Line 3 Replacement on schedule despite higher costs and more regulatory hurdles

Aug 3

Aug 3 Line 3 Replacement on schedule despite higher costs and more regulatory hurdles

Enbridge says it plans to start construction on some segments of its Line 3 Replacement Program later this summer, keeping the in-service date to the second half of 2019.

Capital costs for the project have risen by 9% to $5.3 billion on the Canadian portion and 12% to US$2.9 billion for the US segment. Enbridge blames the added costs on regulatory delays and route modifications. However, the company says it expects to benefit from the higher Canadian dollar and lower operating costs, keeping project economics unchanged from its original 2014 sanction estimates.

Houston-based Quanta Services was awarded the contract for construction and installation of the Canadian section of the line, that runs from Hardisty, Alberta, through the province of Saskatchewan. Quanta says it plans to start construction later this month.

CANADIAN PORTION OF LINE 3 REPLACEMENT PROGRAM (COURTESY ENBRIDGE)

Enbridge says it already has all permits in place in the states of Wisconsin and North Dakota. Construction in Wisconsin should begin in the second half of this year.

Permits are still pending in the state of Minnesota. The company says it plans to submit its Final Environmental Impact Statement to the Minnesota Department of Commerce in the third quarter of this year. If all goes according to plan, construction should begin in the second half of 2018.

US PORTION OF LINE 3 REPLACEMENT PROGRAM (COURTESY ENBRIDGE)

Line 3 is part of Enbridge's Mainline System, running 1,659 km (about 1,000 miles) from Hardisty, Alberta to Superior, Wisconsin. Once completed, capacity will be restored to 760,000 bbl/day of crude.