Enbridge has forecasted higher costs for its Line 3 replacement project citing regulatory and permitting delays, winter construction, and COVID-19 protocols, among other reasons.
The pipeline operator said it estimates capital costs for the Line 3 replacement project, including the Canadian segment already in service, to be $9.3 billion from C$8.2 billion CDN.
The Line 3 replacement project is in the process of doubling its capacity, which will allow it to deliver about 760,000 bpd of crude from Alberta to Superior, Wisc., by the end of this year.
The company reported a 79% jump in fourth-quarter profit, as the pipeline operator shipped higher volumes of crude on its liquids system on the back of a price recovery.
Net income attributable to common shareholders rose to $1.78 billion CDN, or 88 Canadian cents per share, in the quarter ended Dec. 31, from $990 million CDN, or 49 Canadian cents per share, in the third quarter. 29dk2902l