Canada’s Enbridge sets 2022 capital priorities
Canadian energy infrastructure company Enbridge said December 7 it would advance another C$1.1bn (US$870mn) of new organic capital projects in 2022, on top of C$1bn of spending sanctioned earlier this year.
“Our organic growth will be focused on enhancing existing asset returns, modernising our assets, and low capital intensity opportunities within our conventional businesses to serve growing domestic and export market demand,” CEO Al Monaco said as part of the company’s annual Investor Day. “We also plan to continue to invest in low-carbon opportunities that leverage our existing assets and provide a platform for future growth.”
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The 2022 capital investments are part of Enbridge’s broader three-year plan that will see up to C$6bn of annual investment capacity, with as much as C$4bn of that prioritised to low capital intensity and utility-like investments and the rest “deployed to the next best alternatives and benchmarked against share repurchases.”
Included in the newly-sanctioned growth projects are a C$500mn expansion to the Valley Crossing pipeline in south Texas to deliver 720mn ft3/day of feed gas to the Texas LNG facility in Brownsville, should that project move to construction, a C$300mn expansion of Enbridge’s existing Dawn distribution system in southern Ontario, ensuring reliable regional gas supply, C$200mn for six new solar self-powering facilities on its natural gas and liquids pipelines and C$100mn into a floating offshore wind project in France.
Separately, Enbridge announced it intends to file a notice of intention to make a normal course issuer bid by the end of the year to repurchase C$1.5bn of its common shares. And it also said it would increase its quarterly dividend for 2022 to C$0.86/share from C$0.835/share, commencing with the dividend payable on March 1, 2022.