) announced that Canada's pipeline regulator, the National Energy
Board (NEB) has approved the flow reversal and expansion of its
Line 9B between Westover, Ontario and Montreal, Quebec. Combined
with the previously approved project to reverse Line 9A between
Sarnia, Ontario and Westover, this project will enable the
delivery of North American crude oil to Ontario and Quebec based
ENBRIDGE INC (ENB): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
MATRIX SERVICE (MTRX): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
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The regulatory approval would bring a new, reliable supply of
competitively priced crude oil for the local refineries. This
would cushion almost 4,000 local jobs, sustain the petrochemical
industry and strengthen the economy.
The reversal of Line 9B, a 639-kilometre section of Line 9 from
Westover to Montreal, represents the second and final phase of
Enbridge's Eastern Canadian Refinery Access Initiative. Earlier,
the NEB had approved the reversal of Line 9A, a 246 km section
between Sarnia and Westover on Jul 27, 2012. Enbridge completed
the reversal in Aug 2013 and Line 9A is flowing in a west to east
direction, supplying to Ontario's Nanticoke refinery.
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 #3 (Hold).
Some better-ranked stocks in the same sector include
Helmerich & Payne, Inc.
Matrix Service Co.
Patterson-UTI Energy Inc.
). All these stocks hold a Zacks Rank #1 (Strong Buy).