The OGInterview: Enbridge CEO Greg Ebel [WATCH]

Hart Energy Editorial Director Jordon Blum spoke to new Enbridge CEO Greg about the company's M&A prospects, investment in the energy transition, as well as its investments in LNG in Hart Energy LIVE's latest installment of The OGInterview. Click here to read Ebel’s full Oil and Gas Investor cover story interview.

What's next for Enbridge? Find out in this exclusive OGInterview. I'm Jordan Blum, editorial director for Hart Energy, here at Enbridge's Houston hub with the new President and CEO Greg Ebel.

Jordan Blum: Now, Enbridge is connecting Canada to the U.S. Gulf Coast like never before, but what role is Enbridge playing to help bridge the gap in the global energy crisis?

Greg Ebel: Yeah, it's a good question, Jordan. You know, we as you say, we're in 42 states and eight provinces, so well spread without North America. But today, when we've got close to nine or 10 billion people on the planet, a billion of them don’t have energy, you're question is very appropriate. So in the last 18 months, Enbridge has really taken a big move on that front. First of all, we own and operate the largest liquids export facility here on the Gulf Coast, which obviously that's an important play for the rest of the world as we go to replace, you know, Russian oil and then meet the growing demand for energy. So that's one. We're also hooked up to about half a dozen liquified natural gas projects on the Gulf Coast as well. And there is really no future without natural gas. And so many people around the world are starved for natural gas, not only because of the situation in Europe but abroad. And then, equally, in the last year or so, we've taken a position on a West Coast LNG facility called Woodfibre. So not only are we throughout North America, but increasingly beyond it.

JB: Enbridge is the largest midstream company in North North America now, but within the continent, how is Enbridge connecting those dots and expanding its footprint?

GE: Well, again, so as you point out, we already have assets in the ground. We all know how difficult it is from a permitting perspective, right? We've got to get that better both here in the United States and Canada. But in the meantime, energy demand continues to grow. And so those of us with assets already on the ground, so our liquids pipelines are gas pipelines, our gas distribution business, and increasingly our renewables — that's trying to connect the dots. And I think we're doing that well for our customers, both on the supply-push side, but also on the demand-pull side. So we'll keep the lights on regardless of where we ultimately go in this energy transition. But I think we've got a nice spot. We've continue to add new brownfield projects too, both on the gas side and some coming on the liquid side. And we continue to grow out our gas distribution business too in, in central North America around the Great Lakes. So it's a, it's a pretty target-rich environment today. But I think the real benefit is, as you say, being a large midstream player already.

JB: You mentioned renewables a little bit. Apart from the oil and gas commodities, what role is Enbridge playing in that ongoing energy transition?

GE: You know, there is a lot of discussion about renewables these days, but we've actually been in the business for over two decades. So we've invested $6 billion to $8 billion per cycled …. and we're now in five countries in which we operate renewables. So here in North America, Canada and the United States, but also in France, England, and Germany. And we'll continue to do more. And I think our customers are looking for where exactly can we play in the energy transition. I think the reality of the situation today is there's no perfect place to play. There's a lot of practical plays. We're going to continue to need the liquids business, and we love that business. We're going to continue to need natural gas. I don't see any future without natural gas, and it plays a critical role in that other component, renewables, given the intermittency. So we've got this dual-pronged strategy where we've got our conventional business, liquids, pipelines, utility, as well as the gas pipelines. And then this unconventional or new energy technology space, which is large on the renewable side at this point in time.

JB: I guess carbon capture and hydrogen kind of fit in the middle almost?

GE: So that's the next stage, right? So we have, we have some really cool projects on that front. So a really neat carbon hub that we're building in western Canada called Wabamun Hub, which is near the Edmonton (Alberta, Canada) area. And then down here on the Gulf Coast, we're looking at some really great opportunities as well with a joint venture with Oxy [Occidental Petroleum]. And then don't be surprised to see us in the hydrogen/ammonia side of things. And even renewable natural gas, let's not forget that as well, right? So moving things like food waste into renewable natural gas and blending that into the systems, both into homes, but also into our mainline systems. So there's a lot of great possibilities ahead. Again, none of them perfect, all of them practical, and that's what I think consumers are looking for today.

JB: And how will Enbridge just continue to grow from here organically? M&A? A combination of the two?

GE: Combination. We put up several billion dollars of projects into service in 2022. So right now we've got over $14 billion worth of projects that will continue to grow, largely brownfield type projects along existing right of ways, many of them involved in cost-of-service type setups. So you'll see us do that, you'll see us to continue to grow out renewables, and I wouldn't be surprised, you'll see us to do things like Ingleside, where we actually acquired an asset. One of the benefits of being a relatively large size company, we can do things that are pretty big, yet still are a tuck-in. You know, the Ingleside project was around $3 billion, but on an enterprise value of $150 billion, those opportunities are there. We’ll take advantage of those and grow our existing business organically. So I think the world's a bit of our oyster right now, and I like the way things are setting up from an energy transition, practicality approach.

JB: I'm Jordan Blum, editorial director for Heart Energy for this exclusive OGInterview. You can read more about Enbridge and what's in the pipeline for them online at hartenergy.com.