Enbridge gains shipper support for pipeline replacement programme

Enbridge has announced that it has shipper support for a $7bn investment in their mainline pipeline system Line 3 that runs from Edmonton, Alberta, Canada to Superior, Wisconsin, US.

Operational since 1968, the 1,031-mile, 34in-diameter pipeline Line 3 is one of six crude oil pipelines that make up the Enbridge mainline system.

Due for completion by the second half of 2017, the Line 3 Replacement (L3R) programme includes all remaining segments of Line 3 between Hardisty, Alberta and Superior.

The company said that it will use the available high-strength steel and coating technology to replace all segments of the line with new pipe. Initial development work is underway in order to support the regulatory applications that will be submitted in late 2014.

Enbridge president and chief executive officer Al Monaco said that the Line 3 Replacement Program will provide the flexibility to accommodate the level of throughput the company expects.

"The increased reliability of throughput on our system will provide our customers with assured service to key markets," Monaco added.

Enbridge Pipelines will undertake the $4.2bn Canadian L3R programme between Hardisty and Gretna, while Enbridge Energy Partners will carry out the $2.6bn US L3R programme between Neche, North Dakota and Superior.

Enbridge Energy Partners president Mark Maki said: "The US Line 3 Replacement Program will provide a significant attractive investment opportunity for EEP, enhancing our distributable cash flow growth rate."