KEY POINTS
- Enbridge moves forward with its Mainline expansion despite U.S. tariffs.
- CEO Gregory Ebel sees $50 billion in energy growth opportunities.
- Enbridge is investing in crude and natural gas infrastructure.
Enbridge (ENB.TO), a major pipeline company in Canada, is not deterred by former President Donald Trump’s 10% energy tax on Canadian oil and is continuing to invest $2 billion in its Mainline network until 2028.
Enbridge moves forward with Mainline expansion despite tariffs
Moving both light and heavy crude from Alberta to refineries across Canada and the Midwest of the United States, the mainline is an essential part of the crude transportation network in North America. Despite new trade restrictions, Enbridge, which handles 40% of all North American crude, views the upgrade as an essential investment.
According to Oilprice, Gregory Ebel, the CEO of Enbridge, expressed optimism about the company’s prospects, telling investors that it has “roughly $50 billion of combined new growth opportunities through 2030.” This includes natural gas projects like Birch Grove, which will add 179 million cubic feet per day to its Westcoast Pipeline and is anticipated to go online in 2028, as well as crude oil expansions.
New tariffs raise concerns, but enbridge remains confident
Today, Trump imposed hefty duties on Canadian crude imports, raising prices in a market that is already competitive. Enbridge, however, has minimized the financial impact, claiming that it will have little effect during its most recent earnings call. It’s unclear if refiners will pass those expenses on to customers.
The T15 project in North Carolina, which Enbridge is also investing $700 million in, will double natural gas supply to Duke Energy’s Roxboro facility by 2028.
Enbridge’s shares fell 1.74% in late morning trade and has lost almost 4% in the last 30 days, despite the company’s long-term growth goal.
