) − the general partner of
Enbridge Energy Partners L.P.
) − aims to expend $1.3 billion on its Line 6B in response to the
surge in demand from refiners for Canadian crude.
The project involves the replacement of 160 miles of existing
pipeline in Michigan as well as another 50 miles of line in
Indiana. This comprises the second phase of a replacement plan of
the line − stretching from Griffith, Indiana, to Sarnia,
The first phase, comprising alternation of 75 miles of pipeline
segment, is due for completion later in 2012.Line 6B was closed
down for two months following a July 2010 oil spill incident that
poured more than 20,000 barrels of crude oil into Michigan
In mid-April, Enbridge filed an application with the Michigan
Public Service Commission for the replacement of 160 miles of
pipeline. The altered line would encompass 110 miles of a 36-inch
pipe and 50 miles of a 30-inch pipe. Additionally, 50 miles of
pipeline is expected to be altered in Indiana.
Notably, the latest replacement is expected to nearly double the
daily capacity of Line 6B to 500,000 barrels of crude oil from the
present 240,000 barrels. This will eventually aid eastern Canadian
refineries in response to growing crude supplies. The ongoing
refinery upgrades and expansion in Michigan and Ohio would also
lend support to the growing light crude production at Bakken Shale
Calgary, Alberta based Enbridge Inc. is Canada's No. 2 pipeline
operator. It remains engaged in energy transportation and
Houston, Texas-based Enbridge Energy Partners is engaged in the
gathering, processing and transmission of natural gas and crude
oil. The partnership is best known for its ownership of the
Lakehead System, one of the world's longest petroleum pipeline
systems. This system is the U.S. portion of the main artery for
crude oil supply from Western Canada to refining centers in the
Upper Midwest of the U.S. and Ontario in Canada.
Enbridge Inc. hold a Zacks #4 Rank (short-term Sell rating) and
Enbridge Energy holds a Zacks #3 Rank, which is equivalent to a
short-term Hold rating.
ENBRIDGE EGY PT (EEP): Free Stock Analysis
ENBRIDGE INC (ENB): Free Stock Analysis Report
To read this article on Zacks.com click here.