En­bridge says costs of Line 3 ris­ing, cites reg­u­la­tory de­lays, route changes

The Guardian (Charlottetown) - - BUSINESS -

CAL­GARY – En­bridge Inc. (TSX:ENB) says the cost of its Line 3 re­place­ment project has risen nine per cent from its orig­i­nal es­ti­mate when it was sanc­tioned in 2014.

The com­pany now es­ti­mates it will cost $5.3 bil­lion for the por­tion in Canada and US$2.9 bil­lion in the United States to re­place the pipe­line that runs from Hardisty, Alta., to Su­pe­rior, Wisc. It at­trib­uted the higher cost to de­lays in the reg­u­la­tory process and route mod­i­fi­ca­tions, among other changes. How­ever, the com­pany said the im­pact of the in­creased costs on project re­turns are ex­pected to be off­set by lower op­er­at­ing costs and a strong U.S. dol­lar. En­bridge said it ex­pects to start con­struc­tion in Canada this sum­mer and have the pipe­line in ser­vice in the sec­ond half of 2019. The an­nounce­ment came as En­bridge re­ported a sec­ondquar­ter profit of $919 mil­lion or 56 cents per di­luted share com­pared with a profit of $301 mil­lion or 33 cents per di­luted share a year ago when the com­pany had fewer shares out­stand­ing. Ad­justed earn­ings for the quar­ter amounted to $662 mil­lion or 41 cents per share, up from $456 mil­lion of 50 cents per share a year ago.

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