For The Archives -- Enbridge (EEP) Assets -- July 7, 2015

For the archives. Some of Enbridge (EEP)'s assets:

Enbridge’s Lakehead system transfers over 60% of the Canadian oil output into the U.S. This unique position helps the partnership to capitalize on the growing Canadian oil sands production. Moreover, Enbridge holds 35% share in the Texas Express pipeline and the Ajax project. This increases the partnership’s natural gas liquids handling and raises the prospect for significant growth.

Enbridge’s Liquids segment is also poised to benefit from increasing production in the Bakken Shale and Canadian Oil Sands regions, as well as higher revenues from Alberta Clipper. The partnership plans to increase crude takeaway capacity in the Bakken and to enhance the shipping of crude eastward to the upper Midwest and Canada refineries.

However, Enbridge’s midstream natural gas business is sensitive to changes in natural gas supply, demand fundamentals and commodity cycles associated with gas processing margins. Furthermore, with the expansion of its natural gas gathering and processing business, Enbridge has increased its risk exposure to commodity prices.

Meanwhile, the update on Pipeline No. 3 is simply depressing no matter how much everyone wants to spin a positive story. Note: this story is very, very new, posted July 3, 2015. 

As the CEO of Canada’s largest pipeline company and backer-in-chief of the Northern Gateway, the 54-year-old isn’t about to win certain popularity contests, especially in British Columbia where the pipeline is set to link Alberta crude to big, hulking oil tankers destined for Asia.

The $6.5-billion Northern Gateway proposal to take as much as 525,000 barrels per day of Alberta crude to Asian markets via the West Coast, is a lightning rod for many who believe its construction would spell doom for the environment.

Read the rest of the story at the link: it's going to be much more expensive, and the tea leaves suggest it won't get built at all, regardless of sunk costs.