The parent company of Enbridge Energy Partners LP (EEP - Free Report) – Enbridge Inc. (ENB - Free Report) – announced its plans to spend up to $400 million to expand its Canadian mainline system between Hardisty, Alberta, and the U.S. border.
The pipeline is an extension of Enbridge’s pipeline construction plan at Edmonton and Hardisty, announced last November. The expansion will augment the capacity by 230,000 barrels per day (bpd) and involves increased pumping horsepower.
The expansion plan is subject to regulatory approval and is expected to be operational in 2015. The plan has been approved by mainline shippers under the conditions of Enbridge Pipelines Inc – a subsidiary of Enbridge Inc., Competitive Tolling Settlement (CTS).
In September last year, Enbridge Inc. announced its plan to spend up to C$600 million to expand its gas distribution system in the Greater Toronto Area (GTA). The expansion was aimed at meeting growing demand and ensures safe delivery of natural gas to customers.
Enbridge Energy Partners also plans to expand the Lakehead System pipeline connecting North Dakota and Wisconsin. This extension will add 230,000 bpd to the capacity at an estimated cost of about $200 million.
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 Inc. currently carry a Zacks #3 Rank, which translates into a short-term Hold rating.