So I think we’ve structured this well by getting three quarters of it off the table and setting our stuff up well with multiple avenues to achieve the last 25%.
Theresa Chen: Got it. Thank you. And turning to the liquids business, Related to the Flanagan South open season, really interesting to see the upsizing, given that I’m sure your shippers like everyone else is evaluating the TMX sometime next year, but not only if there are enough for the previous open season, but it’s been upsized now. Can you talk about what’s driving that demand to bring barrels all the way to the Gulf Coast in your conversations with the shippers as this open season progresses?
Colin Gruending: Theresa, it’s Colin, thanks for the question. We’re less surprised. I think the fundamental in play here is a demand pull for Canadian heavy to the PADD 2 and PADD 3 for many, many years. It’s been growing and growing, growing. So we see some demand pull. I think you also see some supply push. It basically represents contracted egress in a sense, that you have variability through the mainline to get on to FSP. And as you see, the pricing basis is very wide. Now, and I think it’s expected to be wide through the decade as egress will become constrained again. So I think it’s I think it’s less surprising maybe than you’re observing. But of course, you’re building EHA to determines of that in Houston. And it’s a very competitive path or I think it bottom line underscores the resilience of the Mainline system.
Theresa Chen: Makes sense. Thank you.
Greg Ebel: Thank you.
Operator: The next question is from Robert Catellier with CIBC Capital Markets. Your line is open.
Robert Catellier: Hi, good morning. I wondered if you could start with giving us a description of how you think the recent Supreme Court depending on the impact of Assessment Act that will impact your appetite for asset development in Canada?
Greg Ebel: Yes. Robert, I think it’s a little bit early. Obviously, you can read a lot of tea leaves in this. The federal government says they are going to make some adjustments and fix that. I’m not sure exactly what that means. And so we will have to consider that over the coming months and year. So that’s one. I think you also have to think about it from the clean electricity standards. And none of this really immediately solves just the overall getting certificates to move forward with major pipelines from my perspective. So I’m not – I think it’s status quo at this point in time. I don’t see it impacting any of the projects that we have in a big way in Canada. As you know, most of those are inter – intra provincial.
So whether it’s things going on in Ontario or major projects in British Columbia, they are within the province. And so I don’t see a major issue from that perspective. But I just think it’s early days, wherever we will have to see, it’s not easy to build anything anywhere. And that’s why we kind of like having that portfolio of businesses where we can pick and choose with the best returns and the most accretive projects across multiple jurisdictions. But yes, I think time is going tell I would say a better answer for you, Rob, and I just don’t think it’s clear yet where they are going to go.
Robert Catellier: Right. Okay. And then a similar question in the U.S. As you look at U.S. offshore wind projects having some difficulty with supply chain and everything else. How does this play into your gas transmission assets, including the Algonquin open season? And what do you think is possible with respect to that open season in terms of the scale of what you might accomplish?
Greg Ebel: Yes. I’ll let Cynthia answer. But I guess just from a macro perspective, I think we’ve been extremely careful at Enbridge of considering pace. And I think the pace of the transition, I think it served us very by sticking with gas assets with liquid assets with keeping our renewables business going. So I really do think we – you’ve heard us pitch it for a long time in all of the above strategy, and it’s going to continue. But if anything, the last 24 months, whether it’s activities in Europe, the war between Russia and the Ukraine or the war in the Middle East, the instability that’s out there has really underline the need for North America infrastructure and North America infrastructure that looks at exports at to help in us stable regions. And probably one of the worst served areas is the Northeast. So Cynthia, do you want to speak to that?
Cynthia Hansen: Yes. Thanks, Greg. We have been participating in many technical conferences with FERC and others to just address those issues. And these are near-term reliability concerns. So yes, there’ll be more in the future potentially for those concerns if you see any wind development scale there. But this is really to this open season is to address near-term issues as well as some peaking issues that are starting to create these problems and dynamics in the Northeast. So we have two different actions that we’re speaking to the – our customers up in the Northeast as for this project maple sound receive another sample. So what we see for that opportunity, one would be up to 500 dekatherms per day, the other received is 250 dekatherms per day.
So there has been a lot of interest. We are having great conversations. That open season closed on November 17. So more to come as we work with our customers to find what the best received client was that build-out is, but we will continue to do that. And service dates for these projects is targeted to be in 2029. So lots of work to go, and I’m sure we will continue to have more and more discussions as we see more of that energy transition in the U.S. Northeast.
Greg Ebel: Hey, Robert. And the only other thing I’d add is kind of related. I really don’t see North American offshore as something that’s attractive to us, it would not fit our risk parameters from a return perspective, a risk and getting it very different than what we’ve seen in Europe with really long-term contracts with things that actually get done on time. I think people often forget there is only one operating offshore wind facility in North America, I think, still today and it took 1.5 decades to get done. Maybe there is 2, but they are small. So that – just to be clear, that’s not something that we find attractive.
Robert Catellier: No, I understand that last point. I was just saying the dynamics offshore or offshore one are actually playing into your hands with your gas assets. But thanks for those answers. Thank you.
Greg Ebel: Thank you.
Operator: The next question is from Jeremy Tonet with JPMorgan. Your line is open.
Jeremy Tonet: Hi, good morning.
Greg Ebel: Hi, good morning.
Jeremy Tonet: Just wanted to come back to the compensation of capital allocation if it could, especially in light of rates moving up sharply here. I’m just wondering how that has impacted your thoughts on the different components of capital allocation. Particularly as it relates to acquisitions on renewables, I think there is a concern in the marketplace that the returns there are a bit more – or a bit lower. And so just wondering how you see that factoring in times it seems like in midstream, there is a preference for return of capital here. So just wondering how that all kind of blends together in this new environment.
