Post by
WhoSnext on Jun 15, 2014 12:22pm
Northern Gateway
I believe the Canadian Government will approve the Northern Gateway by Tuesday the 17th. Although I believe there will be approval, First Nations have proclaimed this pipeline "dead money". Enbridge has also stated even given approval they will not commence right due to these issues.
I have reviewed a CIBC analyst statement posted on this bullboard and was wondering are there any pipelines that may benefit Canexus? Or as Canexus is by rail all pipelines are deleterious to its business? The analyst suggests the Gateway may be beneficial due to the area becoming a small crude oil hub. It seems to me if Bruderheim was to become a small oil hub then NATOs value would appreciate. Any thought are appreciated.
Some of the CIBC analysts remarks below:
Location—Bruderheim is located at the crossroads of CNR and CP mainlines, and NE of Edmonton. Bruderheim may also become an important crude oil hub (albeit on a smaller scale) as Enbridge Northern Gateway is expected to originate from Bruderheim.
MEG Diluent Stripping Plant—The new plant is expected to be completed by late 2015 (capex $75 million). The stripper plant will be able to remove diluent from the bitumen blend to be shipped by rail, which should help to improve the economics of rail transportation closer to pipeline. We believe that MEG Energy (MEG-TSX) building hard assets at Bruderheim means that MEG is likely to move more volume via this terminal.