Enbridge (EN3) Risk Analysis
Risk Overview Q2, 2026
Source: the company's latest filing for the period ended Jun 30, 2026, filed Jul 31, 2026
Risk Change Over Time
- Capital Markets - Risk 1The effects of US, Canadian and other governments' policies on tariffs and trade relations are uncertain and could adversely impact our business, operations or financial results.
Tariffs and other trade measures announced, imposed, modified, suspended, terminated or replaced by the US, together with potential, announced or implemented retaliatory tariffs by other governments on imports from the US, and other potential measures, including duties, fees, economic sanctions or other trade measures, as well as the potential impacts of these tariffs and trade measures, present significant risks to our business operations and financial results. Such measures may include, among other tariffs or surcharges on certain goods that do not qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA), global tariffs on steel, aluminum and other metals, and other periodic retaliatory tariffs or trade measures affecting Canada. Several of the US tariff announcements have been followed by announcements of limited exemptions, temporary pauses on implementation dates and litigation. In response to the US tariff announcements, certain governments have threatened or announced retaliatory measures against the US and/or are in the process of negotiating with the US on tariff agreements. In addition, while in February 2026, the US Supreme Court ruled that the US President did not have authority to impose certain tariffs and trade measures on an "emergency" basis, the US administration is pursuing other means of imposing tariffs. These announcements and activities have led to significant uncertainty and market volatility. If maintained, such trade measures, the nature, extent and timing of which are uncertain, and the potential for escalation of trade disputes, including retaliatory measures, could lead to, among other things, worsening of macroeconomic conditions, inflationary pressures, increased construction costs, costs to maintain our assets and other costs and expenses, as well as to potential reductions in demand for US and/or Canadian energy. The measures also introduce uncertainty in North American energy and capital markets and have the potential to disrupt supply chains and access to capital markets and jeopardize our competitiveness. On July 1, 2026, the formal review period for USMCA began with the US Government announcing its intent not to renew the agreement without changes. As a result, the USMCA is not renewed; however, the agreement remains in force pending resolution of these issues or until the agreement's termination in 2036. Results of these negotiations could further impact the energy market and our business. Any of the foregoing could significantly adversely impact our business, operations or financial results.
Risk Highlights Q2, 2026
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 33
- Manufacturing - Risk 1Our secured projects and maintenance programs are subject to various factors, which may affect our ability to drive long-term growth.
Our project execution continues to face challenges, including intense scrutiny of regulatory and environmental permit applications, politicized permitting processes, public opposition such as protests, efforts to repeal permits, and resistance to land access, which have increased construction complexity and, in certain cases, delayed project completion. Joint ventures further increase complexity and reduce our ability to control project execution. Continued challenges with global supply chains have created unpredictability in material costs and availability. Labor shortages and inflationary pressures have increased the costs of engineering and construction services. Recent and proposed legislation in Canada and the US aimed at increasing supply chain integrity, including with respect to forced labor and child labor, together with measures by us, our suppliers and governments, may impact business activities, global and North American supply chains, and our procurement processes, potentially impacting the availability or cost of goods and materials that we purchase. There is a risk that our supply chain may actually use or be alleged to have used forced labor or child labor, which could impact our reputation. Other factors that can, and have in the past, delayed project completion and increased project costs include contractor or supplier non-performance, tariffs, extreme weather events and geological factors beyond our control.
- Manufacturing - Risk 2There are utilization risks with respect to our assets, across all business segments.
Liquids Pipelines: We are partially exposed to throughput risk on the Canadian Mainline, and are exposed to throughput risk under certain tolling agreements for other assets, such as the Lakehead System. Lower transported volumes can directly reduce our revenues and earnings. Utilization of our assets may be affected by factors such as changing market fundamentals, capacity bottlenecks, regulatory restrictions, maintenance, operational incidents, and increased competition. Commodity prices, price differentials, weather, gasoline prices and consumption, tariffs, alternative and new energy sources and technologies, and global supply disruptions and dynamics, including those that may arise due to geopolitical conflicts, can also influence the supply of, demand for, and price of crude oil and other liquid hydrocarbons transported on our pipelines. Gas Transmission: Shifts in regional and global production and consumption continue to affect gas supply and demand dynamics, which can lead to fluctuations in commodity prices and price differentials and potential underutilization of some parts our system. Other factors affecting system utilization include operational incidents, regulatory restrictions, system maintenance, and increased competition. Gas Distribution and Storage: Customers of our gas distribution franchises are billed on both a fixed charge and volumetric basis, and our ability to collect the total revenue requirement (the cost of providing service, including a reasonable return to the utility) in certain jurisdictions, depends on achieving the forecast distribution measures set during the rate-making process. The probability of realizing such measures varies by jurisdiction but is generally contingent upon four key forecast variables: weather, economic conditions, pricing of competitive energy sources, and customer growth. Weather is a significant driver of delivery volumes, as many customers use natural gas for heating. Our ability to add new customers could be impacted by housing market conditions, such as interest rates and affordability on new home construction, and energy transition trends. Large commercial and industrial volumes are more sensitive to economic conditions and fuel-switching options. Even where total forecast distribution volumes are met, we may not achieve expected ROE due to other forecast variables, such as fluctuations in the mix between higher- and lower-margin customers. All of our gas distribution businesses remain at risk for actual versus forecast of large volume contract commercial and industrial volumes. Renewable Power Generation: Earnings from our Renewable Power Generation assets are highly dependent on weather and atmospheric conditions, as well as continued operational availability of these energy producing assets. While the expected energy yields for our projects are predicted using long-term historical data, wind and solar resources are subject to natural variation from year-to-year and from season-to-season. Any prolonged reduction in wind or solar resources at any facilities could lead to decreased earnings and cash flows. Additionally, inefficiencies or interruptions of facilities due to operational disturbances or outages resulting from weather conditions or other factors, could also impact earnings.
- Manufacturing - Risk 3Our operations involve safety risks to the public and to our workers and contractors.
Enbridge's assets span a broad geographic area and often operate near populated areas. We have experienced major incidents involving these assets that have resulted in, and may again result in, injury or loss of life to members of the public. In addition, given the hazards inherent in our operations, our workers and contractors also face personal safety risks. Despite the precautions we take, such safety incidents have occurred in the past and may occur in the future. Such events could lead to reputational damage, legal claims, material repair costs, and higher operating or insurance costs.
- Manufacturing - Risk 4A service interruption could have a significant impact on our operations, and negatively impact financial results, stakeholder relationships and our reputation.
A service interruption could significantly and negatively affect our operations, financial results, stakeholder relationships, the safety of our end-use customers, and our reputation. Interruptions to our crude oil and natural gas transportation services can disrupt customer operations and earnings, as they rely on us to move their products to market and fulfill contractual arrangements. Such disruptions have previously led to claims against us and they may do so again. We have experienced, and may again experience, service interruptions, restrictions or other operational constraints, including those related to operational incidents described in the preceding risk factor.
- Manufacturing - Risk 5Operation of complex energy infrastructure involves many hazards and risks that may adversely affect our business, financial results, the environment, relationships with stakeholders, the safety of the public and our workers, and our reputation.
These operational risks include accidents, third-party damage to assets or systems, equipment failure, process breakdowns, human error, major power disruptions, curtailment or limitations of commodity supply, operational incidents, failure of information technology or operational technology systems, security incidents (cyber or physical), lower than expected levels of operating capacity or efficiency, among others. Such events could be catastrophic in nature. Operational risk is also intensified by exposure to severe weather conditions and natural disasters, including those related to climate change. Events such as heavy snowfall, extreme precipitation, floods, landslides, wildfires, hurricanes, cyclones, tornadoes, tropical storms, storm surges, ice storms, and extreme temperatures, as well as chronic physical risks like long-term changes in precipitation patterns, or sustained higher temperatures, can affect the safety and reliability of our operations. We have and expect to continue to experience climate-related physical risks, potentially with increasing frequency and severity, and we cannot guarantee that we will not experience catastrophic or other events in the future. Our assets and operations are vulnerable to damage or disruption from these events, which could result in reduced revenue from business interruptions or reduced capacity and may also increase costs for repairs, remediation or adaptation measures. Such events have led to, and could again lead to, ruptures or product releases from our pipelines or facilities, causing property and environmental damage, personal injury or loss of life. Such an incident has in the past, and could again in the future, result in substantial losses that insurance may not fully cover, negatively impacting earnings. Such incidents could also have lasting reputational impacts and impair stakeholder relationships. For pipeline and storage assets located near populated areas, the potential damage could be even greater. We expect to continue to incur significant costs to prepare for and respond to operational risks. Additionally, we have faced, and could face again, litigation and significant fines and penalties from regulators in connection with such events.
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.