Per Reuters, Enbridge Inc (ENB - Free Report) and Norwegian gas system operator Gassco are carrying out a technical study to evaluate the suitability of a 350-megawatt (MW) offshore wind project. Developed by Enbridge, the project is estimated to be an appropriate power source for one of Norway’s largest gas processing plants —Nyhamna.
The capacity was increased to 84 million cubic meters at the Nyhamna plant to handle output from the Aasta Hansteen field. The plant also manages output from Royal Dutch Shell plc’s (RDS.A) Ormen Lange field and is fed by a single grid line. The fragility of the grid system has led to outages in recent years and impacted exports to the U.K.
The power supply for the plant is being planned to be sourced from the Havsul 1 project. With annual capacity of 1 terawatt hour (TWh) of electricity, the project will benefit the gas plant and supply to the local grid.
If the plan materializes, the project will become Norway’s first offshore wind farm. The project was fully certified by the country's energy regulators in 2009. However, it was shelved in 2012 due to profitability concerns and inadequate subsidies. It was originally developed as part of a 1.5 gigawatt (GW) plan along with two other offshore wind schemes that were blocked.
The technical study that is being carried out by Gassco is expected to close by the spring of 2019, while a final investment decision for Havsul is anticipated after 2019.
The company has the longest as well as the most advanced crude and liquids pipeline system in the world that is spread over more than 17,018 miles. In Canada, the company is touted to be the largest natural gas distributer.
Zacks Rank & Stocks to Consider
Currently, Enbridge carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are SunCoke Energy, Inc (SXC - Free Report) , Enterprise Products Partners L.P. (EPD - Free Report) and Energen Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke acquires, owns and operates the coke making and coal mining operations. The company delivered an average positive earnings surprise of 302.6% in the last four quarters.
Headquartered in Houston, TX, Enterprise Products Partners is among the leading midstream energy players in North America. It pulled off an average positive earnings surprise of 9.3% in the last four quarters.
Headquartered in Birmingham, AL, Energen is a leading oil and natural gas exploration and production company. It pulled off an average positive earnings surprise of 18.6% in the last four quarters.
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