Enbridge Energy Partners LP
) and its project partner Enbridge Income Fund have completed
their Bakken crude pipeline expansion project, which forms a part
of the partnership's Bakken Expansion Program.
The partnership reversed and extended an existing pipeline,
beginning from Berthold, North Dakota, to Steelman, Saskatchewan.
Enbridge also constructed a new 16-inch pipeline from a new
terminal near Steelman to the Enbridge Pipelines Inc. mainline
terminal near Cromer, Manitoba.
The Enbridge project has added a capacity of about 145,000
barrels per day (bpd) to the booming oil region around North
Dakota, of which 25,000 bpd was brought online during the first
quarter of 2012. The project began operations as scheduled and
was within the budget.
Bakken production is likely to benefit from access to multiple
markets, upon its linking with the Enbridge mainline and its
connected pipeline systems. The project has already received firm
commitments of 100,000 bpd from anchor shippers.
Over the last five years, yield from the expansive Bakken
formation has increased considerably to more than 700,000 bpd
from 200,000 bpd. The production is expected to touch 1,200,000
bpd in the next six years.
The latest project represents the third expansion undertaken by
the partnership to meet the needs of Saskatchewan producers and
facilitate rising production from the Bakken region to access the
main U.S. markets.
The project is mainly underwritten by take-or-pay contracts and
signifies an additional source of attractive and stable
distributable cash flow for the Fund.
) operates the Canadian pipeline and holds a 23% stake in
Enbridge Energy Partners and a 20% stake in the Enbridge Income
Enbridge carries a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, there are other stocks in the
oil and gas sector -
Range Resources Corporation
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to
ENBRIDGE EGY PT (EEP): Free Stock Analysis
ENBRIDGE INC (ENB): Free Stock Analysis
ENERPLUS CORP (ERF): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
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