Enbridge Inc. (ENB) cleared a major regulatory hurdle for its C$6.5 billion ($6.1 billion) Northern Gateway pipeline.
Canada’s National Energy Board approved the project, subject to 209 conditions, and said the country would be “better off” with the pipeline than without it, according to a report released yesterday in Calgary. Enbridge, Canada’s biggest pipeline company, next must seek approval from the federal government, which has 180 days to review the project.
Pipeline and some energy stocks have been in beautiful uptrends for years and have been in bullish consolidation recently. One major beneficiary of these pipelines is Pembia Pipelines ($PPL.TO). $PPL.TO is a Calgary-based company, engaged in providing transportation and midstream services. It owns and operates: pipelines that transport conventional and synthetic crude oil and natural gas liquids produced in western Canada; oil sands, heavy oil and diluent pipelines; gas gathering and processing facilities; and, an oil and natural gas liquids infrastructure and logistics business. It has facilities located in western Canada and in natural gas liquids markets in eastern Canada and the United States. Pembina also offers a spectrum of midstream and marketing services. Pembina’s Midstream business is organized into two segments: crude oil and NGL. The crude oil segment represents the Company’s midstream operations. The NGL segment includes two operating systems: Redwater West and Empress East. Pembina’s Conventional Pipelines business consists of a pipeline network, located 7,850 kilometers, that extends across much of Alberta and British Columbia.
This week $PPL.TO has broken out into all-time highs on strong volume. I have been long this stock since $33 and will maintain that position and collect the +4 % dividend as long as it holds the breakout level of $35.62.