Alberta will not see the anticipated relief of another pipeline this fall, after an announcement by Enbridge that it is not expecting its Line 3 replacement to be operating until the second half of 2020.
The project is supposed to replace an existing 34-inch diameter pipeline—with one that is two inches larger in diameter—from Hardisty, Alta., to Gretna, Man., then into North Dakota and Minnesota.
Enbridge previously estimated Line 3 would be in service by the end of this year, but announced over the weekend its timeline had changed due to estimations from the State of Minnesota on when it could expect remaining permits to be approved.
The Calgary-based company said it was told state permits and stakeholder input would be completed by November 2019, while federal permits could take another month or two.
“We are pleased to have a firm schedule from the State on the timing of the remaining permits,” Enbridge wrote in a news release.
“We support a robust and transparent permitting process that includes opportunity for input from the public, and we will continue to work closely with State officials during this process.”
Alberta has previously said it is relying on the pipeline to increase market access for the province’s struggling energy sector.
Tim Pickering, president of Auspice Capital Advisors, equated the situation to “having a bridge out on a highway that you need to cross that you can’t get across.”
“It really leaves 2019 hanging. We don't really have a positive we were looking for.”
According to an expert, the Line 3 delay could cause major problems for Alberta by widening the price differential between Canadian and U.S. product.
Both Pickering and Richard Dixon, an economist at Athabasca Univeristy, estimated the differential could move from $12 on Friday to as much as $18 on Monday.
However, they believe there is little the province can do about it.
“Is this outside of Alberta’s control? Very much so,” Dixon told CTV News.
“(Minnesota is) coming out of the midterm elections and a strong showing by the Democrats who have very much been a part of the anti-pipeline group at times.”
Last month, Minnesota Gov. Tim Walz announced that his commerce department would petition the state Public Utility Commission to reconsider its approval of Line 3 through Minnesota, prolonging a process begun by his predecessor.
Previous challenges by the former governor were set aside by the commission.
While Dixon believes the state could continue delaying Line 3, Enbridge said it is confident the project will continue soon.
The Line 3 replacement project is Enbridge’s largest to date.
With files from Timm Bruch and The Canadian Press
