Enbridge Resumes Waupisoo Transport - Analyst Blog
28 June 2013 - 9:05AM
Zacks
Canadian pipeline operator, Enbridge Inc.
(ENB), has affirmed that its Waupisoo Pipeline (Line 18) is back in
operation. The pipeline, which runs between the Cheecham Terminal
and Edmonton, was shut down owing to significant release from the
nearby Line 37 pipeline.
On Jun 22, Enbridge’s leak detection system identified a potential
release from Line 37 pipeline, which connects facilities in the
Long Lake area to Enbridge’s Terminal in Cheecham, Alberta. The
company believes that the leakage was mainly due to ground movement
caused by torrential rainfall in north Alberta. Consequently, for
precautionary measures, Enbridge closed all the pipelines in the
area, including Line 18.
However, according to Enbridge, the Alberta Energy Regulator
permitted the restart of Line 18 on Jun 25. Moreover, Athabasca
Pipeline’s (Line 19) southern part, which runs between Cheecham and
Hardisty, Alberta, was back to service on Jun 23, 2013.
Enbridge reveals that it will conduct further examinations on the
Line 37 incident area, in order to safely resume the operations of
the other lines in the affected region. Moreover, the company has
been bearing a cost of $1 million per day, owing to the shutdown of
all the pipelines adjacent to the Line 37 pipeline.
Enbridge is a leader in energy transportation and distribution in
North America and internationally. As a transporter of energy,
Enbridge operates the world's longest crude oil and liquids
pipeline system in Canada and the United States. The company also
has international operations and growing involvement in the natural
gas transmission and midstream businesses.
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 1 to 3 months.
Meanwhile, one can look at Cheniere Energy Partners
LP (CQP), Oiltanking Partners LP (OILT)
and Pembina Pipeline Corp (PBA) as good buying
options. These oil production and pipeline operators – sporting a
Zacks Rank #1 (Strong Buy) – have solid secular growth stories with
the potential to rise significantly from the current levels.
CHENIERE ENERGY (CQP): Get Free Report
ENBRIDGE INC (ENB): Free Stock Analysis Report
OILTANKING PTNR (OILT): Free Stock Analysis Report
PEMBINA PIPELN (PBA): Free Stock Analysis Report
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