PROCESSWEST Magazine Online

Progress made on Line 3, added Canadian capacity coming

November 11, 2019   Don Horne




Enbridge Inc. is adding more pipeline capacity for Canadian oil producers this year and sees progress on the crucial $9 billion replacement and expansion of its Line 3 crude-oil pipeline.

Regulators in the Minnesota are due to submit a revised environmental impact statement for the project by Dec. 9, and state permitting agencies are advancing their work as much as possible in parallel with that process, Calgary-based Enbridge told Bloomberg News in its third-quarter earnings statement on Friday.

The company reiterated that, depending on the final in-service date, the cost may exceed its current estimates, though it also said it doesn’t anticipate any material impacts.

Key Takeaways

  • Enbridge’s update on Line 3, a project that has been delayed for over a year by regulatory hurdles, may provide some grounds for optimism for Canadian oil producers. They’ve been counting on the conduit to help clear a glut of crude and allow Alberta to end its mandatory output cuts.
  • North America’s largest pipeline company also offered hope for producers with the guidance that it’s adding about 100,000 barrels of daily oil-shipping capacity by optimizing its current system. That’s up from a previous forecast of about 85,000 barrels.
  • The company also showed investors it’s on track from an earnings perspective. Third-quarter profit, excluding some items, was 56 Canadian cents a share, topping analysts’ 51-cent average estimate. Enbridge also said it expects its distributable cash flow for the year to exceed the midpoint of its guidance range.

(Bloomberg News)

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