Enbridge Line 37 Spills Oil - Analyst Blog
June 24 2013 - 1:00PM
Zacks
Canadian pipeline operator,
Enbridge Inc.’s (ENB) subsidiary Enbridge
Pipelines (Athabasca) Inc. shut down and isolated its Line 37
pipeline north of Cheecham, Alberta, after the leak detection
system detected a potential release from the line. Though the
spillage is now under control, it is most likely to attract the
attention of safety regulators.
The 12-inch, 17-kilometers long Line 37 pipeline was constructed in
2006. It connects facilities in the Long Lake area to Cheecham and
is part of Enbridge's Athabasca system.
Enbridge’s initial estimates place the volume of the light
synthetic oil release at approximately 750 barrels. As the news of
oil release was received, Enbridge temporarily closed the two
larger nearby pipelines Athabasca and Waupisoo.
The Athabasca Pipeline transports crude oil from various oil sands
projects to the mainline hub at Hardisty, Alberta. The Waupisoo
Pipeline system carries Alberta oil sands crude from Enbridge
Athabasca’s Cheecham Terminal, south to the Enbridge Pipelines Inc.
Edmonton Terminal.
Enbridge Inc., a Canadian company, is a leader in energy
transportation and distribution in North America and
internationally. As a transporter of energy, Enbridge operates, in
Canada and the United States, the world's longest crude oil and
liquids pipeline system. The company also has international
operations and growing involvement in the natural gas transmission
and midstream businesses. As a distributor of energy, Enbridge owns
and operates Canada's largest natural gas distribution company. It
provides distribution services in Ontario, Quebec, New Brunswick
and New York State.
However, we remain apprehensive about the company’s midstream
natural gas business, which is sensitive to changes in natural gas
supply-demand fundamentals and commodity cycles associated with gas
processing margins.
Enbridge Inc. currently has a Zacks Rank #3 (Hold). Other stocks
from the industry that are presently performing well include
Sanchez Energy Corporation (SN), Enerplus
Corporation (ERF) and Hornbeck Offshore Services,
Inc. (HOS). All these companies carry a Zacks Rank #1
(Strong Buy).
ENBRIDGE INC (ENB): Free Stock Analysis Report
ENERPLUS CORP (ERF): Free Stock Analysis Report
HORNBECK OFFSHR (HOS): Free Stock Analysis Report
SANCHEZ ENERGY (SN): Free Stock Analysis Report
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