Enbridge (ENB) Expands the T-South Pipeline Segment of the British Columbia Pipeline System

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Enbridge Inc. (NYSE: IN B) today announced the successful completion of a bidding season for increased transportation capacity on the T-South segment of its BC Pipeline (T-South), a network of natural gas pipelines that originates near Chetwynd, British Columbia (BC) and extends south to the Canada-US border at Huntingdon-Sumas.

The opening season was oversubscribed, and Enbridge sanctioned and is proceeding with a 300 million cubic feet per day (MMcf/d) expansion at a capital cost of up to C$3.6 billion. “This expansion illustrates the immense strategic importance of our natural gas system in British Columbia to meet regional and global energy demand with low-emission natural gas,” said Cynthia Hansen, Executive Vice President and President of the gas transmission and midstream operations at Enbridge. “And it also demonstrates how we are able to leverage our conventional transmission assets to extend our growth and generate value for our shareholders.”

T-South’s expansion will involve the addition of pipeline loops and additional compression within a cost-of-service framework, supported by long-term contracts with a weighted average life of 65 years. The location of the loops and the accompanying compression will be determined in the coming months after detailed consultation with Indigenous communities and stakeholders and once the environmental and route assessment has been completed. Once complete, the capital cost estimate will be updated before the regulatory filing, expected in 2024.

“Enbridge’s underground assets continue to be in high demand and will continue to be essential in supporting growing energy demand while providing the world with a safe and secure source of energy,” added Mr. Hansen.

Pending regulatory approvals, the target in-service date for the T-South expansion is somewhere in 2028.

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