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Enbridge Edges Up, Less Than $1 Off Yr Highs As Agrees Northern Gateway Pipeline Terms With Shippers

Enbridge Inc (ENB.TO) said on Wednesday would-be shippers have agreed to terms for moving oil on its $5.5 billion Northern Gateway pipeline to Canada's West Coast, a big commercial step for a project facing stiff opposition from native groups, Reuters reported. Enbridge is up 11 cents at $31.63, leaving it less than $1 shy of a year high $32.50.

Enbridge did not name the companies that have agreed to long-term shipping deals on Northern Gateway, a line aimed at opening up new crude markets for Canada's vast oil sands region in northern Alberta, but it said they included producers as well as players in Asian markets, Reuters said

The company, whose pipelines carry the bulk of Canadian oil exports to the United States, filed the agreements with the National Energy Board, which is scheduled to start hearings on Northern Gateway in January, it added.

The step is important as it supports the regulatory application by setting out the terms under which the pipeline will operate and generate a planned 12 percent return, FirstEnergy Capital Corp analyst Steven Paget reportedly said.

However, he is not ready to slot Northern Gateway into his detailed financial outlook for Enbridge. "Because of the opposition to this, I expect to wait on the Joint Review Panel decision before adding this to my earnings estimates," Paget reportedly said.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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