Line 3 Replacement Program and Northern Gateway Decision Statement
November 29, 2016
Enbridge today received the Canadian Federal Government’s decision on our Line 3 Replacement and Northern Gateway Projects.
We’re pleased by the Federal Government’s decision to approve the Line 3 Replacement Program, an essential maintenance project that will ensure the safe and reliable delivery of Canada’s energy resources to market.
The Line 3 Replacement Program is the largest project in Enbridge’s history at approximately $7.5 billion, and will enhance the safety of the line and restore its original capacity of 760,000 barrels a day.
We have strong support for the project from our communities along the route, including Indigenous communities. Since the project began in 2014, we have undertaken the largest engagement program in our history, including engaging with 150 Indigenous communities from as far away as 300 kilometres from the right of way.
Enbridge is committed to ensuring that communities along the pipeline route realize the significant economic benefits that will come with the project, including jobs, Indigenous business opportunities and training programs in all three Prairie Provinces.
Replacing Line 3 is the most timely and reliable solution for transporting Western Canadian crude oil to the Chicago, U.S. Gulf Coast, Eastern U.S. and Canadian refinery markets.
This approval today is an important milestone and brings us one step closer to making this important project a reality.
The anticipated in-service date for this project is 2019, pending U.S. regulatory approvals.
Enbridge is disappointed the Federal Government has directed the NEB to dismiss the Northern Gateway application. This was an important project to ensure Canada gets its resources to international markets, where Canadian producers can receive the best returns, benefiting our provincial and national economies.
Northern Gateway also represented an unprecedented partnership with Indigenous people. The 31 Indigenous communities who had a one-third ownership in Northern Gateway stood to realize $2 billion in benefits to their communities and would have played an important stewardship role in the project.
In advancing Northern Gateway, we relied on a process that saw the Federal Government approve the project. The Federal Court of Appeal then found that the Federal Government failed to properly consult Indigenous communities, but affirmed our engagement on the project.
Given today’s decision, we’ll need to assess our alternatives which we’ll do in consultation with our partners, including our Aboriginal Equity Partners.