Increased scrutiny could raise costs for Enbridge project, Moody's says

|About: Enbridge Inc. (ENB)|By:, SA News Editor

Enbridge’s (ENB) $7B plan to replace its Line 3 oil pipeline so it can pump more crude through it "will face increased public, regulatory and political scrutiny,” potentially leading to higher costs and delays, Moody's says.

The project - the largest in ENB's history - is less risky than Keystone XL and does not affect the credit ratings of ENB or its U.S. affiliate, Energy Energy Partners (EEP), but it carries more execution risk than other company projects.

A flashpoint is whether the replacement will require a Keystone-style presidential permit; ENB says it doesn't because the segment at the U.S.-Canada border will narrow to a 34-inch pipeline that's allowed under an existing presidential permit, while opponents decry "accounting trickery."