8-K

ENBRIDGE INC 8-K Report (Sep 1, 2015)

Filed September 1, 2015For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This 8-K filing by Enbridge Inc. (ENB) on September 1, 2015, primarily incorporates a press release dated August 24, 2015. The press release details an agreement in principle reached between Eastern Local Distribution Companies (LDCs), including Enbridge Gas Distribution, and TransCanada Pipelines regarding the proposed Energy East oil pipeline project. The core of the agreement is to resolve concerns that the conversion of an existing natural gas pipeline to oil service by TransCanada would impact natural gas supply to Quebec and Ontario. The agreement ensures firm transportation capacity for natural gas to these provinces and aims to protect natural gas consumers' interests. Notably, it stipulates that natural gas customers will not subsidize the oil project; instead, TransCanada will bear the construction and development cost risks.

Key Highlights

  • 1Enbridge Gas Distribution, along with Gaz Métro and Union Gas, has reached an agreement in principle with TransCanada Pipelines.
  • 2The agreement addresses concerns regarding the impact of TransCanada's proposed Energy East oil pipeline project on natural gas supply to Quebec and Ontario.
  • 3The agreement ensures continued firm transportation capacity for natural gas to these provinces.
  • 4Natural gas consumers in Quebec and Ontario are expected to benefit approximately $100 million through 2050 if the Energy East project proceeds.
  • 5The agreement prevents natural gas customers from subsidizing the Energy East oil project.
  • 6Construction and development cost risks for the Energy East project will be borne by TransCanada.
  • 7A definitive agreement is targeted to be concluded by October 30, 2015.

Frequently Asked Questions

The main purpose is to announce an agreement in principle between Eastern Local Distribution Companies (LDCs), including Enbridge Gas Distribution, and TransCanada Pipelines. This agreement resolves concerns about TransCanada's Energy East oil pipeline project impacting natural gas supply to Quebec and Ontario.

The agreement ensures firm transportation capacity for natural gas supply and provides an estimated benefit of approximately $100 million to natural gas customers through 2050, provided the Energy East project moves forward. It also ensures that these customers will not bear any costs or risks associated with the oil project.

TransCanada is expected to amend its application for the Eastern Mainline Project with the National Energy Board to reflect the agreement. The parties (Gaz Métro, Enbridge Gas, Union Gas, and TransCanada) intend to finalize a definitive agreement by October 30, 2015.

No, the agreement states that natural gas customers will not subsidize the oil project. The construction and development cost risks for the Energy East project will be borne by TransCanada, not by Enbridge Gas Distribution or its customers.