blending terminal in Cushing, Oklahoma. The Wildhorse Terminal ("Wildhorse") will include 12 above ground tanks with 4.5 million barrels of working storage capacity. The majority of the capacity is backed by fee-for-service, take-or-pay storage arrangements ranging from two to six years in length.

Read More

Tags
Instrumentation, Systems & Automation

Pneumatic cylinders from Festo offer new variants and installation options

The latest generation of Festo's popular CRDSNU round stainless steel pneumatic cylinders boasts new variants and installation possibilities for extended and contaminant-free operations. Based on the ISO 6432 standard and ideal for operations in harsh environments or where frequent and effective cleaning is a must, CRDSNU now offers options like an extremely long-life dry running seal as well as self-adjusting end-position cushioning. 

Read More

Tags
Transportation

SMS Equipment makes big statement in support of cancer research, mental health

Messages supporting breast cancer and prostate cancer awareness, as well as mental health awareness, are part of the unique paint jobs on two Komatsu mining trucks.

SMS Equipment Inc. and KMC Mining have partnered to make big statements in support of prostate cancer research, breast cancer research and mental health awareness - unusual, bright, giant, and mobile statements, in fact, that are intended to spark candid conversations.

Read More

Tags
Power Systems

Rolls-Royce supplies first MTU Tier 4 final Oil & Gas engines in China to Jereh Petroleum Equipment

MTU and Jereh Petroleum Equipment signed the contract together with MTU’s Oil & Gas distributor in China, China Diesel Support Services (CDSS), during CIPPE. From left to right: Tony Chan, General Manager of MTU Hongkong; Wang Wei Zhong, General Manager Distribution & After Sales, CDSS; Zi Jing Zhong, President of Jereh Petroleum Equipment; Scott Woodruff, Director of Mining and Oil & Gas, MTU; Chu Fu-Min, Vice President of Sales and Business Development, MTU China and Zhang Wei, Vice President of Jereh Group.

Rolls-Royce has received its first order in China for Series 4000 MTU engines fulfilling EPA Tier 4 final emissions regulations. Key customer Jereh Petroleum Equipment has ordered  16 engines of type 12V 4000 T95 for new fracturing pump equipment. Jereh plans to sell the equipment which fulfils EPA Tier 4 regulations on the US Oil & Gas market. The contract was signed between Jereh and MTU with MTU's Oil & Gas distributor in China, China Diesel Support Services (CDSS), during the China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE).

Read More