Enbridge’s new CEO says Canada is missing out on opportunities as the world screams for energy
Pipeline giant Enbridge Inc.’s new CEO says regulatory uncertainty in that country has resulted in a “lost decade” for Canadian liquefied natural gas production.
Greg Ebel, who took over the reins from Enbridge’s outgoing CEO Al Monaco last month, made the comments in an interview following the release of the company’s fourth-quarter financial results.
Ebel – who was formerly chief executive of Spectra Energy, which Enbridge acquired in February 2017 – said he was in Ottawa last week to speak to cabinet ministers about the need to accelerate energy infrastructure development in that country.
He pointed out that the US only started exporting liquefied natural gas (LNG) in 2016. But a little over eight years later, the United States now has more LNG export capacity than any other country, and has also exported more LNG than any other country, according to the US Energy Information Administration.
U.S. LNG exports averaged 11.1 billion cubic feet per day (Bcf/d) in the first half of 2022, according to the EIA, while Canada has yet to operate a single LNG export terminal.
“Gosh, this is a missed opportunity for Canada,” Ebel said, adding that Enbridge’s pipelines currently supply natural gas to five operating LNG export facilities on the U.S. Gulf Coast.
He said the company remains interested in further acquisitions in the Gulf region that could accelerate its energy export strategy.
“As someone responsible for allocating human capital and financial capital, I have to do that where it feels most welcome,” he said.
“My first choice would be to do it right here in our backyard, but if that’s not possible we have to split it into different parts… and that’s why you’re seeing this great production, both in terms of infrastructure and opportunities on the Gulf Coast.” .”
LNG advances are being made here in Canada, with LNG Canada’s massive LNG export terminal near Kitimat, BC and Enbridge’s own Woodfibre LNG – a partnership with Pacific Energy Corp. from Singapore – were also approved.
Advocates say that given western Canada’s vast reserves of natural gas, there’s room to expand the country’s LNG industry even further – something they say could help other parts of the world reduce their dependency on coal and address global concerns about to address energy security.
But concerns about climate change and the upcoming energy transition have created an uncertain environment for energy investments. Prime Minister Justin Trudeau, for example, has indicated there is no business case for an LNG export terminal off Canada’s Atlantic coast, although proponents have said such a facility could help wean Europe off Russian energy.
“Our G7 colleagues are screaming for energy… they’re knocking on the door and we don’t seem to be answering,” Ebel said.
Energy infrastructure projects in this country have also been plagued by cost overruns and delays in recent years. TC Energy Corp. recently announced that the price for its Coastal GasLink pipeline project — which will transport natural gas across northern BC to the LNG Canada export terminal — has increased to $14.5 billion from $6.6 billion a year ago.
Last February, the Crown Corporation, which is behind the Trans Mountain pipeline expansion project – which will increase oil transport capacity from Alberta to the West Coast – announced that the project’s new cost was an estimated $21.4 billion, up from an earlier one Estimate of $12.6 billion.
In Trans Mountain’s case, the rising price was attributed in part to “planning pressures related to permitting processes” as well as route changes to avoid culturally and environmentally sensitive areas.
“You need stability in permitting, and you need certainty in permitting,” Ebel said, adding he believes Canadian politicians need to recognize that this country has a “global responsibility” for exporting energy to its allies .
“We seem to be focused on ourselves sometimes,” said Ebel.
“We are a relatively small country in terms of population and a huge country in terms of energy production. So we’d better find out.”
