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

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."

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Comments (4)
  • Randy W
    , contributor
    Comments (292) | Send Message
    Let me guess. The "presidential permit" for the border crossing of up to a 34" pipeline was not approved by our current office-holder. What's wrong for our country to build pipeline infrastructure?
    5 Mar 2014, 05:17 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (708) | Send Message
    Obama will only allow 1 'thing' to cross our borders and it ant oil.
    5 Mar 2014, 06:00 PM Reply Like
  • Pablomike
    , contributor
    Comments (4905) | Send Message
    Who could possibly oppose replacing a 50-60 year old pipe with one??? No let's just wait until it leaks and there is a monumental environmental disaster.
    5 Mar 2014, 08:04 PM Reply Like
  • vireoman
    , contributor
    Comments (1269) | Send Message
    Replacement of the pipes will reportedly allow twice the flow of Canadian oil-sands to the US. Some are of the opinion that of all the various forms of carbon-based energy available, oil-sands are right up there with Appalachian coal as ones that should definitely remain in the ground. They're right, of course, although I'm not sure that fighting pipelines is the right way to fight this battle.
    5 Mar 2014, 11:51 PM Reply Like
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