Enbridge Inc. and its subsidiaries (Enbridge) is a North American energy infrastructure company.
The company’s core businesses include Liquids Pipelines, which consists of pipelines and terminals in Canada and the U.S. that transport and export various grades of crude oil and other liquid hydrocarbons; Gas Transmission, which consists of investments in natural gas pipelines and gathering and processing facilities in Canada and the U.S.; Gas Distribution and Storage, which consists of natural ga...
Enbridge Inc. and its subsidiaries (Enbridge) is a North American energy infrastructure company.
The company’s core businesses include Liquids Pipelines, which consists of pipelines and terminals in Canada and the U.S. that transport and export various grades of crude oil and other liquid hydrocarbons; Gas Transmission, which consists of investments in natural gas pipelines and gathering and processing facilities in Canada and the U.S.; Gas Distribution and Storage, which consists of natural gas utility operations that serve residential, commercial and industrial customers in Canada and the U.S.; and Renewable Power Generation, which primarily consists of investments in wind and solar assets, as well as geothermal and power transmission assets, in North America and Europe.
Strategy
The company strives to be the leading first-choice energy delivery company in North America and beyond—for customers, communities, investors, regulators, policymakers, and employees. As part of the company’s community engagement, the company remains committed to meaningful dialogue with Indigenous peoples to achieve common goals and constructive outcomes from the company’s projects and operations. The company is also committed to advancing investment opportunities with Indigenous groups, as demonstrated by recent partnerships on the company’s oil pipelines and in the development of renewable energy projects.
Strategy
The company’s strategy is underpinned by a deep understanding of both local and global energy supply and demand fundamentals. Through disciplined capital allocation, aligned with the company’s outlook on energy markets, the company has become an industry leader with a diversified portfolio of infrastructure super systems across the North American continent, creating a platform for incremental growth. The company’s robust pipeline of project development opportunities, the integration of recent strategic acquisitions, and ongoing efficiency improvements are expected to drive the company’s business forward. The company remains confident in the company’s balanced growth strategy and expects to continue to invest in its diversified footprint of both conventional businesses and complementary lower-carbon platforms. This includes extension and expansion opportunities to meet LNG exports and offshore gas, as well as leveraging North American electrification trends, including the expansion of data centers, where the company can provide integrated customer solutions through its natural gas and renewable power businesses. Additionally, the company is committed to effectively managing its emissions from its operations and building lasting and inclusive relationships with the company’s stakeholders, including Indigenous peoples, the company’s customers and employees.
In order to continue to be an industry leader and to create value over the short and long term, the company maintains a robust strategic planning process. The company regularly conducts scenario and resiliency analysis on both its assets and business strategy.
Consistent with the company’s strategy, the company has progressed several of its priorities in 2024. For example:
The company completed the acquisition of the U.S. Gas Utilities with operations in Idaho, North Carolina, Ohio, Utah and Wyoming, creating the largest natural gas utility franchise in North America, providing visible, low-risk, long-term, rate base growth.
The company’s Liquids Pipelines business exported record volumes through the company’s Enbridge Ingleside Energy Center (EIEC), received approval from the Canada Energy Regulator (CER) in 2024 for the company’s Mainline Tolling negotiated settlement through to 2028, sanctioned an expansion of the Gray Oak pipeline and incremental capacity at the EIEC following successful open seasons, and acquired marine docks with land adjacent to EIEC, further advancing the company’s Permian export strategy.
The company’s Gas Transmission business reached a negotiated settlement with shippers on Texas Eastern, announced and closed the Whistler Parent JV, a joint venture formed by Enbridge, WhiteWater/I Squared Capital and MPLX LP, connecting Permian Basin natural gas supply to growing LNG and other U.S. Gulf Coast demand, and achieved final investment decision on the Tennessee Ridgeline Expansion and Blackcomb Natural Gas Pipeline. The company also expanded its footprint in the Gulf Coast by sanctioning the Canyon System Pipelines and the formation of a joint venture to service the Sparta offshore development to serve BP, Shell and Equinor Gulf Coast developments. The company also expanded its exposure to LNG by sanctioning the Venice Extension Project, which supplies the Venture Global Plaquemines LNG facility. The company continues to work with customers on opportunities to supply new gas-fired power generation relating to data centers and growth of electricity demand generally, and capitalize on strong gas fundamentals to deliver safe, reliable, and lower-carbon energy to North Americans while simultaneously growing LNG exports.
The company’s Gas Distribution and Storage business continued to advance its incentive regulation rate application in Ontario by filing a settlement proposal for the second phase of the company’s 2024 rebasing application with the Ontario Energy Board (OEB), added approximately 36,000 new customers across the company’s Ontario utilities business, commenced the integration of the Acquisitions, including its three million customers, and capitalized on increasing electric power and industrial demand - for example, by contracting gas supply to provide 200 megawatts (MW) of data center power in Utah and building the Moriah Energy Center, a 2 billion cubic feet LNG facility, to enable system growth and maintain reliability in North Carolina. The company remains committed to assessing low-risk, capital investment opportunities, and providing cost-effective, reliable and lower-carbon energy to customers in Ontario, Quebec, Ohio, North Carolina, Utah, Wyoming, and Idaho.
The company’s Renewable Power Generation business continued to execute on growth opportunities, including through the company’s onshore business with the sanctioning of Orange Grove Solar in Texas (backed by a PPA with AT&T), Sequoia Solar in Texas (backed by a PPA with AT&T and Toyota), completion of Fox Squirrel Solar Phase 2 and 3 in Ohio (backed by a PPA with Amazon), and the announcement of the Seven Stars Energy Project, the company’s first renewable power indigenous partnership focused on wind energy generation in Saskatchewan. The company also continued to progress opportunities in its Offshore Wind business in Europe, including placing the Fecamp project into service, delivering first power to the French grid from the Provence Grand Large floating offshore wind project and more recently, winning an offshore wind farm tender for a project in the Mediterranean Sea off the southern coast of France.
The company continued to make meaningful progress towards the company’s ESG goals. The company further strengthened its relationships with Indigenous communities across North America while advancing the company’s reconciliation commitments as a part of the company’s Indigenous Reconciliation Action Plan, meeting 12 of 22 commitments. The company is striving to reduce emissions from its operations through multiple pathways, including system modernization, and continued investment in the company’s lower-carbon businesses.
Looking ahead, the company’s near-term strategic priorities remain similar to past years. As always, proactively advancing the safety of the company’s assets, protecting the environment, and maintaining system reliability remain the company’s top priorities. The company is focused on enhancing the value of its existing assets through further optimization, capitalizing on the company’s extensive infrastructure to meet evolving customer needs, prioritizing in-franchise organic growth and export-driven opportunities, and continuing to develop lower-carbon platforms across all the company’s businesses.
As an example, the company is continuing to pursue opportunities related to electrification in North America, where the company can utilize its existing gas transmission and distribution infrastructure to safely deliver gas to new and existing power plants being developed, given surging power demand. The company is also pursuing opportunities to build new natural gas infrastructure along its network and within the company’s gas distribution territories, combined with providing gas supply and storage to customers, to support this growth. To complement the company’s natural gas offerings, the company is also able to provide renewable energy solutions (electricity and renewable credits/offsets) to customers, which the company views as a strategic competitive advantage, enabling the company to expand its customer base and further extend the company’s growth.
The company’s key strategic priorities include safety and operational reliability and extend growth.
The company’s renewable power business continues to be well positioned to capitalize on the growth of renewables in North America and Europe through disciplined investment in diversified renewable technologies and selective development in supportive jurisdictions where the company has an established presence.
Business Segments
During 2024, the company’s activities were carried out through four business segments: Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power Generation.
Liquids Pipelines segment
Liquids Pipelines segment consists of pipelines and terminals in Canada and the U.S. that transport and export various grades of crude oil and other liquid hydrocarbons, which delivers approximately six million barrels per day (mmbpd) and is the largest global crude oil and liquids network.
Mainline System
The Mainline System is a common carrier pipeline consisted of the Canadian Mainline and the Lakehead System. The Canadian Mainline transports various grades of crude oil and other liquid hydrocarbons within western Canada and from western Canada to the Canada/U.S. border near Gretna, Manitoba and Neche, North Dakota and from the U.S./Canada border near Port Huron, Michigan and Sarnia, Ontario to eastern Canada. The Canadian Mainline includes six adjacent pipelines with a combined operating capacity of approximately 3.2 mmbpd that connect with the Lakehead System at the Canada/U.S. border, as well as five pipelines that deliver crude oil and refined products into eastern Canada. The Lakehead System is the portion of the Mainline System in the U.S. It is an interstate common carrier pipeline system regulated by the Federal Energy Regulatory Commission (FERC) and is the primary transporter of crude oil and liquid hydrocarbons from western Canada to the U.S.
Tolling Framework
The Mainline Tolling Settlement (MTS) is a negotiated settlement with a term of seven and a half years through the end of 2028 that covers both the Canadian and U.S. portions of the Mainline, except for Lines 8 and 9 which are tolled on a separate basis. Enbridge filed an application with the CER for approval of the MTS on December 15, 2023 and the CER issued an order on March 4, 2024 approving Enbridge’s application as filed. The MTS provides for a Canadian Local Toll for deliveries within western Canada, as well as an International Joint Tariff (IJT) for crude oil shipments originating in western Canada, on the Canadian Mainline, and delivered into the U.S., via the Lakehead System, and into eastern Canada. Under the MTS, the Mainline operates as a common carrier system available to all shippers on a monthly nomination basis.
The MTS includes an IJT, for heavy crude oil movements from Hardisty to Chicago, consisted of an initial Canadian Mainline Toll and an initial Lakehead System Toll, plus the applicable Line 3 Replacement surcharge; and tolls that are distance and commodity adjusted, and utilize a dual currency IJT.
Lakehead System Local Tolls
Transportation rates are governed by the FERC for deliveries from the Canada/U.S. border near Neche, North Dakota, Clearbrook, Minnesota and other points to principal delivery points on the Lakehead System. The Lakehead System periodically adjusts these transportation rates as allowed under the FERC’s index methodology and tariff agreements, the main components of which are index rates and the Facilities Surcharge Mechanism.
The Lakehead tolls are subject to an Offer of Settlement approved by the FERC on November 27, 2023 (Lakehead System Settlement). Lakehead System tolls were revised to reflect the terms of the Lakehead System Settlement effective December 1, 2023.
The Lakehead System Settlement includes: a resolution of litigation related to the index portion of the Lakehead System rate; and a depreciation truncation date of December 31, 2048 for the rate base applicable to the Index and Facilities Surcharge and agreement on the terms for future recovery through the Facilities Surcharge of costs related to two Line 5 projects: the Wisconsin Relocation Project and the Straits of Mackinac Tunnel.
Regional Oil Sands System
The Regional Oil Sands System includes seven intra-Alberta long-haul pipelines: the Athabasca Pipeline, Waupisoo Pipeline, Woodland and Woodland Extension Pipelines, Wood Buffalo and Wood Buffalo Extension/Athabasca Twin pipeline system and the Norlite Pipeline System (Norlite), as well as two large terminals: the Athabasca Terminal located north of Fort McMurray, Alberta and the Cheecham Terminal, located south of Fort McMurray, Alberta. The Regional Oil Sands System also includes numerous laterals and related facilities which provide connectivity for several oil sands customers to the Edmonton and Hardisty areas.
The combined capacity of the intra-Alberta long-haul pipelines is approximately 1,120 thousand barrels per day (kbpd) to Edmonton and 1,415 kbpd into Hardisty, with Norlite providing approximately 218 kbpd of diluent capacity into the Fort McMurray region. The company has a 50% interest in the Woodland Pipeline and a 70% interest in Norlite. The Regional Oil Sands System is anchored by long-term agreements with multiple oil sands producers that provide cash flow stability and also include provisions for the recovery of some of the operating costs of this system.
On October 5, 2022, the company completed a transaction with Athabasca Indigenous Investments Limited Partnership (Aii), a newly created entity representing 23 First Nation and Metis communities, pursuant to which Aii acquired an 11.6% non-operating interest in the seven intra-Alberta long-haul pipelines in the Regional Oil Sands System.
Gulf Coast and Mid-Continent
Gulf Coast includes Flanagan South, Spearhead Pipeline, Seaway Crude Pipeline System (Seaway Pipeline), the Mid-Continent System (Cushing Terminal), Gray Oak, and the EIEC.
Flanagan South is a 950 kilometer (590 mile), 36-inch diameter interstate crude oil pipeline that originates at the company’s terminal at Flanagan, Illinois, a delivery point on the Lakehead System, and terminates in Cushing, Oklahoma. Flanagan South has a capacity of approximately 700 kbpd.
Spearhead Pipeline is a long-haul pipeline that delivers crude oil from Flanagan, Illinois, a delivery point on the Lakehead System, to Cushing, Oklahoma. The Spearhead Pipeline has a capacity of approximately 193 kbpd.
The company has a 50% interest in the 1,078 kilometer (670 mile) Seaway Pipeline, including the 805 kilometer (500 mile), 30-inch diameter long-haul system between Cushing, Oklahoma and Freeport, Texas, as well as the Texas City Terminal and Distribution System which serve refineries in the Houston and Texas City areas. Total aggregate capacity on the Seaway Pipeline system is approximately 950 kbpd. The Seaway Pipeline also includes 8.8 million barrels of crude oil storage tank capacity on the Texas Gulf Coast.
The Mid-Continent System is consisted of storage terminals at Cushing Terminal, consisting of over 110 individual storage tanks ranging in size from 78 to 570 thousand barrels. Total storage shell capacity of Cushing Terminal is approximately 26 million barrels. A portion of the storage facilities are used for operational purposes, while the remainder is contracted to various crude oil market participants for their term storage requirements. Contract fees include fixed monthly storage fees, throughput fees for receiving and delivering crude to and from connecting pipelines and terminals, and blending fees.
Gray Oak is a 1,368 kilometer (850 mile) crude oil system, transporting light crude oil, with origination points in the Eagle Ford and Permian Basins in West Texas. Gray Oak has delivery points at the U.S. Gulf Coast and Houston refining region and has an average annual capacity of 900 kbpd; a planned expansion in 2025 will increase average annual capacity to 1,020 kbpd. The company’s effective economic interest in Gray Oak is 68.5% after the company’s acquisition of Rattler Midstream’s 10% interest in the pipeline in 2023. The company assumed operatorship of Gray Oak in April 2023.
In October 2021, the company acquired 100% of Moda Midstream Operating, LLC, which includes the EIEC, the largest crude oil export terminal by volume in North America. EIEC has an export capability of 1.6 million barrels per day. In 2024, the company added a further 2 million barrels of storage at EIEC, bringing EIEC’s total storage capability to 17.6 million barrels. The company also owns 100% interest in each of the 300-kbpd Viola pipeline, and the 350-thousand barrel Taft Terminal, both located near Corpus Christi, Texas. Additionally, in October 2024 the company completed the acquisition of two marine docks and land adjacent to EIEC from Flint Hills Resources. This acquisition will add crude oil export capacity and streamline existing EIEC operations by increasing Very Large Crude Carrier windows on the primary facility docks. In November 2022, the company acquired an additional 10% ownership interest in Cactus II Pipeline, a pipeline that travels from Wink to Ingleside within Texas, bringing the company’s total non-operating ownership to 30%.
Other
Other includes Southern Lights Pipeline, Express-Platte System, Bakken System and Feeder Pipelines and Other.
The Southern Lights Pipeline is a single stream 180 kbpd 16/18/20-inch diameter pipeline that ships diluent from the Manhattan Terminal near Chicago, Illinois to three western Canadian delivery facilities, located at the Edmonton and Hardisty terminals in Alberta and the Kerrobert terminal in Saskatchewan. Both the Canadian portion and the U.S. portions of the Southern Lights Pipeline receive tariff revenues under long-term contracts with committed shippers. The Southern Lights Pipeline capacity is 90% contracted with the remaining 10% of the capacity assigned for shippers to ship uncommitted volumes. A fully subscribed open season was completed in December 2023, which has ensured contract levels remain at 90% through mid-2030.
The Express-Platte System consists of the Express Pipeline and the Platte Pipeline, and crude oil storage of approximately 5.6 million barrels. It is an approximate 2,736 kilometer (1,700 mile) long crude oil transportation system, which begins at Hardisty, Alberta, and terminates at Wood River, Illinois. The 310 kbpd Express Pipeline carries crude oil to the U.S. refining markets in the Rocky Mountains area, including Montana, Wyoming, Colorado and Utah. The 145 to 164 kbpd Platte Pipeline, which interconnects with the Express Pipeline at Casper, Wyoming, transports crude oil predominantly from the Bakken shale and western Canada to refineries in the Midwest. The Express Pipeline capacity is typically committed under long-term take-or-pay contracts with shippers. A small portion of the Express Pipeline capacity and all of the Platte Pipeline capacity is used by uncommitted shippers who pay only for the pipeline capacity they actually use in a given month.
The Bakken System consists of the North Dakota System and the Bakken Pipeline System. The North Dakota System services the Bakken Basin in North Dakota and is consisted of a crude oil gathering and interstate pipeline transportation system. The gathering system provides delivery to Clearbrook, Minnesota for service on the Lakehead system or a variety of interconnecting pipelines. The interstate portion of the system has both the U.S. and Canadian components that extend from Berthold, North Dakota into Cromer, Manitoba.
Tariffs on the U.S. portion of the North Dakota System are regulated by the FERC. The Canadian portion is categorized as a Group 2 pipeline, and as such, its tolls are regulated by the CER on a complaint basis.
The company has an effective 27.6% interest in the Bakken Pipeline System, which connects the Bakken Basin in North Dakota to markets in eastern Petroleum Administration for Defense Districts (PADD) II and the U.S. Gulf Coast. The Bakken Pipeline System consists of the Dakota Access Pipeline from the Bakken area in North Dakota to Patoka, Illinois, and the Energy Transfer Crude Oil Pipeline from Patoka, Illinois to Nederland, Texas. Capacity is approximately 750 kbpd of crude oil with the potential to be expanded through additional pumping horsepower. The Bakken Pipeline System is anchored by long-term throughput commitments from a number of producers.
Feeder Pipelines and Other includes a number of liquids storage assets and pipeline systems in Canada and the U.S.
Key assets included in Feeder Pipelines and Other are the Hardisty Contract Terminal and Hardisty Storage Caverns located near Hardisty, Alberta, a key crude oil pipeline hub in western Canada and the Southern Access Extension (SAX) Pipeline which originates in Flanagan, Illinois and delivers to Patoka, Illinois. The company has an effective 65% interest in the 300 kbpd SAX pipeline. The majority of the SAX Pipeline's capacity is commercially secured under long-term take-or-pay contracts with shippers.
Feeder Pipelines and Other also includes Patoka Storage, the Toledo pipeline system and the Norman Wells (NW) System. Patoka Storage is consisted of four storage tanks with 480 thousand barrels of shell capacity located in Patoka, Illinois. The 180 kbpd Toledo pipeline system connects with the Lakehead System and delivers to Ohio and Michigan. The 45 kbpd NW System transports crude oil from Norman Wells in the Northwest Territories to Zama, Alberta and has a cost-of-service rate structure based on established terms with shippers.
Crude Oil Marketing segment
The Liquids Pipelines segment also includes the Crude Oil Marketing business in Canada and the U.S., which provides physical commodity marketing and logistical services to North American refiners, producers, and other customers. The business is primarily focused on servicing customers across the value chain and capturing value from quality, time, and location price differentials when opportunities arise. To execute these strategies, the Crude Oil Marketing business transports and stores on both Enbridge-owned and third-party assets using a combination of contracted pipeline, storage, railcar, and truck capacity agreements.
SUPPLY AND DEMAND
The company expects the U.S. demand for Canadian crude oil production will support the use of the company’s infrastructure for the foreseeable future.
The company’s Mainline System was effectively fully utilized in 2024 delivering 3.1 mmbpd. Refinery demand in the upper Midwest PADD II market has been strong. On the U.S. Gulf Coast, lower supply of heavy crude from Latin America and the Middle East continues to drive increased demand for Canadian heavy crude. Many of the refineries connected to the Mainline System are complex and competitive in the global context.
The anticipated combination of long-term demand growth in non-OECD nations, domestic demand contraction over time, and continued production growth in the Permian Basin and WCSB, highlights the importance of the company’s strategic asset footprint and reinforces the need for additional export-oriented infrastructure. The company is well positioned to meet these evolving supply and demand fundamentals through expansion of system capacity for incremental access to the U.S. Gulf Coast, and through further development of the company’s EIEC in Corpus Christi, including the full integration and optimization of the Flint Hills marine docks and land acquired in October 2024.
Gas Transmission
Gas Transmission consists of the company’s investments in natural gas pipelines and gathering and processing facilities in Canada and the U.S., including the U.S. Gas Transmission, Canadian Gas Transmission, the U.S. Midstream and Other assets.
The U.S. Gas Transmission
The U.S. Gas Transmission includes ownership interests in Texas Eastern Transmission, LP (Texas Eastern), Algonquin Gas Transmission, LLC (Algonquin), Maritimes & Northeast (M&N) (U.S. and Canada), East Tennessee Natural Gas, LLC (East Tennessee), Gulfstream Natural Gas System, L.L.C. (Gulfstream), Sabal Trail Transmission, LLC (Sabal Trail), NEXUS Gas Transmission, LLC (NEXUS), Valley Crossing Pipeline, LLC (Valley Crossing), Southeast Supply Header, LLC (SESH), Vector Pipeline L.P. (Vector), Whistler Parent, LLC (Whistler Parent JV), Delaware Basin Residue, LLC (DBR) and certain other gas pipeline and storage assets. The U.S. Gas Transmission business primarily provides transmission and storage of natural gas through interstate pipeline systems for customers in various regions of the northeastern, southern and midwestern U.S.
The Texas Eastern interstate natural gas transmission system extends from supply and demand centers in the Gulf Coast region of Texas and Louisiana to supply and demand centers in Ohio, Pennsylvania, New Jersey and New York. Texas Eastern's onshore system has a peak day capacity of 12.0 billion cubic feet per day (bcf/d) of natural gas on approximately 13,745 kilometers (8,541 miles) of pipeline and associated compressor stations. Texas Eastern is also connected to five affiliated storage facilities that are partially or wholly-owned by other entities within the U.S. Gas Transmission business, including the Tres Palacios Holdings LLC (Tres Palacios) storage facility that the company acquired on April 3, 2023.
The Algonquin interstate natural gas transmission system connects with Texas Eastern’s facilities in New Jersey and extends through New Jersey, New York, Connecticut, Rhode Island and Massachusetts where it connects to M&N U.S. The system has a peak day capacity of 3.1 bcf/d of natural gas on approximately 1,817 kilometers (1,129 miles) of pipeline with associated compressor stations.
M&N U.S. has a peak day capacity of 0.8 bcf/d of natural gas on approximately 552 kilometers (343 miles) of mainline interstate natural gas transmission system, including associated compressor stations, which extends from northeastern Massachusetts to the border of Canada near Baileyville, Maine. M&N Canada has a peak day capacity of 0.5 bcf/d on approximately 885 kilometers (550 miles) of interprovincial natural gas transmission mainline system that extends from Goldboro, Nova Scotia to the U.S. border near Baileyville, Maine. The company has a 78% interest in M&N U.S. and M&N Canada.
East Tennessee’s interstate natural gas transmission system has a peak day capacity of 1.9 bcf/d of natural gas, crosses Texas Eastern’s system at two locations in Tennessee and consists of two mainline systems totaling approximately 2,449 kilometers (1,522 miles) of pipeline in Tennessee, Georgia, North Carolina and Virginia, with associated compressor stations. East Tennessee has an LNG storage facility in Tennessee and also connects to the Saltville storage facilities in Virginia.
Valley Crossing is an approximately 285 kilometer (177 mile) intrastate natural gas transmission system, with associated compressor stations. The pipeline infrastructure is located in Texas and provides market access of up to 2.6 bcf/d of design capacity to the Comisión Federal de Electricidad, Mexico’s state-owned utility.
Vector is an approximately 560 kilometer (348 mile) pipeline travelling between Joliet, Illinois in the Chicago area and Ontario. Vector can deliver 1.7 bcf/d of natural gas, of which 455 million cubic feet per day (mmcf/d) is leased to NEXUS. The company has a 60% interest in Vector.
Gulfstream is an approximately 1,199 kilometer (745 mile) interstate natural gas transmission system with associated compressor stations. Gulfstream has a peak day capacity of 1.4 bcf/d of natural gas from Mississippi, Alabama, Louisiana and Texas, crossing the Gulf Coast to markets in central and southern Florida. The company has a 50% interest in Gulfstream.
Sabal Trail is an approximately 832 kilometer (517 mile) interstate pipeline that provides firm natural gas transportation. Facilities include a pipeline, laterals and various compressor stations. The pipeline infrastructure is located in Alabama, Georgia and Florida, and adds approximately 1.0 bcf/d of capacity enabling the access of onshore gas supplies. The company has a 50% interest in Sabal Trail.
NEXUS is an approximately 414 kilometer (257 mile) interstate natural gas transmission system with associated compressor stations. NEXUS transports natural gas from the company’s Texas Eastern system in Ohio to the company’s Vector interstate pipeline in Michigan, with peak day capacity of 1.4 bcf/d. Through its interconnect with Vector, NEXUS provides a connection to Dawn Hub, the largest integrated underground storage facility in Canada and one of the largest in North America, located in southwestern Ontario adjacent to the Greater Toronto Area. The company has a 50% interest in NEXUS.
SESH is an approximately 462 kilometer (287 mile) interstate natural gas transmission system with associated compressor stations. SESH extends from the Perryville Hub in northeastern Louisiana where the shale gas production of eastern Texas, northern Louisiana and Arkansas, along with conventional production, is reached from six major interconnections. SESH extends to Alabama, interconnecting with 14 major north-south pipelines and three high-deliverability storage facilities and has a peak day capacity of 1.1 bcf/d of natural gas. The company has a 50% interest in SESH.
The Whistler Parent JV holds a 100% interest in Whistler Pipeline, LLC (Whistler), a 450 mile intrastate pipeline with associated compressor stations that extends from the Permian Basin to Agua Dulce, Texas with a capacity of 2.5 bcf/d, a 70% interest in ADCC Pipeline, LLC (ADCC), a 40 mile pipeline that extends from Agua Dulce, Texas to Cheniere Energy’s Corpus Christi LNG export facility with a capacity of 1.7 bcf/d, and a 50% interest in Waha Gas Storage, LLC, a 2.0 bcf gas storage cavern facility connecting to key Permian egress pipelines including Whistler. The company has a 19% interest in the Whistler Parent JV.
DBR holds a 100% interest in Agua Blanca, LLC, Waha Connector, LLC, and Gateway Pipeline, LLC, a combined network of pipelines that connects Permian supply to Whistler and other pipelines transporting natural gas from the Permian Basin to downstream markets, and the remaining 50% interest in Waha Gas Storage, LLC not held by Whistler Parent JV. The company has a 15% interest in DBR.
Transmission and storage services are generally provided under firm agreements where customers reserve capacity in pipelines and storage facilities. The vast majority of these agreements provide for fixed reservation charges that are paid monthly regardless of the actual volumes transported on the pipelines, plus a small variable component that is based on volumes transported, injected or withdrawn, which is intended to recover variable costs.
Interruptible transmission and storage services are also available where customers can use capacity if it exists at the time of the request and are generally at a higher toll than long-term contracted rates. Interruptible revenues depend on the amount of volumes transported or stored and the associated rates for this service. Storage operations also provide a variety of other value-added services including natural gas parking, loaning and balancing services to meet customers’ needs.
Canadian Gas Transmission
Canadian Gas Transmission is consisted of Westcoast Energy Inc.’s (Westcoast) British Columbia (BC) Pipeline, and other minor midstream gas gathering pipelines. It also includes the Aitken Creek Gas Storage facility, located in BC, Canada, which the company acquired on November 1, 2023.
The BC Pipeline provides natural gas transmission services, transporting processed natural gas from facilities located primarily in northeastern BC to markets in BC and the U.S. Pacific Northwest. It has a peak day capacity of 3.6 bcf/d of natural gas on approximately 2,950 kilometers (1,833 miles) of transmission pipeline in BC and Alberta, as well as associated mainline compressor stations. BC Pipeline is regulated by the CER under cost-of-service regulation.
The majority of transportation services provided by Canadian Gas Transmission are under firm agreements, which provide for fixed reservation charges that are paid monthly regardless of actual volumes transported on the pipeline, plus a small variable component that is based on volumes transported to recover variable costs. Canadian Gas Transmission also provides interruptible transmission services where customers can use capacity if it is available at the time of request. Payments under these services are based on volumes transported.
The U.S. Midstream
The U.S. Midstream includes a 13.2% effective economic interest in DCP Midstream, LP (DCP). Prior to August 17, 2022, the company had a 28.3% effective economic interest in DCP. DCP is a joint venture, with a diversified portfolio of assets, engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGL; and recovering and selling condensate. DCP owns and operates more than 32 plants and approximately 86,016 kilometers (53,448 miles) of natural gas and NGL pipelines, with operations in nine states across major producing regions.
Other
Other primarily consists of the company’s offshore assets. Enbridge Offshore Pipelines is consisted of 12 natural gas gathering and FERC regulated transmission pipelines and five oil pipelines. These pipelines are located in four major corridors in the Gulf Coast, extending to deepwater developments, and include almost 2,200 kilometers (1,365 miles) of underwater pipe and onshore facilities with total capacity of approximately 6.6 bcf/d.
In 2023, Enbridge acquired a 10% equity investment in Divert Inc., a RNG infrastructure company, which provides Enbridge with an option to invest in food waste to RNG projects across the U.S.
On January 2, 2024, the company acquired six Morrow Renewables operating landfill gas-to-RNG production facilities located in Texas and Arkansas. The acquired assets align with and advance the company’s low-carbon strategy.
Supply and Demand
The company’s gas transmission assets make up one of the largest natural gas transportation networks in North America, driving connectivity between prolific supply basins and major demand centers within the continent. The company’s systems have been integral to the transition in supply and demand markets over the last decade, and the company expects to continue to play a part as the energy landscape evolves.
Through a series of expansions and reversals on the company’s core systems, combined with the execution of greenfield projects and strategic acquisitions, the company has been able to meet the needs of both producers and consumers. The company’s U.S. Gas Transmission systems were initially designed to transport natural gas from the Gulf Coast to the supply-constrained northeast markets. The company’s asset base now has the capability to transport diverse bi-directional supply to the northeast, southeast, Midwest, Gulf Coast and LNG markets on a fully subscribed and highly utilized basis.
The northeast market continues its role as a predominantly supply constrained region with steady demand. The bi-directional capabilities offered by the company’s U.S. Gas Transmission system allow the company to deliver in an efficient manner to the company’s regional customers. The region has seen an increase in natural gas supply due to the development of the Marcellus and Utica shales in the Appalachia region.
The southeast market is linked to multiple, highly liquid supply pools that include the Marcellus and Utica shale developments, offering consistent supply and stable pricing to a growing population of end-use customers across the company’s multiple systems under long-term, utility-like arrangements.
With connectivity to Appalachian and western Canadian supply through the company’s Westcoast Pipeline, the Midwest market has access to two of the lowest cost gas producing regions on the continent.
Western Canada is also a source of supply seeking access to premium markets in North America and globally. One of the few vital links to demand centers in the Pacific Northwest is the company’s BC Pipeline, which is highly utilized. The continental supply profile has shifted to natural gas shale plays such as the Montney and Duvernay within western Canada. These plays are expected to fulfill an integral role as Canada enters the global market as an LNG exporter. Western Canada's production is forecasted to increase from 18 bcf/d in 2024 to 23 bcf/d by 2040. This growth will support an additional 5 bcf/d of LNG exports.
The company is responding to the need for regional infrastructure with additional investments in Canadian and the U.S. gas transportation facilities.
Gas Distribution and Storage
Gas Distribution and Storage consists of the company’s rate-regulated natural gas utility operations, which serves residential, commercial and industrial customers in Ontario, Quebec, Ohio, North Carolina, Utah, Wyoming, and Idaho, as well as Wexpro Company (Wexpro), which develops and produces natural gas reserves on behalf of Enbridge Gas Utah, Enbridge Gas Wyoming, and Enbridge Gas Idaho. The company’s distribution systems, which are supported by storage and compression assets, carry natural gas from the point of local supply to customers across North America.
There are three principal interrelated aspects of the natural gas distribution business in which the company’s franchises are directly involved: Distribution, Transportation and Storage.
The company’s storage system principally consists of the company’s assets at Dawn Hub and the Tecumseh Gas Storage facility.
Distribution
The principal source of revenue for Gas Distribution and Storage arises from the distribution of natural gas to customers. The services provided to residential, small commercial and industrial heating customers are primarily on a general service basis. The services provided to larger commercial and industrial customers are usually on an annual contract basis under firm or interruptible service contracts. Under a firm contract, the company is obligated to deliver natural gas to the customer up to a maximum daily volume. The service provided under an interruptible contract is similar to that of a firm contract, except that it allows for service interruption at the company’s option primarily to meet seasonal or peak demands. The respective regulator for each province or state approves rates for both contract and general services.
Customers have a choice with respect to natural gas supply. Customers may purchase and deliver their own natural gas to points upstream of the distribution system or directly into the company’s distribution systems, or, alternatively, they may choose a system supply option, whereby customers purchase natural gas from the company’s supply portfolio. A significant portion of the company’s customers in Ohio participate in the Energy Choice program, under which residential customers are encouraged to purchase gas directly from retail suppliers or through a community aggregation program and have it delivered by the company. Customers in the company’s other franchise areas predominantly purchase gas from the company’s diversified natural gas supply portfolio, which the company maintain by acquiring supplies on a delivered basis, as well as acquiring supply from multiple supply basins across North America. Certain of the company’s U.S. Gas Utilities have a revenue decoupling mechanism whereby non-gas revenues are decoupled from the temperature-adjusted usage per customer, which allows for the collection of an allowed monthly revenue per customer and to promote energy conservation.
Transportation
The company’s gas utility franchises also offer transportation services to move gas through the areas the company operates in to key markets throughout North America. Enbridge Gas Ontario contracts for firm transportation service, primarily with TransCanada Pipelines Limited, Vector and NEXUS, to meet its annual natural gas supply requirements. The transportation service contracts are not directly linked with any particular source of natural gas supply. Separating transportation contracts from natural gas supply provides flexibility in obtaining its own natural gas supply and accommodating the requests of its direct purchase customers for assignment of pipeline capacity.
In addition to contracting for transportation service, Enbridge Gas Ontario offers firm and interruptible transportation services on its own Dawn-Parkway pipeline system. Enbridge Gas Ontario’s transmission system also links an extensive network of underground storage pools at the Tecumseh Gas Storage facility and Dawn Hub (collectively, Dawn) to major Canadian and the U.S. markets, and forms an important link in moving natural gas from western Canada and the U.S. supply basins to central Canadian and northeastern U.S. markets.
As the supply of natural gas in areas close to Ontario has continued to grow, there has been increased demand to access these diverse supplies at Dawn and transport them along the Dawn-Parkway pipeline system to markets in Ontario, eastern Canada and the northeastern U.S. A substantial amount of Enbridge Gas Ontario’s transportation revenue is generated by fixed annual demand charges.
Enbridge Gas Ohio system expansion projects over the last decade have provided the opportunity to offer transportation services as an attractive outlet for shale production, by virtue of its proximity to the Utica and Marcellus shale basins while enhancing on-system operational flexibility.
Storage
The company’s gas distribution business is highly seasonal as daily market demand for natural gas fluctuates with changes in weather, with peak consumption occurring in the winter months. Utilization of storage facilities permits the company to take delivery of natural gas on favorable terms during off-peak summer periods for subsequent use during the winter heating season.
The storage facility at Dawn is located in southwestern Ontario and has a total working capacity of approximately 284 bcf in 33 underground facilities located in depleted gas fields. Dawn is the largest integrated underground storage facility in Canada and one of the largest in North America. Approximately 180 bcf of the total working capacity is available to Enbridge Gas Ontario for utility operations. There is approximately 60 bcf of underground storage in Ohio that provides additional flexibility for system reliability and managing the cost of supply for customers.
Dawn offers customers an important link in the movement of natural gas from western Canadian and the U.S. supply basins to markets in central Canada and the northeast U.S. Dawn's configuration provides flexibility for injections, withdrawals and cycling. Customers can purchase both firm and interruptible storage services at Dawn. Dawn offers customers a wide range of market choices and options with easy access to upstream and downstream markets. A substantial amount of Enbridge Gas Ontario’s storage revenue is generated by fixed annual demand charges.
The company’s gas distribution systems are regulated by the OEB, the Quebec Regie de l’energie, the Public Utilities Commission of Ohio (Ohio Commission), the North Carolina Utilities Commission (North Carolina Commission), the Utah Public Service Commission (Utah Commission), the Wyoming Public Service Commission (Wyoming Commission), and the Idaho Public Utilities Commission (Idaho Commission).
Supply and Demand
The company anticipates that demand for natural gas in North America will stabilize over the long term with potential growth in peak day demands and from the data center build-out.
Enbridge continues to focus on promoting conservation and energy efficiency by undertaking activities focused on reducing natural gas consumption through various demand side management programs offered across all markets and sourcing supply with a smaller carbon footprint. In addition to the company’s existing and proposed RNG programs, the company is also continuing its efforts to source other lower-carbon supplies, such as hydrogen.
Enbridge Gas Utah, Enbridge Gas Wyoming and Enbridge Gas Idaho have a cost-of-service agreement with Wexpro, which develops and produces natural gas reserves on behalf of the utility. Wexpro's operations stretch from the northern tip of the Greater Green River Basin in Pinedale, Wyoming, through the Vermillion Basin of Wyoming and Colorado, down to the Uinta Basin of Utah. Wexpro establishes its annual drilling program by forecasting the utility's consumption needs.
Operating since December 2022, Magna LNG is a 1.2 bcf LNG facility located in Magna, Utah. The facility provides system reliability for Enbridge Gas Utah's customers in Salt Lake City and the surrounding counties. LNG is produced primarily during the warmer months of the year and then stored to be used when needed for reliability.
Renewable Power Generation
Renewable Power Generation primarily consists of investments in wind and solar assets, as well as equity interests in geothermal power and power transmission assets. In North America, assets are primarily located in the provinces of Alberta, Ontario and Quebec, and in the states of Colorado, Texas, Indiana, Ohio and West Virginia. In Europe, the company holds equity interests in operating offshore wind facilities in the coastal waters of the United Kingdom, France, and Germany, as well as interests in several offshore wind projects under construction and active development in France and the United Kingdom.
Combined Renewable Power Generation investments represent approximately 3,500 MW of net generation capacity, which primarily consists of approximately 1,399 MW generated by North American wind facilities; approximately 621 MW generated by European offshore wind facilities; approximately 97 MW expected to be generated by the Calvados Offshore Wind Project in France, which is under construction; and approximately 440 MW generated by North American solar facilities in operation, with an additional 945 MW in projects in pre-construction and under construction.
The vast majority of the power produced from these facilities is sold under long-term PPAs.
Joint Ventures / Equity Investments
Most of the company’s investments in Canadian wind and solar assets and two of the company’s U.S. renewable assets are held within a joint venture in which the company manages and operates a 51% interest. One of its U.S. solar projects is held within a separate joint venture in which the company holds a 50% interest.
The company also owns interests in European offshore wind facilities through the following joint ventures: a 24.9% interest in Rampion Offshore Wind, located in the United Kingdom; a 49.9% interest in Hohe See and Albatros Offshore Wind, located in Germany; a 25.5% interest in the Saint-Nazaire Offshore Wind Project, located in France; a 25% interest in the Provence Grand Large Floating Offshore Wind Project, located in France; a 17.9% interest in the Fecamp Offshore Wind Project, located in France; and a 21.7% interest in the Calvados Offshore Wind Project, under construction in France.
The company, through its European joint ventures, continues to invest in offshore wind projects in the United Kingdom, France and Germany, and to explore opportunities to meet the growing demand.
Eliminations and Other
The principal activity of the company’s captive insurance subsidiaries is providing insurance and reinsurance coverage for certain insurable property and casualty risk exposures of the company’s operating subsidiaries and certain equity investments. Eliminations and Other also includes new business development activities and corporate investments, and natural gas and power marketing and logistical services to North American refiners, producers, and other customers.
Regulation
In the U.S., the company’s interstate pipeline operations are subject to pipeline safety laws and regulations administered by the Pipeline and Hazardous Materials Safety Administration (PHMSA), an agency within the United States Department of Transportation (DOT). These laws and regulations require the company to comply with a significant set of requirements for the design, construction, maintenance and operation of the company’s interstate pipelines. These laws and regulations, among other things, include requirements to monitor and maintain the integrity of the company’s pipelines and to operate them within permissible design limits such as pressures.
The company’s ability to establish transportation and storage rates on its U.S. interstate natural gas facilities are subject to regulation by the FERC, whose rulings and policies could have an adverse impact on the ability of such pipeline and storage assets to recover their respective full cost of operating, including a reasonable rate of return.
In Canada, the company’s pipeline operations are subject to pipeline safety regulations administered by the CER or provincial regulators. Applicable legislation and regulations require the company to comply with a significant set of requirements for the design, construction, maintenance and operation of the company’s pipelines. Among other obligations, this regulatory framework imposes requirements to monitor and maintain the integrity of the company’s pipelines.
The company’s pipelines are subject to the actions of various regulators, including the CER and the FERC, with respect to tariffs and tolls.
Enbridge Gas Ontario's operations are regulated by the OEB and Enbridge Gaz Quebec's operations are regulated by the Quebec Regie de l’energie.
The company’s U.S. utilities operations are regulated by the Ohio Commission, the Utah Commission, the Wyoming Commission, the Idaho Commission, and the North Carolina Commission, as well as PHMSA and the U.S. DOT.
Enbridge Gas Ohio is subject to regulation of rates and other aspects of its business by the Ohio Commission.
In October 2023, Enbridge Gas Ohio filed its base rate case and schedules with the Ohio Commission.
Enbridge Gas Utah, Enbridge Gas Wyoming, and Enbridge Gas Idaho are subject to regulation of rates and other aspects of its business by the Utah Commission, the Wyoming Commission, and the Idaho Commission, respectively. The Idaho Commission has contracted with the Utah Commission for rate oversight of Enbridge Gas Idaho’s operations in a small area of southeastern Idaho.
Enbridge Gas North Carolina is subject to regulation of rates and other aspects of its business by the North Carolina Commission.
The North American Electric Reliability Council (NERC) is an international regulatory authority responsible for establishing and enforcing reliability standards to reduce risks to the reliability and security of the grid in Canada, the U.S., and Mexico. It is subject to oversight from the FERC in the U.S. and provincial governments in Canada.
At the U.S. federal level, the company’s Renewable Power Generation assets are subject to legislation overseen by the U.S. Fish and Wildlife Service, which is aimed at reducing the impact of development and human activity on wildlife, along with other federal environmental permitting legislation.
The company’s Renewable Power Generation assets in France and Germany each have federal policies in place and are subject to directives and regulations established and enforced by the European Union (EU). These include the Renewable Energy Directive, the European Green Deal, and ongoing work on financing mechanisms and transmission directives and programs.
Environmental Regulation
Some equipment in states in which the company operates are affected by the Good Neighbor Rule establishing new emission limits for nitrogen oxides.
The company’s U.S. gas distribution operations are subject to various federal and state laws and regulations governing the management, storage, treatment, reuse, and disposal of waste materials and hazardous substances. These include the Resource Conservation and Recovery Act of 1976, Comprehensive Environmental Response, Compensation, and Liability Act, the Emergency Planning and Community Right-to-Know Act of 1986, and the Toxic Substances Control Act of 1976.
In Canada, the company’s Renewable Power Generation assets are subject to the federal Species at Risk Act and provincial regulations that are aimed at mitigating the effects of development and human activity on wildlife. At the U.S. federal level, the company’s assets are subject to legislation overseen by the U.S. Fish and Wildlife Service, which is similarly aimed at reducing the impact of development and human activity on wildlife, along with other federal environmental permitting legislation.
History
The company was founded in 1949. It was incorporated in 1970 under the Companies Ordinance of the Northwest Territories and was continued under the Canada Business Corporations Act in 1987. The company was formerly known as Interprovincial Pipe Line System Inc. and changed its name to IPL Energy Inc. in 1994. Further, the company changed its name to Enbridge Inc. in 1998.
