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ENBRIDGE: NAVIGATING UNEXPECTED RELEVANCE

Strategic Assessment from June 2030

FROM: Executive Intelligence Unit DATE: June 2030 RE: The Pipeline Company That AI Accidentally Saved

EXECUTIVE SUMMARY

Enbridge's natural gas pipeline infrastructure was becoming less relevant as the world transitioned away from fossil fuels. Then AI data centers created unprecedented power demand, extending the life of natural gas infrastructure and buying the company time.

The strategic question: How does Enbridge prepare for post-2035 when even AI-driven demand for natural gas may not sustain the business?

THE CORE OPPORTUNITY AND RISK

Opportunity (2030-2035): AI data centers need power. Natural gas is the fastest power source. Enbridge's pipelines become strategically important. The company can raise dividends and maintain stable returns through this period.

Risk (2035-2040): If renewable energy and battery storage scale faster than expected, natural gas demand declines. The company needs to transition to electricity transmission and renewable energy infrastructure.

WHAT THE BOARD NEEDS TO DECIDE

  1. How aggressively should we transition away from natural gas? Do we gradually reduce natural gas operations, or do we double down on AI-driven demand?

  2. Should we acquire renewable energy assets? Transition the company from natural gas to renewable energy transmission.

  3. What is our dividend sustainability? Can we maintain 4% dividend growth if revenue declines 2-3% annually post-2035?

KEY STRATEGIC RECOMMENDATIONS

  1. Accelerate renewable energy acquisition. Acquire wind/solar assets and transmission infrastructure while valuations are attractive.

  2. Invest in electricity transmission. Build the infrastructure needed to transmit renewable power across North America.

  3. Prepare for natural gas transition. By 2035, begin wind-down of non-essential natural gas operations. Maintain core high-utilization pipelines.

  4. Maintain dividend aristocrat status. Dividend growth is your competitive advantage. Maintain it through 2035+.

THE CLOSING STRATEGIC ASSESSMENT

Enbridge has been given a reprieve by AI-driven power demand. The company should use 2030-2035 to transition to renewable energy infrastructure while maintaining stable dividends.

Clear strategic choices now position the company for long-term sustainability. Continued reliance on natural gas infrastructure beyond 2035 is a losing bet.

This strategic assessment is prepared for the Enbridge Board of Directors and C-suite executives in June 2030.