Enbridge receives approval for $6.93bn Line 3 replacement project

Canadian energy transportation company Enbridge has received a Certificate of Need from the Minnesota Public Utilities Commission (PUC) for a $6.93bn project to replace its Line 3 oil pipeline.

The regulator approved Enbridge’s preferred route for the Line 3 replacement development with minor modifications and certain conditions.

Enbridge’s latest project is set to require an investment of C$5.3bn ($4.03bn) in Canada and $2.9bn in the US.

The initiative will see the replacement of the existing 1,031m pipeline that connects Hardisty, Alberta, with Superior, Wisconsin.

Enbridge president and CEO Al Monaco said: “Replacing Line 3 is first and foremost about the safety and integrity of this critical energy infrastructure.

“This project will also help ensure Minnesota and area refineries reliably receive the crude oil supply they need for the benefit of all Minnesotans and the surrounding region.”

“The PUC’s decision to approve our preferred route with modifications is a good outcome for Minnesota and the result of listening carefully to stakeholders and an effective consultation process.

“We believe our route best protects the environment and has an overwhelming support of communities.”

According to the company, the initiative is expected to provide incremental capacity to support the growth of Canadian crude oil production, in addition to demand from US and Canadian refineries.

Enbridge is currently slated to place the new Line 3 into service during the second half of 2019.

However, the development is facing opposition from American Indian tribes and environmental activists, who plan to continue their fight against the project.

Line 3 was originally installed during the 1960s and forms an integral part of Enbridge’s Mainline System.

It is expected to have an average annual capacity of 760,000 barrels per day once the proposed 36in replacement pipeline comes online.