Enbridge aims big with new line

Article Excerpt

Enbridge continues to invest heavily in its pipelines and other businesses. Since 2008, it has started up over $12 billion worth of new growth projects. That’s equal to 39% of its market cap. The company now wants to take advantage of rising oil sands production by building the Northern Gateway pipeline, which would pump crude oil from Edmonton to a proposed storage terminal in Kitimat, B.C. From there, the oil would be shipped by tanker to refineries in Asia. At $5.5 billion, Northern Gateway is the single biggest pipeline project in Enbridge’s 63-year history. If regulators approve, the line could start up in 2017. The outlook for Northern Gateway is bright, particularly as the U.S. government has delayed rival TransCanada Corp.’s (Toronto symbol TRP) Keystone XL pipeline, which would pump oil from Alberta to Texas. Even if the U.S. approves Keystone XL, there is plenty of oil for both lines. ENBRIDGE INC. $39 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 779.2…