Enbridge signs deal for Line 3 pipeline placement in Canada

North American energy infrastructure firm Enbridge has signed an agreement with shippers to place the Line 3 replacement pipeline into service in Canada.

The company said that it will file a tariff with the Canadian energy regulator for a temporary surcharge with a proposed effective date of 1 December.

Claimed to be the largest project in Enbridge’s history, the Line 3 replacement programme features a C$5.3bn ($3.96bn) Canadian component and a $2.9bn American component.

It expands on the former Line 3 segment replacement programme and will feature the entire remaining segments of Line 3 between Hardisty, Alberta, and Superior, Wisconsin.

The programme will fully replace 1,660km of Line 3 with new pipeline and related facilities on either side of the Canada-US international border.

It will incorporate advanced pipeline technology, as well as offer the required incremental capacity to support Canadian crude oil production growth and refinery demand in the US and Canada.

The Canadian portion of the pipeline is expected to be placed into service by the end of this year.

After completion of the US segment of the pipeline, the tariff filed with the Canada energy regulator will be superseded by the full negotiated Line 3 tariff.

Enbridge is awaiting final permitting to start construction on the majority of the American portion of the project.

As of April, the company installed all of the in-ground piping along the 1,070km Canadian right-of-way (Hardisty, Alberta, to Gretna, Manitoba).

The Wisconsin segment of the project entered service last year. By November, Enbridge seeks to secure certification for the remaining Minnesota permits to begin construction.

The company said that it will concurrently start construction in Minnesota and North Dakota after securing the required permits and approvals. The remaining American portion of the project is anticipated to enter service late next year.