The Canadian Press - ONLINE EDITION

Enbridge hikes Line 3 cost estimate, raises $400 million in new financing

  • Print

CALGARY - Enbridge Inc. (TSX:ENB) says the cost of overhauling its Line 3 oil pipeline between Alberta and Wisconsin is ringing in at $7.5 billion, about seven per cent higher than when the massive project was first announced in March.

The Calgary-based pipeline giant says the increase relates to the Canadian side of the pipeline.

Also Wednesday, Enbridge said it's raising $400 million in financing by selling 7.86 million of its common shares through an agreement with RBC Capital markets and Credit Suisse.

Line 3 is one of six arteries that make up Enbridge's Canadian mainline, a key piece of infrastructure that moves Alberta crude east.

The Line 3 replacement project is the largest in Enbridge's history. The company decided replacing the 46-year-old line in its entirety using improved steel and coating was a more cost-effective option than maintaining it in the long term.

Shippers have agreed to pay a toll surcharge over a 15-year span, which will be adjusted to reflect 75 per cent of the cost increase.

The upgrade will enable the line to pump a maximum of 760,000 barrels per day, up from the 390,000 that it is currently able to move, according to Enbridge's own engineering analysis. The revamped Line 3 is expected to be up and running in the latter half of 2017.

The announcement came a day after the federal government gave the green light to Enbridge's controversial Northern Gateway pipeline to the West Coast, provided 209 conditions are met.

However, Enbridge says it has a lot of work to do before it decides to break ground on that project. Northern Gateway faces a litany of legal challenges and staunch opposition in British Columbia.

Speaking to reporters on Tuesday, CEO Al Monaco touted the billions Enbridge is investing in other projects that will connect oilsands crude to eastern and southern markets.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Stuart Murray announces musical RightsFest for CMHR opening weekend

View more like this

Photo Store Gallery

  • June 24, 2012 - 120624  -  Amusement riders on the last day of The Ex Sunday June 24, 2012.    John Woods / Winnipeg Free Press
  • A pelican comes in for a landing Wednesday afternoon on the Red River at Lockport, Manitoba - Standup photo- June 27, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What should the city do with the 102-year-old Arlington Street bridge?

View Results

View Related Story

Ads by Google