Enbridge Energy Allowed to Operate Line 67 at Full Capacity
Oil and liquid petroleum transporter Enbridge Energy Partners, L.P. EEP recently received a Presidential permit allowing it to increase oil transportation up to its designed full capacity in Line 67 pipeline.
At the U.S.-Canada border near Neche, ND, spreading over three miles, the pipeline has the capacity to carry roughly 890,000 barrels of crude oil and other hydrocarbons every day. Hence, the permission will enable Enbridge Energy to nearly double its capacity through the pipeline – goes through a terminal of Enbridge Energy located in Superior, WI – from the previous shipping capacity of 450,000 barrels per day.
The supplies will reach the downstream refinery markets located in Eastern, Midwest and the Gulf Coast areas of the United States and Canada.
Enbridge Energy, where Enbridge Inc. ENB has a 34.9% economic interest, constructed the pipeline originally in 2010. The latest permit received by the partnership has been signed by the Acting Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs.
The Department of State believes that the pipeline will serve national interest. Enbridge had applied for the permit in 2012 but wasn’t successful. TransCanada Corporation's TRP Keystone XL project also met the same fate as the Obama administration delayed the process due to tribal and environmental concerns.
The department believes that the proposed extension will uphold U.S. energy security. Canada being one of the closest neighbors and an ally, the decision of the Trump administration comes as a positive. The department expects the project to make United States less vulnerable to foreign regimes, which utilize energy as an economic weapon.
About Enbridge Energy
Enbridge Energy owns the U.S. portion of the world's longest liquid petroleum pipeline. It owns and operates crude oil and liquid petroleum transportation and storage assets and natural gas assets. It operates through two segments, Liquids and Natural Gas. Enbridge Energy Partners is headquartered in Houston, TX.
Price Performance
Enbridge Energy has lost 39.4% of its value year to date compared with 14.5% fall of its industry.
Zacks Rank and Stocks to Consider
Enbridge Energy currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the oil and energy sector are Par Pacific Holdings, Inc. PARR and Canadian Natural Resources Ltd. CNQ. Both sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific’s sales for the third quarter of 2017 are expected to increase 28.5% year over year. The company delivered a positive average earnings surprise of 9.1% in the last four quarters.
Canadian Natural’s sales for the third quarter of 2017 are expected to increase 82.3% year over year. The company delivered a positive earnings surprise of 46.9% in the second quarter of 2017.
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