Newspaper article The Canadian Press

Enbridge Hikes Line 3 Cost Estimate, Raises $400 Million in New Financing

Newspaper article The Canadian Press

Enbridge Hikes Line 3 Cost Estimate, Raises $400 Million in New Financing

Article excerpt

Enbridge pegs L3R costs at $7.5 billion

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CALGARY - Enbridge Inc. (TSX:ENB) says the cost of overhauling its Line 3 oil pipeline between Alberta and Wisconsin is ringing in at $7.5 billion, about seven per cent higher than when the massive project was first announced in March.

The Calgary-based pipeline giant says the increase relates to the Canadian side of the pipeline.

Also Wednesday, Enbridge said it's raising $400 million in financing by selling 7.86 million of its common shares through an agreement with RBC Capital markets and Credit Suisse.

Line 3 is one of six arteries that make up Enbridge's Canadian mainline, a key piece of infrastructure that moves Alberta crude east.

The Line 3 replacement project is the largest in Enbridge's history. The company decided replacing the 46-year-old line in its entirety using improved steel and coating was a more cost-effective option than maintaining it in the long term.

Shippers have agreed to pay a toll surcharge over a 15-year span, which will be adjusted to reflect 75 per cent of the cost increase. …

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