Canadian pipeline operator,
) subsidiary Enbridge Pipelines (Athabasca) Inc. shut down and
isolated its Line 37 pipeline north of Cheecham, Alberta, after
the leak detection system detected a potential release from the
line. Though the spillage is now under control, it is most likely
to attract the attention of safety regulators.
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The 12-inch, 17-kilometers long Line 37 pipeline was constructed
in 2006. It connects facilities in the Long Lake area to Cheecham
and is part of Enbridge's Athabasca system.
Enbridge's initial estimates place the volume of the light
synthetic oil release at approximately 750 barrels. As the news
of oil release was received, Enbridge temporarily closed the two
larger nearby pipelines Athabasca and Waupisoo.
The Athabasca Pipeline transports crude oil from various oil
sands projects to the mainline hub at Hardisty, Alberta. The
Waupisoo Pipeline system carries Alberta oil sands crude from
Enbridge Athabasca's Cheecham Terminal, south to the Enbridge
Pipelines Inc. Edmonton Terminal.
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 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. It provides distribution services in
Ontario, Quebec, New Brunswick and New York State.
However, 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 Inc. currently has a Zacks Rank #3 (Hold). Other stocks
from the industry that are presently performing well include
Sanchez Energy Corporation
Hornbeck Offshore Services, Inc.
). All these companies carry a Zacks Rank #1 (Strong Buy).