Enbridge Sees Higher 2023 Profit, Joins Occidental on Carbon Capture Project

(Reuters) — Canada's biggest pipeline operator Enbridge Inc. on Wednesday forecasted higher 2023 core earnings, banking on sustained high demand for oil and gas amid tight supplies.

The Calgary-based firm also said it will develop a carbon dioxide sequestration hub with a unit of U.S. shale producer Occidental Petroleum Corp. in the Corpus Christi area of Texas.

Demand for oil and gas has surged following Russia's invasion of Ukraine as sanctions against Moscow left Europe scrambling to find alternate gas supplies and improve long-term energy security.

This led to record U.S. LNG export volumes and renewed interest in boosting Canada's LNG industry. Enbridge earlier in November outlined expansion plans for the southern segment of its British Columbia gas pipeline system.

The company also raised its quarterly dividend by 3.2% to 88.75 Canadian cents per share, and said it plans to renew its share repurchase program for 2023, allowing it to buy back up to C$1.5 billion ($1.11 billion) worth of shares.

It expects 2023 core earnings between C$15.9 billion and C$16.5 billion, higher than its 2022 expectations of C$15 billion to C$15.6 billion.

Enbridge and Occidental's unit will together develop and market the carbon dioxide pipeline transportation and sequestration services to other third-party emitters in the Ingleside and Corpus Christi areas.

Occidental's carbon capture progress is closely watched by the oil industry for its scale. Its main plant has a goal of removing up to 1 million tonnes of carbon dioxide from the atmosphere per year - 100 times more than all the 18 direct air capture plants operating worldwide combined, according to the International Energy Agency.

U.S. shares of Enbridge were up 1.6% at $41.50 in premarket trade, while Occidental was up 1.3% at $69.99.

($1 = 1.3512 Canadian dollars)

Related News


{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}