Canadian pipeline operator Enbridge plans to start up its Line 3 replacement project on October 1. The project will increase Line 3’s existing capacity from 370,000 bpd to 760,000 bpd and is expected to alleviate the bottleneck for the shipping of heavy Canadian crude oil into the US. The 1,100-mile (17,700 kilometre) Line 3 replacement connects oil sands production centers in Alberta, Canada to Superior, Wisconsin. Enbridge also plans to expand the capacity of its Southern Access crude oil pipeline from Wisconsin to Illinois, from 996,000 bpd to 1.2 million bpd.
Canadian oil production is projected to hit new highs in the fourth quarter of 2021. Hence, the start-up of Line 3 will be timed well to provide a new export conduit. Oil producers are also looking forward to the capacity increase of the Trans Mountain Pipeline, expected to be complete by the end of 2022. The two pipelines will be crucial for Canada’s oil industry, especially after US President Joe Biden cancelled permits of TC Energy’s Keystone XL pipeline.
