Enbridge to start Line 3 construction despite lack of key U.S. approval

CALGARY – Enbridge (TSX:ENB) says it will begin phased construction of the Canadian portion of its Line 3 pipeline project on Aug. 1, even though the American side is still awaiting regulatory approval.

Spokeswoman Suzanne Wilton says about 600 contractor workers and up to 200 Enbridge staff are set to begin clearing land and installing pipe for the line which runs from central Alberta to Manitoba.

About one-third of the Canadian route is expected to be completed this summer with the rest to be built in 2018 and 2019.

The U.S. section of the pipeline still requires approval in Minnesota, where it faces determined opposition.

The $8.4-billion project to replace the aging 1,660-kilometre Line 3 with new pipe is expected to restore 375,000 barrels per day of Canadian crude oil delivery capacity to Superior, Wis.