Enbridge will not take on the development risk of building a proposed new oil pipeline from Alberta to Canada's West Coast, CEO Gregory Ebel said Friday, noting the long timelines and shifting political landscape.
Enbridge was selected by Alberta's provincial government to provide technical and regulatory expertise related to a potential new pipeline, but Ebel said the uncertainty around the project made it difficult to justify committing significant capital.
"I don't think investors or the infrastructure companies should be taking on all that risk of development in jurisdictions that have historically created challenges," Ebel said on Enbridge's earnings comference call, according to Bloomberg, adding the company does not need to pursue such opportunities given its existing slate of projects.
Enbridge executives also said increased Venezuelan crude exports would not undermine its plans to send more Alberta oil sands barrels to Texas refineries.
"The U.S. Gulf Coast is the world's best heavy refining market, and Canadian crude is a meat-and-potato part of the diet there," Colin Gruending, Enbridge's head of liquids pipelines, said on the call.
More on this story at MSN.
