Enbridge Focuses on Pipelines - Analyst Blog

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Canadian Pipeline operator, Enbridge Inc. ( ENB ) is working on its plan of making the Southern Access Extension pipeline venture profitable. With this view, the company is proactively contracting shippers for making volume commitments for either ten or fifteen year terms in the pipeline through multiple Open Seasons.

After a successful response from shippers in its first Open Season held between the period Dec 12, 2012, to Jan 18, 2013, the company has announced another. The second open season will start from Jun 5 and will continue till Jul 19, 2013.

The Southern Access Extension pipeline is a proposed 24-inch diameter pipeline that would transport crude oil from Flanagan to Patoka in Illinois. The 165 mile pipeline - with initial capacity of 300,000 barrels per day (bpd) - would receive crude oil from Enbridge Energy Partners, L.P. ( EEP ).

The pipeline project, under the purview of the company's U.S. subsidiary Enbridge Pipelines in a build-own-operate (BOO) fashion, is expected to be operational during the second quarter of 2015.

The pipeline operator's move comes in the right time as there are plans to hold another Open Season for shippers for transporting the aforementioned crude at Patoka to the Eastern Gulf Coast refinery market. This would be under the purview of Energy Transfer Equity, L.P. ( ETE ) and Energy Transfer Partners, L.P. ( ETP ).

Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. The company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State.

Enbridge Inc. currently has a Zacks Rank #3 (Hold).




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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 , ETE , ETP

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