On Monday, Canada’s Enbridge Inc. said that the US Army Corps of Engineers has granted its Line 3 crude pipeline replacement project some federal permits, which drives the project closer to a realization after years of delay.
At the moment, Enbridge still requires the Minnesota Pollution Control Agency to issue a final construction stormwater permit, and the Minnesota Public Utilities Commission to issue the authorization to construct before it can start the work on the replacement project.
Enbridge has expected that the construction could start before the end of 2020, while its Canadian portion has been completed.
Line 3, built in the 1960s, carries crude from Canadian oil hub Alberta to US Midwest refiners under its nameplate capacity due to age and corrosion. The replacement project would enable Enbridge to double its transfer capacity to 760,000 bpd.
However, permits for the project face repeated challenges in Minnesota, where reviews have been going on for about five years. Earlier in November, Minnesota regulators approved essential permits for Line 3, including the contested 401 Water Quality Certification. The Minnesota Department of Natural Resources also released the final eight permits.
According to IA Securities, the Line 3 replacement project would start having an impact on Enbridge’s finance by the fourth quarter of 2021.
