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).
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