Seaway Crude Oil Pipeline Company LLC - a 50/50 joint venture
between the affiliates of
Enterprise Products Partners L.P
) - announced that it has completed the first expansion project
of its Seaway oil pipeline. The pipeline runs between Cushing and
the U.S. Gulf Coast.
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The capacity of the 500-mile, 30-inch diameter pipeline has been
raised to 400,000 barrels per day from about 150,000 barrels per
day. Consequently, an extra 250,000 barrels per day will flow
from the oil storage center in Cushing, Oklahoma to the
refineries. The Seaway system has a terminal and crude oil
distribution network. The network originates in Texas City, Texas
and caters to all the refineries in the Houston area.
The expansion of this major pipeline was an effort to alleviate
the obstacles faced by the shippers at Cushing, Oklahoma. The
shippers were facing a bottleneck in transporting the increasing
inland U.S. oil yield to more lucrative markets on the U.S. Gulf
Enterprise is the operator of the project, while Enbridge
acquired its stake from
) in November 16, 2011.
Earlier, in May 2012, Enterprise and Enbridge finished the
reversal of the Seaway Pipeline, which previously allowed the
pipeline to transport crude oil from the U.S. Gulf Coast to
Calgary-based Enbridge is a leading energy delivery company. Its
operations are spread across Canada and the U.S. that include the
world's longest crude oil and liquids transportation system.
Enbridge is also involved in natural gas gathering, transmission
and midstream services apart from its power transmission
business. The company delivers natural gas to customers in
Ontario, Quebec, New Brunswick and New York State. Finally, as a
generator of energy, Enbridge is also focused on developing
alternative energy solutions like wind and solar energy,
geothermal and hybrid fuel cells.
Enbridge currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.