The parent company of Enbridge Energy Partners LP (EEP - Free Report) , Enbridge Inc. (ENB - Free Report) announced its plans to spend up to C$600 million to expand its gas distribution system in the Greater Toronto Area (GTA). The expansion is intended to meet growing demand and ensure safe delivery of natural gas to customers.
The proposed expansion will comprise two segments of pipeline and associated facilities to boost the current distribution system. Post completion, the pipeline will deliver natural gas to the municipalities of Toronto, Brampton, Mississauga, Vaughan, Richmond Hill and Markham.
Management expects the project to serve growing customer needs and ensure uninterrupted gas supply. The company is expected to benefit from the increasing population in the GTA. This will also make them one of the largest and fastest growing natural gas distributors in North America.
The project is expected to be constructed in 2014 and 2015, subject to approval from the Ontario Energy Board.
Calgary-based Enbridge Inc. is a leader in delivering energy. It operates in Canada and the U.S. and has the world's longest crude oil and liquids transportation system. Enbridge is involved in natural gas gathering, transmission and midstream businesses and is also engaged in power transmission. The company provides distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, the company is expanding its interests in wind and solar energy, geothermal and hybrid fuel cells.
Shares of Enbridge currently carry a Zacks #2 Rank, which translates into a short-term Buy rating.