CALGARY – The National Energy Board says it has approved repair work on an Enbridge Inc. pipeline that is the only outside link for oil production in Norman Wells, NWT.
Enbridge had shut down Line 21, also known as the Norman Wells pipeline, in November 2016 over concerns of slop instability near a crossing of the Mackenzie River.
The closure of the pipeline led Imperial Oil to shut down production at the aging Norman Wells operation. About a month before the pipeline was shut down, it had put the oil operations up for sale.
Repairs to the line, which will include replacing a 2.5-kilometre segment while leaving the old pipeline in place, are estimated to cost $53 million.
Enbridge said it was pleased with the approval and is reviewing the NEB’s conditions.
Gross production at Norman Wells averaged 11,000 barrels a day in 2015, while the 870-kilometre Line 21 has a capacity of 50,000 barrels of oil per day.
Companies in this story (TSX:ENB, TSX:IMO)