Enbridge Inc T.ENB.PR.N

How the Midstream Makes Money

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Transportation is the heart and soul of the midstream and the most common revenue generator. Pipelines collect tariffs from consumers per unit of hydrocarbon transported. These are also done through contracts that often utilize minimum volume commitments, further protecting investor income. Think of these pipeline contracts as similar to renting a storage unit or apartment. Regardless of how many things you store in the storage unit or how frequently you are home, the rent remains fixed. If there is a surge in demand and a company needs to transport more product, then additional fees can be implemented, further boosting the midstream — and the midstream investor’s — bottom line.



https://etfdb.com/energy-infrastructure-channel/how-the-midstream-generates-revenue/#:~:text=Pipelines%20collect%20tariffs%20from%20consumers,commitments%2C%20further%20protecting%20investor%20income.

Go Enbridge! ;-)