Kinder Morgan, Inc. KMI recently announced its intention to restart the construction work for expansion of the Trans Mountain pipeline in August. The project was paused in spring owing to resistance from various provincial governments of British Columbia as well as municipalities, native groups, and environmental activists.
Notably, the Canadian government decided to buy the project in late May if Kinder Morgan did not continue with the construction. The pipeline expansion project is a significant one, as the country is suffering from severe bottlenecks .
The pipeline runs from Edmonton, Alberta to a port located in Vancouver, from where the products sail for international markets. Due to delay in regulatory approvals, especially from the British Columbia province, the multi-billion dollar expansion project was kept in hold.
In Alberta, the construction work of the pipeline will start in August, followed by British Columbia's North Thompson area in late September. Additional expansion work is expected in British Columbia's Lower Mainland.
Shortage of pipelines and rail transportation has disrupted the production schedule of the oil and gas producing companies in Western Canada. The companies had to slow down their activities due to obstruction in crude transportation.
Expansion of the Trans Mountain will provide the producers in the country with better access to global markets, which is in turn is expected to increase the capacity of the pipeline three times. Notably, the Canadian government hankering to buy it for C$4.5 billion ($3.4 billion) from Kinder Morgan to save the project further proves its importance in the country's oil and gas sector.
There are several other projects in the country like Enbridge Inc.'s ENB Line 3 replacement, ranging from Hardisty, Alberta to Superior, WI, which got delayed due to opposition. Another project, TransCanada Corp.'s TRP Alberta-to-Nebraska Keystone XL pipeline is facing considerable objection.
Headquartered in Houston, TX, Kinder Morgan is engaged in energy transportation and storage in North America. The company has lost 8.4% in the past year compared with 9.9% fall of its industry .
Zacks Rank and a Stock to Consider
Kinder Morgan currently has a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for a better-ranked stock like CNOOC Limited CEO , sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Hong Kong-based CNOOC is an integrated energy company. The company's top line for 2018 is anticipated to improve 64.4% year over year, while its bottom line is expected to increase 124.3%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNOOC Limited (CEO): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report TransCanada Corporation (TRP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research