Enbridge Bails on Western Canada Pipeline Venture Due to Regulatory Hurdles

Enbridge's CEO Greg Ebel has ruled out leading or funding a new oil pipeline from Alberta to British Columbia. The company is not willing to take on the financial risks associated with constructing the pipeline, despite requests for technical guidance from the Alberta government.

The cancellation of Enbridge's $7.9-billion Northern Gateway project in 2016 still weighs heavily on Ebel's mind. He recalled how the company poured $600 million into the project before it was abruptly cancelled due to regulatory hurdles and a Federal Court of Appeal decision.

Enbridge is one of three energy infrastructure firms asked by the Alberta government to lend expertise for a prospective pipeline to the West Coast. Premier Danielle Smith's administration aims to secure a national interest designation for the pipeline, which would boost Canada's export diversification, particularly towards Asian markets.

Ebel emphasized that Enbridge would only take on construction risk once a project is fully approved. The company has recently secured approximately $14 billion in new projects and anticipates final investment decisions on an additional $10 billion to $20 billion in growth projects over the coming two years.