Enbridge Completes Partnership Agreement in Woodfibre LNG
Enbridge Inc. has finalized its partnership with Pacific Energy Corporation to invest in the Woodfibre LNG project in Squamish, B.C. Enbridge will hold a 30% stake while Pacific Energy retains 70%. The companies will contribute capital through asset financing and equity investments, with Enbridge receiving preferred equity for predictable cash flows. Preliminary construction has begun, and the project targets a Q4 2027 in-service date. The partnership underscores Enbridge's commitment to energy infrastructure and investment in liquefied natural gas.
- Enbridge holds a 30% stake in the Woodfibre LNG project, enhancing its portfolio in the LNG sector.
- The partnership with Pacific Energy aims for predictable future cash flows via preferred equity interests.
- Preliminary construction activities are already underway, indicating project momentum.
- The project's in-service date is projected for Q4 2027, suggesting extended timelines before revenue generation.
- Dependence on various external factors such as labor availability and inflation may pose risks to project completion.
CALGARY, AB, Nov. 29, 2022 /PRNewswire/ - Enbridge Inc. (Enbridge or the Company) (TSX: ENB) (NYSE: ENB) announced today that it has completed the previously announced transaction relating to its partnership agreement with Pacific Energy Corporation Limited (Pacific Energy) to jointly invest in the construction and operation of the Woodfibre LNG project, located near Squamish, B.C. Enbridge now has a
Pacific Energy and Enbridge will each make pro-rata contributions during construction through a combination of expected asset level financing and equity investments. In exchange for its capital contribution, Enbridge will receive a preferred equity interest that provides predictable future cash flows. The partners will jointly participate in the project's execution and governance of ongoing operations, while Pacific Energy retains responsibility for daily operations.
Preliminary construction activities, including site preparation are underway. The project remains on track for its targeted in-service date of Q4 2027.
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with respect to Woodfibre LNG project and Enbridge's investment therein, including expected in service dates, and anticipated financing and capital contributions.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, natural gas liquids, liquified natural gas, renewable energy and other commodities, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services and other energy-related services and products. Similarly, energy transition, including the drivers and pace thereof, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's and others' services and products and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated in-service dates and the realization of anticipated benefits, include the following: the impact of litigation and government, regulatory and stakeholder actions and approvals on construction and in-service schedules; the availability and price of labour and construction materials; the stability of the supply chain; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; technology-related matters; the impact of weather; and expectations about our partners' ability to complete and finance proposed projects.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge
At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil or renewable power networks and our growing European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on two decades of experience in renewable energy to advance new technologies including wind and solar power, hydrogen, renewable natural gas and carbon capture and storage. We're committed to reducing the carbon footprint of the energy we deliver, and to achieving net zero greenhouse gas emissions by 2050.
Headquartered in Calgary, Alta., Enbridge's common shares trade under the symbol ENB on the Toronto (TSX) and New York (NYSE) stock exchanges. To learn more, visit us at Enbridge.com
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SOURCE Enbridge Inc.
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