Back to top

Image: Bigstock

Enterprise, Enbridge to Start Seaway Pipeline's Open Season

Read MoreHide Full Article

Seaway Crude Pipeline Company LLC — a jointly owned entity by Enterprise Products Partners LP (EPD - Free Report) and Enbridge Inc. (ENB - Free Report) — has decided to launch an open season to expand capacity of its existing crude pipeline network that extends to the Texas Gulf Coast from Cushing, OK.

Precisely, with the upgradation of pumps, Seaway will be able to continue with its cost-efficient expansion project. Seaway announced that the open season will gauge the shipper’s commitment to transport additional crude volumes and is scheduled to commence on Dec 16, 2019. The season will continue till Feb 14, 2020. Notably, the competitive fee schedule for carrying a barrel of light crude oil through the expanded pipeline system will start from 99 cents. The fee structure will differ according to different transportation volume, term, and destination.    

With the expansion, the pipeline network will be able to transport additional light crude oil at a rate of at least 200,000 barrels per day (Bbl/D). Seaway added that the expanded system will be initially transporting up to 100,000 Bbl/D of light crude beginning in the second half of 2020. Notably, the project will start operating at its peak in 2022.  

There could be further expansion of the existing pipeline system if Seaway witnesses sufficient customer demand. Overall, the expansion project will provide Seaway with additional fee-based revenues.

Enbridge, based in Calgary, CA, with 50% ownership in Seaway, currently carries a Zacks Rank #2 (Buy). The other joint-venture partner, Enterprise Products, headquartered in Houston, TX, carries a Zacks Rank #3 (Hold). Meanwhile, twoplayers in the energy space worth considering are Murphy USA Inc (MUSA - Free Report) and CNX Resources Corporation (CNX - Free Report) . While Murphy USA sports a Zacks Rank #1 (Strong Buy), CNX Resources carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA beat the Zacks Consensus Estimate in three of the prior four quarters.

CNX Resources has a trailing four-quarter positive surprise of 34.8%, on average.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.  

See the pot trades we're targeting>>

Published in