Natural Gas News – May 10, 2018

Natural Gas News – May 10, 2018

Enbridge Hits Debt Target with $2.5 Billion Pipeline, Renewables Sale

Reuters reported: Enbridge Inc. (ENB.TO) will sell a U.S. gas pipelines business and part of its renewable energy portfolio for a combined $2.5 billion, the Canadian pipeline operator said on Wednesday, achieving the first step in its debt reduction plan. The Calgary-based company is continuing to shop its Canadian midstream assets and has received initial bids valuing the portfolio as high as C$4.5 billion ($3.5 billion), people familiar with the situation told Reuters. Enbridge Chief Executive Officer Al Monaco told reporters on Wednesday that the company has not received any formal bids for the Canadian midstream assets and declined to comment on indications of interest. Enbridge has been under pressure to sell non-core assets since its $28 billion takeover of U.S.- based Spectra Energy last year. Its long-term debt pile of $60.87 billion as of Dec. 31 has also caused alarm at credit rating agencies. The company said in November it expected to raise upwards of C$3 billion from divestments in 2018, the first sales from a pool of non-core assets worth C$10 billion. For more on this story visit reuters.com or click https://reut.rs/2I3bdP5

European Natural Gas Import Demand, Transit Constraints, Could See Russia ‘Shortage’: OIES

Platts reported: An increase in Europe’s natural gas import requirements in the next two years could test the transit network for Russian gas, potentially even leading to Gazprom being unable to meet European demand and a spike in gas prices during high-consumption periods, analysts at the Oxford Institute for Energy Studies (OIES) have warned. The colderthan- average weather in Europe in February and March saw increased European demand for Russian gas, with the monthly utilization rate rising to 86% in March, the OIES said in a paper published Wednesday. “The system is approaching full utilization during winter months,” the OIES said. For more on this story visit platts.com or click https://bit.ly/2ryyIp8

 

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