(Bloomberg) -- Enbridge Inc. is adding more pipeline capacity for Canadian oil producers this year and sees progress on the crucial C$9 billion ($6.8 billion) replacement and expansion of its Line 3 crude-oil pipeline.
Regulators in the Minnesota are due to submit a revised environmental impact statement for the project by Dec. 9, and state permitting agencies are advancing their work as much as possible in parallel with that process, Calgary-based Enbridge said in its third-quarter earnings statement on Friday. The company reiterated that, depending on the final in-service date, the cost may exceed its current estimates, though it also said it doesn’t anticipate any material impacts.
- Enbridge’s update on Line 3, a project that has been delayed for over a year by regulatory hurdles, may provide some grounds for optimism for Canadian oil producers. They’ve been counting on the conduit to help clear a glut of crude and allow Alberta to end its mandatory output cuts.
- North America’s largest pipeline company also offered hope for producers with the guidance that it’s adding about 100,000 barrels of daily oil-shipping capacity by optimizing its current system. That’s up from a previous forecast of about 85,000 barrels.
- The company also showed investors it’s on track from an earnings perspective. Third-quarter profit, excluding some items, was 56 Canadian cents a share, topping analysts’ 51-cent average estimate. Enbridge also said it expects its distributable cash flow for the year to exceed the midpoint of its guidance range.
- Enbridge shares were 0.3% lower at C$48.50 at 9:24 a.m. in early trading in Toronto. The shares had gained 14% this year through Thursday, compared with a 10% gain for the S&P/TSX energy index.
- Click here for more on Enbridge’s third-quarter results.
(Updates with share price market reaction section)
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