From the Saskatoon StarPhoenix
The world’s largest pipeline company plans to spend $5.3 billion replacing parts of its massive “Line 3” pipeline that runs from Hardisty, Alberta, through Saskatchewan, to Gretna, Manitoba.
Enbridge Pipelines Inc. announced Thursday morning that the massive construction project is expected to begin this summer, with the new 36-inch line coming into service in the second half of 2019.
The project also includes an additional US$2.9 billion to be spent on sections of the line in the U.S.
“Line 3 is a critical piece of energy infrastructure that supports our economy and assures reliable and cost-effective supply of energy,” Enbridge president and CEO Al Monaco said in a statement.
“The new Line 3 will comprise the newest and most advanced pipeline technology and provide much needed incremental capacity to support Canadian crude oil production growth and United States and Canadian refinery demand.”
The Calgary-based company said in a news release that replacing the line is “the most timely and reliable transportation solution for transporting Western Canadian crude oil to refinery markets” in the U.S. and eastern Canada.
The new pipeline, the company said in the news release, will use “the latest available high-strength steel and coating technology, while the existing segments will be removed from operation.”
Costs have risen nine per cent above the original estimate made in 2014 due to delays in the regulatory process, route modifications, scope changes and other factors, the company said.
Enbridge’s plan is the second major oilfield investment announced in recent months, following Husky Energy Inc.’s claim that it will invest $1 billion in three new heavy oil extraction plants over the next several years.
