Canadian pipeline operator, Enbridge Inc. (ENB - Snapshot Report), 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 - Snapshot Report) and Pembina Pipeline Corp (PBA - Snapshot Report) 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.