ENBRIDGE RAISES LINE 3 REPLACEMENT COST ESTIMATE BY $1B

Enbridge Inc on Friday forecast higher costs for its long-contested pipeline replacement project, citing regulatory and permitting delays, winter construction and COVID-19 protocols, among other reasons. Line 3, built in the 1960s, ships crude edmonton to U.S. Midwest refiners, and carries less oil than it was designed for because of age and corrosion. replacing the pipeline would allow enbridge to roughly double its capacity to 760,000 barrels per day. While the Canadian portion is complete, enbridge has run into repeated obstacles in Minnesota, where reviews have lasted for about five years. enbridge now estimates capital costs Line 3, including the Canadian segment already in service, at $9.3 billion, up from $8.2 billion. enbridge is targeting to put the pipeline in service in the fourth-quarter.