Strategic Plan: 2022 Summary
Each year, we review our strategy to ensure that Enbridge is on the right path to fulfill our purpose, grow our business, and create value for customers, shareholders and employees.
In doing this, we look at current energy fundamentals and our business environment, what’s important to our stakeholders, and how our competitors are positioned. We also regularly analyze our assets and strategy under various scenarios to ensure resiliency of our business. Finally, we look for value enhancement and maximization opportunities. This comprehensive approach guides our decision making.
Last year, we outlined a set of strategic actions to support our energy transition strategy, balancing growth in our conventional businesses with the transition to lower-carbon platforms.
Through this analysis, we confirmed that our strategy is sound, and our strategic priorities for 2022 stay the same. We may adjust the emphasis and pace of our efforts to stay in step with trends in energy fundamentals.
The fact remains that in almost all future outlooks, energy demand will grow and—regardless of whether it’s oil, gas, renewables, hydrogen, etc.—energy infrastructure will be needed to provide it.
Our four core businesses—Liquids Pipelines (LP), Gas Transmission and Midstream (GTM), Gas Distribution and Storage (GDS) and Renewable Power—remain competitively positioned for the long term.
In 2022, we have confidence in our balanced transition strategy and intend to be deliberate in how we execute it. Overall, we’ll continue to grow our company making new investments in all our businesses, while also enhancing the value of our existing assets by finding ways to increase revenue and improve efficiency. Over the past few years, we have executed a sizeable capital program. We still have $9 billion of secured projects to put into service with the potential for many more over the next few years. Execution of these capital projects is key to our growth. We’ll also grow our core businesses organically by applying our capabilities, working closely with our customers, leveraging our existing footprint to extend and expand our network, and investing in low-carbon platforms. Examples include:
- Enhancing our LP system to provide additional egress out of Western Canada and market access for crude oil
- Supporting increasing demand for gas in our core markets (e.g. U.S. East Coast) through the extension and expansion of our GTM network
- Increasing our export capabilities by further building out our U.S. Gulf Coast liquids export platform and expanding our LNG export connections in BC and the U.S. Gulf Coast.
- Growing our customer connections and expanding storage and transmission in GDS
- Developing further offshore wind projects in Europe and expanding our onshore footprint in North America (self-power and front of the meter)
- Investing in new energy opportunities like CCUS, RNG and hydrogen, supporting our customers and broader industry decarbonization objectives, across all our businesses
We’ll also continue to adapt to and invest in the energy transition. We’ll aim to be a differentiated service provider of lower-carbon options and solutions for our customers by modernizing and decarbonizing our system, advancing low-carbon platforms, including renewables, hydrogen, CCUS and RNG, and building our internal capabilities to support our strategy.
With Line 3 Replacement in service, we now have additional financial flexibility and capacity to look at “tuck-in” acquisitions opportunistically. As we proved with the Ingleside Energy Center purchase in 2021, acquisitions can help us expand both our traditional and low-carbon businesses while enhancing and extending our growth rate.
However, at all times, we will maintain our financial strength and flexibility to ensure we have consistency in our cashflow and the ability to employ different capital allocation options, such as further investment or share buy backs.
By delivering on this strategy, we expect to grow distributable cash flow per share at a 5 to 7% CAGR through to 2024, based on our 2021 results.