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Enbridge (ENB) Targets French Offshore Wind, Shuns U.S. Projects
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Enbridge Inc. (ENB - Free Report) , the Canadian pipeline giant, is eyeing significant offshore wind investments in France while opting out of pursuing projects in the United States, per a Reuters report. Matthew Akman, Enbridge's president of power, highlighted the escalating costs and supply-chain issues that have contributed to the collapse of offshore projects in the country, posing a threat to its emission reduction target.
Enbridge's interest in France is attributed to the presence of a robust partner, state-owned EDFGroup, and the favorable conditions offered by wind properties. These properties come with 20-year agreements to sell power to the government at prices that escalate with inflation,providing a favorable investment environment.
The company is set to actively participate in the upcoming three French offshore wind tenders scheduled for this year. Akman expressed optimism about making further investments, citing the French government's ambitious plans to expand offshore wind initiatives and meet corporate emission targets. However, Enbridge has ruled out investing in U.S. offshore wind projects, citing acute supply-chain constraints and power transmission bottlenecks. Akman acknowledges the potential of offshore wind contributing significantly to the U.S. northeast energy mix but predicts a longer timeline for its realization.
While steering away from offshore wind ventures in the United States, Enbridge remains committed to onshore wind and solar projects in the country. The focus is on selling energy to the oil and gas industry, with the first phase of the Fox Squirrel solar project in Ohio already in commercial operation, in collaboration with EDF.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
Oceaneering International is a leading provider of integrated technology solutions, active at all phases of the offshore oilfield lifecycle. Its strong relationship with high-quality customers provides revenue visibility and business certainty. OII is well-positioned to supply equipment for deep-water projects.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
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Enbridge (ENB) Targets French Offshore Wind, Shuns U.S. Projects
Enbridge Inc. (ENB - Free Report) , the Canadian pipeline giant, is eyeing significant offshore wind investments in France while opting out of pursuing projects in the United States, per a Reuters report. Matthew Akman, Enbridge's president of power, highlighted the escalating costs and supply-chain issues that have contributed to the collapse of offshore projects in the country, posing a threat to its emission reduction target.
Enbridge's interest in France is attributed to the presence of a robust partner, state-owned EDFGroup, and the favorable conditions offered by wind properties. These properties come with 20-year agreements to sell power to the government at prices that escalate with inflation,providing a favorable investment environment.
The company is set to actively participate in the upcoming three French offshore wind tenders scheduled for this year. Akman expressed optimism about making further investments, citing the French government's ambitious plans to expand offshore wind initiatives and meet corporate emission targets. However, Enbridge has ruled out investing in U.S. offshore wind projects, citing acute supply-chain constraints and power transmission bottlenecks. Akman acknowledges the potential of offshore wind contributing significantly to the U.S. northeast energy mix but predicts a longer timeline for its realization.
While steering away from offshore wind ventures in the United States, Enbridge remains committed to onshore wind and solar projects in the country. The focus is on selling energy to the oil and gas industry, with the first phase of the Fox Squirrel solar project in Ohio already in commercial operation, in collaboration with EDF.
Zacks Rank & Other Key Picks
Currently, Enbridge carries a Zack Rank #2 (Buy).
Some other top-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Oceaneering International, Inc. (OII - Free Report) and Vaalco Energy, Inc. (EGY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
Oceaneering International is a leading provider of integrated technology solutions, active at all phases of the offshore oilfield lifecycle. Its strong relationship with high-quality customers provides revenue visibility and business certainty. OII is well-positioned to supply equipment for deep-water projects.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.