Good news came & Energy Stocks surged for one of Canada’s top industries after Minnesota regulators gave the go ahead for the Enbridge Line 3 pipeline.
This approval provides the Line 3 pipeline, belonging the Calgary-based company Enbridge, with a desperately needed upgrade, totaling a whopping $9 billion - $5.3 billion of which has been budgeted towards replacing and upgrading the Canadian portion of the pipeline running through Alberta, Saskatchewan, and Manitoba.
The Canadian portion of the project, which also includes new operating valves, pump stations, and storage tanks, began in the summer of 2017 and is anticipated to be in service for the second half of 2019, while the American portion, through Minnesota, has already seen completion.
The current pipeline, which is corroded and cracked due to age, has seen its flow capacity reduce by almost half due to safety concerns. With the upgrade, Enbridge will once again be able to use the pipeline to its full potential – transporting around 760,000 barrels of oil per day.
While this replacement pipeline will obviously have a positive impact on the profits seen by Canadian oil companies, it is also one more step towards a incident-free portfolio, which is one of Enbridge’s main concerns.
Currently the company sits with a safe delivery record of 99.99966%, which, while still an impressive number, leaves the slightest bit of room for improvement.
Enbridge’s dedication to pipeline safety is made clear through their continued investments into tools, technologies, and strategies that are used to ensure their transportation and distributions systems operate safely, reliably, and in an environmentally friendly manner.
For The Public
It’s been made clear that there are many who disapprove of the project, such as Commissioner Dan Lipschultz calling it “an accident waiting to happen” and comparing it to a loaded gun. There have also been protests by many of the local indigenous groups worried that the project will harm their land and impact their way of life.
In reality, this project will benefit the public as well as the industry. It will reduce the frequency and magnitude of ongoing maintenance activities, it will boost the economies of local communities, and will benefit landowners affected by the product.
To ensure the benefit reaches the public, Enbridge welcomes feedback and concerns so they can incorporate this feedback into the project. Enbridge is dedicated to the safe transport of crude oil and the communities affected by it.