- Company weighs C$5 billion investment in pipelines, storage
- Project part of C$38 billion spending budget through 2019
Enbridge Inc. is weighing a C$5 billion ($3.8 billion) investment in oil pipelines and storage facilities near the U.S. Gulf Coast as TransCanada Corp.’s Keystone XL project is mired in political delays.
Canada’s largest oil pipeline operator is considering adding infrastructure to ship and store oil from St. James, Louisiana, to Houston as part of a plan to prepare for growth in the region, according to an investor presentation from last month. The company is planning C$38 billion in spending through 2019.
Calgary-based Enbridge is focusing on expanding “low-cost, incremental” projects like twinning existing pipelines to provide producers with new transportation capacity as they struggle with low crude prices, Monaco said last month. The company’s C$7.5 billion Line 3 replacement is the largest project, along with the Gulf Coast projects.
Meanwhile, cross-town rival TransCanada earlier this week asked Secretary of State John Kerry to pause the U.S. review of its Keystone XL pipeline project, first proposed in 2008, while it seeks approval in Nebraska. Enbridge has added hundreds of thousands of barrels of oil pipeline capacity over the past five years with its Seaway venture, as well as improvements of existing lines. The company reports third-quarter results Thursday.