Enbridge Inc. is accelerating its energy infrastructure investments with the approval of projects totaling approximately $2 billion, positioning the company at the heart of North America’s energy transformation. The company recorded record financial results in the second quarter of 2025, with adjusted EBITDA of C$4.6 billion, up 7% from the previous year. This robust performance is accompanied by a series of strategic investments aimed at capitalizing on growing energy demand from data centers, the industrial sector, and liquefied natural gas export markets.
President and CEO Greg Ebel emphasized that Enbridge’s diversified approach to energy investment continues to create value for shareholders. The company is capitalizing on growing power demand and strong natural gas fundamentals, with a backlog now exceeding $30 billion across its four business segments. This diversification allows Enbridge to seize multiple opportunities while maintaining predictable returns for its investors.
Clear Fork Solar marks strategic entry into data center power supply
The Clear Fork Solar project represents the largest investment in this new wave, with an estimated cost of US$900 million. This 600-megawatt solar facility, located near San Antonio, Texas, is fully secured by a long-term power purchase agreement with Meta Platforms Inc. Commissioning is scheduled for 2027, directly addressing the growing energy needs of data centers that power the digital economy.
The significance of this project extends beyond simply adding renewable capacity. It demonstrates Enbridge’s ability to meet the energy requirements of technology giants seeking reliable and sustainable energy sources for their expanding operations. The company confirmed that recent changes to renewable energy tax credits enacted in the One Big Beautiful Bill Act should not affect Clear Fork or its other late-stage development projects.
Massive gas infrastructure expansion to support industrial growth
Enbridge’s gas expansion includes several interconnected projects that strengthen its dominant position in natural gas transportation and storage. The Line 31 expansion of Texas Eastern Transmission, at a cost of US$100 million, will add up to 160 million cubic feet per day of capacity. This new infrastructure includes a lateral connection in Mississippi to serve growing industrial and power demand in the region under long-term firm contractual arrangements.
The Aitken Creek expansion project in British Columbia represents a C$300 million investment that will add 40 billion cubic feet of storage capacity. This facility is the province’s only underground natural gas storage facility, and its expansion includes additional on-site wells, compression, and facility modernization. The expansion is substantially de-risked through 10-year storage contracts, with capacity dedicated to ensuring availability for growing LNG demand on the west coast.
Portfolio optimization and strategic partnerships
Enbridge closed the acquisition of a 10% interest in the Matterhorn Express Pipeline (MXP), a leading natural gas infrastructure asset providing 2.5 billion cubic feet per day of Permian egress to the Katy area on the U.S. Gulf Coast. In parallel, the company announced the upsizing of the Traverse Pipeline from 1.75 to 2.5 billion cubic feet per day, driven by strong market demand and customer feedback.
The Traverse Pipeline will provide bidirectional service between Agua Dulce and the Katy area in Texas, enhancing egress options across the U.S. Gulf Coast. This expansion reflects Enbridge’s strategy of optimizing existing assets while meeting evolving market needs. The company has also advanced an expansion on the Southeast Supply Header Pipeline and secured a binding commitment from a southern utility to support growing industrial and data center demand in the U.S. Southeast.
Solid operational performance despite market volatility
Second quarter results demonstrate the resilience of Enbridge’s diversified business model. The Mainline system transported an average of 3.0 million barrels per day, with the system apportioned for six of eight months this year, including July and August. The company concluded an oversubscribed open season for the Flanagan South Pipeline, bringing it closer to approval of Mainline Optimization Phase 1 later this year.
The gas distribution segment also showed strong performance, with adjusted EBITDA of C$840 million in the second quarter, up C$273 million from the prior year. This increase reflects full contributions from U.S. natural gas utility acquisitions, higher distribution margin from rate increases and customer base growth at Enbridge Gas Ontario, as well as colder weather conditions.
Indigenous partnerships and sustainable development
The closing of the Westcoast Pipeline investment transaction with Stonlasec8 Indigenous Alliance Limited Partnership marks a significant milestone in advancing Indigenous participation in Canadian energy infrastructure. This C$700 million transaction for a 12.5% interest in the Westcoast natural gas pipeline system includes a C$400 million loan guarantee from the Canada Development Investment Corporation.
The partnership with 38 First Nations in British Columbia provides sustained economic benefits to Indigenous communities while continuing Enbridge’s track record of recycling capital at attractive valuations. This collaborative approach sets a precedent for Indigenous inclusion in major energy infrastructure projects.
Financial outlook and disciplined capital allocation
Enbridge maintains its 2025 financial guidance, with adjusted EBITDA expected between C$19.4 and C$20.0 billion and distributable cash flow per share between $5.50 and $5.90. The company’s debt-to-EBITDA ratio improved to 4.7x at quarter end, below the midpoint of the company’s target range, providing significant financial flexibility.
The Woodfibre LNG commercial update reflects Enbridge’s prudent approach to risk management. Enbridge’s share of capital costs has been updated to US$2.9 billion, with the preferred return expected to be set closer to construction completion, de-risking the return on capital. The project is underpinned by 15-year offtake agreements with BP Gas Marketing Limited for 100% of capacity, ensuring stable long-term cash flows.
Enbridge’s annual investment capacity of $9-10 billion, combined with its strong balance sheet, provides the flexibility to execute on its $32 billion backlog and pursue the longer-term $50 billion opportunity set presented earlier this year. This capital allocation discipline, coupled with visible growth plans, supports expected annual dividend increases and positions Enbridge as a first-choice investment opportunity in the North American energy sector.
