The parent company of
Enbridge Energy Partners LP
) announced its plans to spend up to C$600 million to expand its
gas distribution system in the Greater Toronto Area (GTA). The
expansion is intended to meet growing demand and ensure safe
delivery of natural gas to customers.
ENBRIDGE EGY PT (EEP): Free Stock Analysis
ENBRIDGE INC (ENB): Free Stock Analysis Report
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The proposed expansion will comprise two segments of pipeline and
associated facilities to boost the current distribution system.
Post completion, the pipeline will deliver natural gas to the
municipalities of Toronto, Brampton, Mississauga, Vaughan, Richmond
Hill and Markham.
Management expects the project to serve growing customer needs and
ensure uninterrupted gas supply. The company is expected to benefit
from the increasing population in the GTA. This will also make them
one of the largest and fastest growing natural gas distributors in
The project is expected to be constructed in 2014 and 2015, subject
to approval from the Ontario Energy Board.
Calgary-based Enbridge Inc. is a leader in delivering energy. It
operates in Canada and the U.S. and has the world's longest crude
oil and liquids transportation system. Enbridge is involved in
natural gas gathering, transmission and midstream businesses and is
also engaged in power transmission. The company provides
distribution services in Ontario, Quebec, New Brunswick and New
York State. As a generator of energy, the company is expanding its
interests in wind and solar energy, geothermal and hybrid fuel
Shares of Enbridge currently carry a Zacks #2 Rank, which
translates into a short-term Buy rating.