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Created before Nov 2016
Last update: 2016-10-31 00:00:00
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|Sectors||Oil and Gas Extraction, Pipeline Transportation of Crude Oil, Pipeline Transportation of Natural Gas|
listed on NYSE & Toronto Stock Exchange
Enbridge Energy Partners – United States
Enbridge is a Canadian multinational energy transportation company based in Calgary, Alberta. It was originally incorporated by Imperial Oil in 1949 as the Interprovincial Pipeline Company (IPL). IPL Energy became Enbridge in 1998. Enbridge focuses on the transportation, distribution and generation of energy, primarily in North America. As a transporter of energy, Enbridge has operations in Canada and the United States. The company owns the longest crude oil and liquid hydrocarbons transportation system in North America. As a distributor of various fuels, it owns and operates Canada's largest natural gas distribution network. In Sept 2018 Enbridge bought Spectra Energy, a US oil and gas pipeline company. Other subsidiaries are Enbridge Energy Partners and Westcoast Energy.
Why this profile?
Enbridge is a Canadian energy company mainly involved in gas and crude oil distribution. It owns 38,375 kilometers of gas pipelines in 30 U.S. states, five Canadian provinces and offshore in the Gulf of Mexico. In addition, it operates 27,564 kilometres of oil pipelines and is currently working to expand pipeline capacity with its Line 3 Replacement Project, which is completely incompatible with the goals of the Paris Agreement. With a long history of oil spills from its pipelines, Enbridge is responsible for severe environmental pollution in North America.
Social and human rights impacts
Indigenous Peoples Rights Enbridge's Line 3 pipeline threatens the cultural survival of the Ojibwe Indigenous People. The route would pierce the heart of the 1855 Treaty territory, where the members of Ojibwe bands retain their rights to hunt, fish, harvest wild rice, conduct religious ceremonies and travel. Wild rice lies at the core of Ojibwe identity and culture. Because of its key cultural role, wild rice harvesting is explicitly defined as a right in the treaties of several bands of Ojibwe with the U.S. Government. The Line 3 pipeline would send nearly one million barrels of tar sands per day through wild rice beds. The Mille Lacs, Red Lake and White Earth Nations bands have not given their Free, Prior and Informed Consent to the Line 3 Pipeline project (for more information see here).
Environmental and climate impacts
Enbridge gets mixed reviews after setting 2050 net-zero target
Enbridge Inc. is getting mixed reviews after becoming the biggest fossil in North America to set sights on net-zero greenhouse gas emissions by 2050, beginning with a 2030 target to reduce the emissions intensity of its operations by 35%. Greenpeace Canada Senior Energy Strategist Keith Stewart said Enbridge’s announcement read more like marketing than real progress. “Investors want to see real decarbonization plans, and until Enbridge accepts the challenge of becoming a 100% renewable energy company, this is simply greenwashing,” he told the Globe. “Using solar energy to power the pumps that push oil and gas through your pipelines can’t hide the fact that you’re still selling fossil fuels.” (The Energy Mix)
Enbridge buys NextDecade's Rio Bravo Pipeline
Enbridge entered into a definitive agreement on Feb. 13, 2020 whereby Enbridge would acquire Rio Bravo Pipeline Company, LLC (RBPL) from NextDecade for a cash purchase price not to exceed $25 million, with $15 million paid at closing and the balance paid upon NextDecade’s reaching a positive final investment decision (FID) on its Rio Grande LNG export facility in the Port of Brownsville, Texas. The Rio Bravo Pipeline Project is designed to transport up to 4.5 billion cubic feet per day of natural gas from the Agua Dulce supply area to NextDecade's Rio Grande LNG project in Brownsville, Texas. (Enbridge)
As of 31 December 2020, Enbridge's credit facilities amount to CAD 23.9 billion of which CAD 12.3 billion is still available (2020 Annual Report, page 80).
On February 10th 2021, Enbridge secured a three-year USD 1.0 billion Sustainability Linked Credit Facility with CIBC, Scotiabank, Bank of Montreal (BMO Capital Markets), RBC Capital Markets and TD Securities. These financial institutions are also the five biggest funders of Enbridge: from 2016 to 2020 they dedicated USD 48.45 billion to the company – including USD 9.11 billion in 2020 alone. (ReclaimFinance).
On 6 July 2020, Enbridge issued a USD 1 billion bond due 2080. Arrangers: JP Morgan, Barclays, Citigroup, Credit Suisse, Sumitomo Mitsui Banking Corp, Mizuho Bank, MUFG Bank. (IJGlobal).
On 20 February 2020, Enbridge issued a USD 750 million bonds, due 1 February 2022. Bond arrangers were JP Morgan, Bank of America Merrill Lynch. The proceeds will be used for the refinancing of existing debt and energy operations. (IJGlobal).
Based on Enbridge's annual reports, other outstanding loans include:
- USD 210 million to Enbridge Energy Partners, maturing Sept 26 2022, led by Bank of America, Mizuho, Royal Bank of Canada;
A July 18, 2019 non-revolving bilateral credit facility for CAD 500 million with an Asian bank.
A May 16, 2019 non-revolving credit facility for CAD 641 million to Enbridge Inc with a syndicate of Japanese banks, likely MUFG, Mizuho and SMBC.
Specific banks involved are listed below.