CALGARY, Alberta — A Minnesota regulator has confirmed its approval of Enbridge Inc’s Line Three crude oil pipeline substitute, permitting the $9 billion undertaking that may ship extra barrels out of western Canada to maneuver ahead, the corporate stated on Wednesday.
The Minnesota Public Utilities Fee initially accredited Enbridge’s plan to rebuild the growing old 1,031-mile (1,660-km) pipeline that runs from Alberta to the U.S. state of Wisconsin in June, however that call was challenged by Minnesota’s governor in February.
On Tuesday, the PUC denied all petitions asking for its resolution to be reconsidered, in line with minutes of the assembly. Minnesota PUC spokesman Dan Wolf stated a proper order will likely be issued quickly.
“The PUC confirmed its resolution to approve the circumstances positioned on L3R’s (Line Three Substitute) Certificates of Want – circumstances meant to guard Minnesotans – permitting this vital power infrastructure modernization undertaking to maneuver ahead,” Enbridge stated in an announcement.
The choice clears a hurdle for the pipeline and is welcome information for Canadian oil producers battling congestion on export pipelines as crude manufacturing will increase. The low cost final yr on Canadian heavy crude versus U.S. barrels widened to file ranges, prompting the Alberta authorities to impose manufacturing curtailments to attract down crude storage inventories and assist shore up costs.
In a blow to Alberta’s oil and fuel sector, Line Three hit a snag earlier this month when Enbridge stated its substitute will likely be delayed by virtually a yr till the second half of 2020 whereas the undertaking awaits state and federal permits.
“It (the PUC resolution) is nice information for Enbridge undoubtedly, however they nonetheless have the problem of native permits which are delayed,” Wooden Mackenzie analyst Mark Oberstoetter stated.
In its assertion, Enbridge stated it’s hopeful the remaining allowing schedule stays on observe.
Line 3, which started service in 1968, at the moment operates at half its capability. Its substitute would permit it to return to accredited capability of 760,000 barrels per day.
© Thomson Reuters 2019