Rupture of Natural Gas Transmission Pipeline May Dent Enbridge’s (ENB, $32.32) Sales
After a strong Q3 performance, Enbridge Inc. is hoping to continue the momentum by cashing-in on the impending colder-than-expected weather conditions to further boost its top and bottom lines.
But there's a problem overshadowing these efforts. Following the last month's rupture of its natural gas transmission pipeline, the company’s supply of natural gas to its customers has been limited. Following some repair work, Enbridge has been able to provide partial service to customers of its BC Pipeline. However, it has asked its retail customers to conserve throughout the winter as the lines are expected to operate at only ~55% of its operating pressure, even though a majority of the repairs are reportedly complete.
BC Pipeline comprises of two parallel lines, one 36-in. and the other 30-in., that move gas into the U.S. Pacific Northwest, but until both pipelines are back at full operating pressure, there is not enough gas to support the typical winter consumption of its customer base. The only positive for Enbridge is that by the end of the month lines should operate at around 80% of its capacity.
