) - the parent company of
Enbridge Energy Partners L.P.
) - announced that the 512-mile Seaway Pipeline system loop is
mechanically complete. The finished pipeline system from Cushing,
OK connects the Jones Creek storage and terminal facility near
Freeport, TX. The new 30-inch pipeline is expected to expand the
capacity of the Seaway system to 850,000 barrels of oil per day
The construction of another 100-mile, 30-inch pipeline from ECHO to
Beaumont/Port Arthur, TX, is also expected to be completed this
month. Commissioning of both the completed Seaway Loop (Twin), as
well as the new pipeline from ECHO to Beaumont/Port Arthur, is
expected in the third quarter of 2014.
In addition to the pipeline that transports crude oil from Cushing
to the Gulf Coast, the Seaway system comprises a terminal and
distribution network originating in Texas City that serves
refineries locally and in the Houston area. The Seaway system also
includes dock facilities at Freeport and Texas City.
Seaway pipeline is one of the pipeline projects that is aimed at
clearing a bottleneck at the pipeline hub. This pipeline system
also includes a terminal and distribution network that originates
from Texas City and serves local refineries and in the Houston
region. It also includes dock facilities at Freeport and Texas
City. Seaway Crude Pipeline Company LLC is equally owned by the
Enterprise Products Partners L.P.
) and Enbridge.
Canada-based Enbridge Inc. is a leading energy transportation and
distribution company. As a transporter of energy, Enbridge operates
the world's longest crude oil and liquids pipeline system in Canada
and the United States. The company is also involved in natural gas
transmission and midstream businesses in other countries. As a
distributor of energy, Enbridge owns and operates Canada's largest
natural gas distribution company. It provides distribution services
in Ontario, Quebec, New Brunswick and New York State.
We remain apprehensive about the company's midstream natural gas
business, which is sensitive to changes in natural gas
supply-demand fundamentals and commodity cycles associated with gas
Enbridge currently carries a short-term Zacks Rank #2 (Buy).
Another stock worth considering in the same sector is Zacks Rank #1
Pembina Pipeline Corp.
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