Enbridge expanded its secured project backlog to approximately C$41 billion during the second quarter of 2026 as the company advanced new pipeline infrastructure connecting North American natural gas supplies with growing liquefied natural gas export demand.
The company added more than C$1 billion to the backlog through the sanctioning of its Line 5 Relocation project in Wisconsin.
Enbridge expects to fund its secured growth program through annual investment capacity of between C$10 billion and C$11 billion.
The backlog therefore represents nearly four years of investment at the company’s normal annual growth-capital rate.
Enbridge has sanctioned approximately C$9 billion of projects since the beginning of 2026 and remains on track toward its target of announcing between C$10 billion and C$20 billion of new projects during 2026 and 2027.
Natural gas infrastructure represents a major portion of the new opportunity set.
Enbridge signed an exclusive option to acquire the TTC Connector, an under-construction pipeline connecting the company’s Tres Palacios natural gas storage facility to the Coastal Bend Header for delivery to Freeport LNG.
The 25-mile pipeline is designed to transport 300 million cubic feet of natural gas per day.
Long-term service agreements with bp cover all of the pipeline’s available capacity. Enbridge will have the option to acquire the project at what it described as an accretive valuation after the pipeline enters service.
The structure allows Enbridge to expand its Gulf Coast network without assuming the full construction and development risk before the project becomes operational.
The company also sanctioned the Bay Runner Twin through its Whistler Pipeline joint venture.
The project will provide as much as 2.6 billion cubic feet per day of additional capacity between Agua Dulce and NextDecade’s Rio Grande LNG facility in Texas.
All incremental capacity is supported by long-term take-or-pay agreements, and the pipeline is expected to enter service by 2030.
Under take-or-pay contracts, customers generally commit to paying for reserved capacity whether or not they use the full contracted amount.
That structure provides Enbridge with greater cash flow visibility and reduces its direct exposure to short-term commodity price and volume fluctuations.
The projects expand Enbridge’s role in supplying natural gas to LNG export facilities along the U.S. Gulf Coast.
The company is also commissioning the Blackcomb Pipeline and advancing additional transportation capacity connected with growing Permian Basin production.
In the U.S. Northeast, Enbridge completed an open season for Project Beacon, a proposed expansion of its Algonquin Gas Transmission system.
Customer interest was significantly higher than management initially expected, and Enbridge is evaluating the potential expansion’s commercial structure.
Enbridge also sanctioned and began constructing the US$1 billion Line 5 Relocation project in Wisconsin.
The project involves rerouting approximately 41 miles of the existing pipeline. Enbridge has obtained the principal state and federal permits, including the U.S. Army Corps of Engineers’ Clean Water Act permit.
The relocated section is expected to enter service in early 2027, after which eligible capital will be added to the Mainline rate base.
The company’s Liquids Pipelines infrastructure is positioned to benefit from rising Western Canadian oil production.
Enbridge’s Regional Oil Sands system serves approximately half of Alberta’s oil sands production, while Southern Lights and Norlite provide diluent transportation that can expand alongside output.
Management said Mainline Optimization Phase 2 has evolved into a broader group of expansion opportunities as Canadian policy and production conditions improve.
Enbridge is also advancing large projects already included in its backlog.
Construction began during the quarter on the C$4 billion Sunrise Expansion of the company’s British Columbia Pipeline system.
Tennessee Ridgeline, Aspen Point, and the second phase of Sequoia Solar are expected to begin service later in 2026.
The Renewable Power segment is advancing more than 1.5 gigawatts of additional projects that qualify for safe-harbor treatment.
Over the previous 12 months, Enbridge sanctioned more than 1.4 gigawatts of solar and onshore wind capacity and 1.6 gigawatt-hours of battery storage.
Those projects are supported by long-term power purchase agreements with Meta.
The expanding backlog accompanied modest growth in Enbridge’s underlying quarterly earnings.
Adjusted EBITDA increased to C$4.78 billion from C$4.64 billion.
Gas Transmission adjusted EBITDA rose to C$1.42 billion from C$1.38 billion, while Gas Distribution and Storage increased to C$878 million from C$840 million.
Liquids Pipelines adjusted EBITDA remained nearly flat at C$2.34 billion.
Higher Mainline and Line 9 volumes and system optimization benefits were partly offset by weaker contributions from other pipeline assets.
Adjusted earnings declined to C$1.38 billion from C$1.42 billion.
Adjusted earnings per share fell to C$0.63 from C$0.65 because higher depreciation on assets placed into service and additional interest expense more than offset the increase in adjusted EBITDA.
Distributable cash flow increased slightly to C$2.95 billion from C$2.90 billion.
Cash provided by operating activities increased 27% to C$4.11 billion from C$3.24 billion, with the larger increase reflecting working-capital movements and other cash flow timing effects.
Reported earnings declined to approximately C$1.40 billion from C$2.18 billion.
The decrease primarily reflected unrealized changes in the value of derivative instruments, a pre-issuance hedge loss associated with exchanging medium-term notes, and a non-cash crude-oil inventory adjustment.
Enbridge’s rolling 12-month debt-to-EBITDA ratio was 5.1 times at the end of June.
The company said the ratio was temporarily affected by translating period-end debt at a Canadian-dollar-to-U.S.-dollar exchange rate of 1.42 while translating trailing EBITDA at an average rate of 1.38.
Enbridge reaffirmed its 2026 adjusted EBITDA guidance of between C$20.2 billion and C$20.8 billion.
The company also maintained distributable cash flow guidance of between C$5.70 and C$6.10 per share and its post-2026 target for approximately 5% average annual growth in adjusted EBITDA, distributable cash flow per share, and earnings per share.
The C$41 billion backlog provides visibility into that growth outlook.
Fully contracted LNG pipelines, regulated utility investments, liquids transportation projects, and long-term renewable power agreements allow Enbridge to expand while limiting its direct exposure to changes in commodity prices.
KEY QUOTES:
“We added $1 billion to our now $41 billion growth project backlog.”
“Enbridge is well positioned to capitalize on the best macro environment for growth in the last 10 years.”
Greg Ebel, President And Chief Executive Officer Of Enbridge
