Enbridge Inc., a company which operates Canada’s largest oil pipeline is making a 900
million dollars investment to become the owner of the Cabin Gas Plant in British Columbia. The plant is worth 250 million dollars but the rest will finance the plant’s expansion. This investment is an initial step to execute the company’s strategy to establish a strong position in the Canadian midstream business focused on growing unconventional gas production in B.C. and Alberta.

I believe this is a keen purchase by Enbridge Inc. because of what is happening now regarding the Keystone Pipeline project. The investment allows the company to expand its natural gas business and create jobs in B.C. and Alberta. The debate of oil and alternative energy sources triggered by the Keystone Pipeline project could increase potential demand for natural gas due to the fact that natural gas is a greener energy source compare to oil and coal. Solely based on the negative feedback of the pipeline project, Enbridge should be able to see a strong financial performance with its natural gas business while maintain peace between environmental activists and jobs seekers.

Sources: Globe and Mail                Picture 1                      Picture 2