ENBRIDGE WILL SPEND $500 MILLION ON PIPELINE NETWORK AND RAISES PROFIT TARGETS

Enbridge, a North American pipeline operator based in Calgary, Alberta, announced on Wednesday its plans to enhance its U.S. Gulf Coast presence by investing $500 million in expanding pipeline and storage assets. This move comes as part of the company's strategy to bolster its short-term profit growth forecast.

The firm raised its core profit growth projection for the short term to between 7% and 9% through 2026, up from the previous estimate of 4%-6% through 2025. This upward revision is attributed primarily to Enbridge's $14 billion acquisition of three U.S. gas utility companies from Dominion Energy. As the operator of North America's largest oil pipeline network, known as the Mainline, Enbridge foresees a significant increase in Western Canadian oil production. It expects production to grow by 500,000 barrels per day, or 10%, through 2025. Consequently, this growth trajectory is anticipated to fill pipeline capacity to 99% by 2026.

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