Enbridge Completes One Cushing-Freeport Seaway Pipeline - Analyst Blog


Enbridge Inc. ( ENB ) - the parent company of Enbridge Energy Partners L.P. ( EEP ) - 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 (BPD).

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 units of Enterprise Products Partners L.P. ( EPD ) 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 processing margins.

Enbridge currently carries a short-term Zacks Rank #2 (Buy). Another stock worth considering in the same sector is Zacks Rank #1 (Strong Buy) Pembina Pipeline Corp. ( PBA ).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: EEP , ENB , PBA , EPD



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