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Enbridge Has a Strong Backlog of Growth Projects

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Enbridge’s growth projects

Enbridge (ENB) has 16 billion Canadian dollars of growth projects that are expected to come in service over the next two years. The projects are expected to continue to fuel Enbridge’s earnings growth. The company completed 7 billion Canadian dollars of growth projects in 2018. Enbridge’s biggest upcoming projects is the Line 3 Replacement project with an estimated cost of 9 billion Canadian dollars.

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In March, Enbridge announced that the Line 3 Replacement project could be delayed by roughly a year. The company expects the project to come in service in the second half of 2020. The above table shows Enbridge’s capital projects that are expected to be in service in 2019 and 2020. The T-South expansion and the East-West Tie-Line are expected to be in service in 2021.

Opportunities in the long term

Enbridge is targeting an annual self-funding capability of 5 billion–6 billion Canadian dollars after 2020. The company expects to spend roughly 2 billion Canadian dollars in liquids pipelines, 2 billion–3 billion Canadian dollars in gas transmission, and ~1 billion Canadian dollars in gas utilities annually.

Among Enbridge’s projects in the initial stages is an offshore loading terminal in the Texas Gulf Coast. Enbridge is planning the terminal in partnership with Kinder Morgan (KMI) and Oiltanking. With an expected cost of 800 million Canadian dollars to Enbridge, the project is expected to come in service in late 2021 or early 2022.

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