Enbridge to build pipeline to service new LNG facility in U.S.
Energy transportation giant Enbridge Inc. will be going ahead with two pipeline projects to service a new liquefied natural gas facility in the U.S., part of the Canadian company's push to grow its LNG business as global demand soars.
The Calgary-based pipeline company announced Thursday it will transport 1.5 billion cubic feet per day of natural gas from basins in the U.S. to Venture Global's recently sanctioned Plaquemines LNG plant in Plaquemines Parish, Louisiana.
U.S.-based LNG company Venture Global announced on Wednesday that it will go ahead with the first phase of construction of the Plaquemines LNG facility, after securing US$13.2 billionin financing.
According to Venture Global -- whose first LNG facility, also in Louisiana, began exporting earlier this year -- that figure represents the largest project financing transaction that has closed so far this year.
Enbridge said it will be going ahead with its Venice Extension Project and Gator Express Meter Project to deliver 1.5 billion cubic feet per day of natural gas to the LNG plant. The estimated cost for the two projects is US$400 million, underpinned by long-term contracts, the company said.
The announcement comes as U.S. benchmark natural gas prices topped US$9 per mmBTU this week amid concerns about global energy security and the war in Ukraine.
Enbridge chief executive Al Monaco has been vocal in recent months about his belief that natural gas exports represent the largest opportunity for North America right now, and he has said that Enbridge is seeing a strong pick up in commercial interest from Asia and Europe to secure export capacity.
The Plaquemines facility, which will have an export capacity of up to 20 million metric tonnes of LNG per year when fully developed, will be the fifth LNG facility on the U.S. Gulf Coast served by Enbridge pipelines. The company currently serves four operating LNG facilities in the region, and Monaco said earlier this month that it has secured projects to serve two additional proposed facilities (Rio Grande and Texas LNG) if they go ahead.
In addition to LNG, Enbridge is also banking on increased crude oil exports from the U.S. Gulf Coast. Last fall, it acquired U.S.-based terminal and logistics company Moda Midstream Operating LLC for US$3 billion.
As part of the deal, Enbridge acquired North America's largest crude export terminal, the Ingleside Energy Center located near Corpus Christi, Texas, which handles about 25 per cent of all U.S. Gulf Coast crude exports.
This report by The Canadian Press was first published May 26, 2022.
CTVNews.ca Top Stories
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.