Enbridge’s Line 3 Replacement Project Gets Delayed
On March 1, after the markets closed, Enbridge announced that it received a timeline for the permits for its Line 3 Replacement project.
Project gets delayed
On March 1, after the markets closed, Enbridge (ENB) announced that it received a timeline for the permits for its Line 3 Replacement project from various agencies in Minnesota. Enbridge has submitted permit applications to various departments and agencies including the U.S. Army Corps of Engineers, the Minnesota Pollution Control Agency, and the Minnesota Department of Natural Resources. The state’s timeline indicates that all of the required permits will be provided by November.
Enbridge expected to get the permits in the second quarter. The project was expected to become operational by the end of 2019. With the new timeline, the company expects the project to become operational in the second half of 2020.
Timeframe in place
Although the project has been delayed, the company has a firm timeline for the permits. Al Monaco, Enbridge’s president and CEO, said, “We now have a firm schedule from the State on the timing of the remaining permits for our Line 3 Replacement project.”
The replacement project is expected to cost 9 billion Canadian dollars. The project involves replacing all of the remaining segments of Enbridge’s Line 3 pipeline, which runs between Hardisty, Alberta, and Superior, Wisconsin.
Midstream stocks rise
So far, Enbridge stock has risen ~20% this year—compared to 17% in the last year. The stock is trading 6% above its 50-day moving average and 10% above its 200-day moving average. In comparison, Kinder Morgan (KMI) has risen by 28% in 2019. TransCanada (TRP) and Energy Transfer (ET) have risen 25% and 13%, respectively, year-to-date.
Some of the major pipeline projects continue to get delayed due to environmental concerns and the regulatory approval process. To learn more, read Pipeline Controversies: Updates on Top Projects.