Enbridge Plans Asset Sales, Doubles Down on Natural Gas
Pipeline giant Enbridge is planning to sell off C$10 billion in “non-core assets”, including $3 billion in 2018, as it doubles down on one of the fossil fuels that came under attack at last month’s United Nations climate change conference (COP 23) for its contribution to global greenhouse gas emissions.
“We will rationalize our asset mix to a pure regulated pipeline and utility business model, which emphasizes low-risk businesses and strong growth in our three crown jewel businesses: liquids pipelines and terminals, natural gas transmission, and storage and natural gas utilities,” CEO Al Monaco said earlier this week.
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The announcement drove up the company’s share price by up to 8.1%, Reuters reports.
The sell-off includes some of the companies and assets Enbridge gulped up when it spent $37 billion to acquire Houston-based Spectra Energy last fall and become North America’s biggest energy infrastructure operator. “The combined entity would have a pro-forma enterprise value of about $165 billion and a diversified asset base including crude oil, liquids and natural gas pipelines, terminal and midstream operations, regulated utilities, and renewable energy,” the Globe and Mail reported at the time.
Now, analysts say the sale items “could include portions of the Spectra Canada assets, Enbridge wholly-owned assets such as the Tupper and Cabin gas plants, DCP Midstream ownership, Midcoast Energy Partners assets, and onshore renewables both in Canada and the United States.”