Pipeline giant Enbridge cuts 650 jobs

Gary Park

for Petroleum News

Citing persistent economic headwinds, Canadian pipeline giant Enbridge says it will cut 60 jobs in February less than five months after it became North America's largest natural gas utility by acquiring three U.S. utilities for US$9.4 billion.

Enbridge said in a statement that "cost reduction measures are necessary to maintain our financial strength, be more cost competitive and enable us to weather near-term challenges. While we delivered a strong financial performance in 2023, cost reduction measures are necessary."

Enbridge said its acquisition of the three U.S gas utilities is expected to close this year. It will split the company's earnings before interest, taxes, depreciation and amortization 50-50 between its U.S. and Canadian operations by beefing up its American presence that grew rapidly when it bought Spectra Energy in 2016.

Enbridge also plans to significantly diversify its geographical footprint in Ohio, Utah, Wyoming, Idaho and North Carolina, jurisdictions which came with major benefits from the U.S. acquisitions.

--GARY PARK