Enbridge Says Texan Pipeline in Service
Canada’s Enbridge said November 2 its $1.6bn Valley Crossing pipeline in south Texas entered service on October 31, but while line-fill has begun, exports will not begin until a third-party receiving pipeline in Mexico is placed in service.
Valley Crossing is a 168-mile intrastate pipeline extending from Agua Dulce, Texas to Brownsville, Texas awarded to Enbridge in 2016 by the Comision Federal de Electricidad (CFE), Mexico’s state-owned electric utility, to provide 2.6bn ft3/day of transportation capacity to gas-fired power stations in Mexico and to end users in south Texas.
The company reported in its 3Q 2018 financial results that the $2.6bn Nexus Gas Transmission project – a 50/50 joint venture with DTE Midstream – was placed into service in October. Nexus is a 255-mile (410-km) pipeline designed to deliver about 1.5bn ft3/day of Appalachian gas from eastern Ohio to existing pipeline interconnects in southeastern Michigan.
“We're very pleased that the Nexus natural gas pipeline was placed into service in October and the Valley Crossing natural gas pipeline is now complete and available for service,” Enbridge CEO Al Monaco said. “These two projects are good examples of the growth from the premium natural gas franchise we acquired through the Spectra transaction.”
In 3Q 2018 Enbridge reported a GAAP loss of C$90mn (US$68.7mn) compared with earnings of C$765mn in the same period a year ago. Adjusted earnings for the period were C$933mn, up from C$632mn in 3Q 2017.
Distributable cash flow rose 13% year-on-year, to C$1.59bn from C$1.33bn.