As concerns rise about Canada's reliance on the U.S. for energy exports, Enbridge Inc. chief executive Greg Ebel says getting a big new energy export project off the ground in this country would require drastic shifts in government policy.
Speaking on an earnings call, he laid out numerous criteria such as legal guarantees for a pipeline, the removal of various environmental policies, more funding for Indigenous participation and better indications of costs and financial returns before the company would consider reviving something like the Northern Gateway pipeline or other export projects.
"For us to be willing to seriously consider reinvesting in a project like that, whether it's east or west or just west, we need to see real change on numerous fronts," said Ebel.
He said he'd want to see legislative changes at both the federal and provincial level identifying an energy project as in the national interest and so legally required, as well as the removal of policies like an emissions cap, carbon tax and new environmental assessment rules.
"A lot of co-ordinated federal, and pan-provincial legislative and regulatory action would be required before we think investors, management teams, or customers would be able to green light such projects."
Enbridge and its investors lost hundreds of millions of dollars when the federal government rejected plans for the Northern Gateway pipeline in 2016 as they were nearing the finish line, he said.
"That's a powerful learning."
The proposed Northern Gateway project would have exported crude from the northern coast of B.C., a route the federal government decided was too environmentally risky and rejected it at the same time as it approved the Trans Mountain pipeline expansion, which went on to cost more than $34 billion to build.
The recent threats of tariffs and other aggression from the U.S. has revived questions about finding new export routes for Canadian energy.
Ebel said he's encouraged there's more of a conversation going on about exports, but it will have to go well beyond talk before the company considers a shift in its approach.
"They're saying the right things, but it's going to take real actions, laws, regulation to attract the capital."
His comments came as TC Energy Corp., which had proposed the Energy East crude pipeline in 2013, said Friday that it was focusing discretionary spending on the U.S., and that Canada would have to work to compete for capital.
While Ebel said it was good that Canada was talking about new export options because of tariff threats, he also downplayed what effect they may have on the company's existing energy exports.
"We've got tariff concerns out there, but there's such a hard-wiring of the energy system in North America, we just don't see that as a material impact. And I think given what we're seeing from customers, that's actually bearing out in reality."
He said the company doesn't expect much change in its spending plans on projects and regions unless the tariffs are very high and remain for a prolonged time.
Ebel said the company continues to invest in its crude and natural gas export projects and doesn't see significant change in the near-term, while suggesting a big Canadian export isn't something they're considering anyway.
"You know, we talked a little bit about major east-west projects, but I'm not 100 per cent sure, or just west projects, those are gonna happen any time soon."
His comments came as Enbridge reported a profit attributable to common shareholders of $493 million in its fourth quarter, down from $1.73 billion a year earlier.
The pipeline company says the profit amounted to 23 cents per share for the quarter ended Dec. 31, down from 81 cents per share in the last three months of 2023.
On an adjusted basis, Enbridge says it earned 75 cents per share in its latest quarter, up from an adjusted profit of 64 cents per share a year earlier, and in line with analyst expectations.
This report by The Canadian Press was first published Feb. 14, 2025.
Companies in this story: (TSX:ENB)
Ian Bickis, The Canadian Press
