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article imageEnbridge's Line 3 delay a major blow to Canadian oil industry

By Karen Graham     Mar 2, 2019 in Business
Enbridge's Line 3 pipeline replacement is being pushed back a year, the company announced Friday. The project, which was initially expect to be in service before the end of 2019 now won't be ready until the second half of 2020.
Calgary-based Enbridge said construction on Line 3 was pushed back because the Minnesota permitting process won't be completed until November and it could take an additional 60 days before the federal permits are received, according to Bloomberg.
We now have a firm schedule from the state on the timing of the remaining permits for our Line 3 replacement project," Al Monaco, the CEO of Enbridge said in a release, reports CBC Canada. The company says its permit applications were all submitted by October 2018.
Just two weeks ago, Enbridge was confident the $9-billion project would be in service before the end of this year. The replacement pipeline would move crude oil from Hardisty, Alberta, to Superior, Wisconsin, where it would connect with pipelines to the U.S. Gulf Coast.
Capacity on the aging pipeline has dropped to 370,000 barrels per day, while the new pipeline would restore the flow to ts original 760,000 barrels per day. The pipeline is nearly completed but has hit a snag. Minnesota's governor, siding with environmental and Indigenous groups, is opposing the pipeline.
Construction on Enbridge’s Line 3 Replacement Program began in Hardisty  Alberta on August 3  2017...
Construction on Enbridge’s Line 3 Replacement Program began in Hardisty, Alberta on August 3, 2017.
Pipeline woes abound
The line 3 replacement is not the only pipeline facing delays. Kinder Morgan's Trans Mountain pipeline expansion is once again stalled as it faces regulatory delays. Regulators have recommended approval of the Trans Mountain pipeline extension, but there is Bill C-69 to consider.
Bill C-69 is the Impact Assessment Act, which overhauls the way energy projects are assessed for their effects on the environment and their contributions to the social and economic well-being of the country. Alberta Premier Rachel Notley was in Ottawa Thursday to give the Senate her opinion on the bill.
TransCanada's Keystone XL is not faring much better and has faced a number of court challenges. The latest challenge occurred in February when U.S. District Court Judge Brian Morris ruled that TransCanada cannot do most work to prepare for construction, including setting up camps for workers who would build the pipeline if it is allowed to move forward. As it stands now, this ruling pushes the start of the pipeline to 2020 at the earliest.
More about Enbridge Line 3, delay of one year, canadian oil industry, Alberta, production cuts
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