Good news for Canadian oil — more pipeline capacity is now available as Enbridge’s Line 3 pipeline came online Sunday.
The $5.3-billion Canadian portion runs 1,070 kilometres from Hardisty, Alta. to Gretna, Man., near the U.S. border. The pipeline then runs through to Superior, Wis.
The US$2.9-billion part of the project to the Midwest, which would add 370,000 barrels of daily export capacity, continues to go through regulatory hurdles. Largely because of this, Alberta decided to extend curtailment by a year, which was only supposed to be in place until the end of December.
Looking ahead, regulators in Minnesota are due to submit a revised environmental impact statement for the project on Dec. 9, according to Enbridge’s third-quarter earnings statement posted last month.
When the project is completed, the pipeline will be able to transport 760,000 barrels per day.
The Line 3 Replacement Program is the largest project in Enbridge's history.
Alberta Energy Minister Sonya Savage issued a statement Monday.
“This is an important milestone for our province. This pipeline replacement checks a lot of boxes: it enhances safety, has created thousands of jobs on both sides of the border, and will continue to provide critical tax revenues over its lifespan in both Canada and the U.S. But we still need more. Much more," she said.
“We will continue to fight for market access; but in the meantime, we need to find ways to maximize and optimize our existing pipelines."