CALGARY, May 30, 2019 /PRNewswire/ - Enbridge Inc. (TSX:
ENB) (NYSE: ENB) (Enbridge or the Company) today addressed
statements made yesterday by the Michigan Attorney General and Governor about
our joint efforts with the State on the proposed construction of an
underground tunnel that would ultimately house a replacement of the
existing Line 5 pipelines across the Straits of Mackinac, which have always operated
safely.
In recent meetings and in a letter to the Governor, Enbridge has
reiterated its shared vision with Michigan of further reducing risk and how we
believe constructing a tunnel to house the Straits pipelines is the
most effective and timely way to remove the existing Line 5 while
ensuring the critical energy needs of Michiganders are met.
Enbridge has committed to construct the tunnel as quickly as
prudently possible and to advance a number of additional protective
measures while we construct the tunnel. Given the Attorney
General's opinion that the previous administration tunnel authority
is invalid, Enbridge engaged and has continued to engage the State
about alternatives to address that concern.
Discussions with the State along with additional commitments
from Enbridge mean we can get the tunnel under construction and
complete sooner than previously anticipated. Assuming we are
able to move through the permitting process without delay, we
believe the tunnel can be under construction in 2021 and in service
as soon as early 2024. As previously committed, operation of
the current Line 5 would cease immediately following the placement
into service of the replacement pipeline in the tunnel. Enbridge
has also committed to provide additional safety measures
surrounding its operation during that interim period while the
tunnel is being permitted and constructed.
Line 5 continues to be a critical piece of infrastructure. It
currently serves the propane needs of the Upper Peninsula and
Northern Michigan, providing
roughly 55 percent of the entire state's propane needs for heating
homes while supporting agriculture and manufacturing needs.
Michigan is also a net-importer of
transportation fuels and Line 5 provides feedstock not just to the
Detroit refinery but those in
neighboring states that are critical to meeting the state's energy
needs. These same refineries supply a large proportion of the
aviation fuel at the Detroit Metropolitan Airport, a vital
contributor to basic transportation and the state's economy.
According to the U.S. Department of Transportation, pipelines
are the safest way to move energy. It would take 2,150 tanker
trucks – 90 leaving the terminal every hour, 24 hours a day – or
more than 800 rail cars each day to deliver the amount of energy
carried by Line 5.
Enbridge takes its responsibility to deliver vital products to
Michigan communities and customers
seriously, and is prepared to invest $500
million to build this tunnel solution.
Line 5 is safe and critical to Michigan and we therefore continue to operate
it. As referenced in the attached backgrounder, independent
analysis commissioned by the State of
Michigan and the Pipeline and Hazardous Materials Safety
Administration have confirmed the safety of the existing pipeline.
This includes an independent scientific study in 2017 that
determined there are no feasible alternative routes for a new
pipeline, and no better alternative mode of transporting the energy
that Line 5 carries. Further, a State-commissioned report,
Alternatives Analysis for the Straits Pipelines, concluded
the risk of a release into the Great Lakes from a replacement
pipeline built within the proposed underground tunnel would be
"negligible" and "un-quantifiably low."
Notwithstanding the safety of Line 5, it is our view the tunnel
represents a practical approach to meeting the state's energy needs
while providing the people of Michigan with even greater protection of this
crossing to as near zero risk as humanly possible. Moreover,
Enbridge has undertaken numerous added measures that exceed
regulatory requirements.
Geo-technical activities in support of the 2019 work plan
necessary to preserve the 2021 construction start have commenced,
with increasing commitments to contractors ramping up leading into
the summer months. Enbridge is fully prepared to proceed with
the 2019 program, necessary permitting and construction of the
tunnel but it is awaiting the State's decision on supporting that
path forward.
Line 5 was originally built to serve the energy needs of
Michigan in a safe and reliable
way and that objective remains today. We look forward to further
collaboration with the state to ensure an orderly and diligent
permitting process so that we can continue with design and
construction planning for the Straits tunnel.
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have
been included in this news release to provide information about the
Company and its subsidiaries and affiliates, including management's
assessment of Enbridge and its subsidiaries' future plans and
operations. This information may not be appropriate for other
purposes. Forward-looking statements are typically identified by
words such as ''anticipate'', ''expect'', ''project'',
''estimate'', ''forecast'', ''plan'', ''intend'', ''target'',
''believe'', "likely" and similar words suggesting future outcomes
or statements regarding an outlook. Forward-looking information or
statements included or incorporated by reference in this document
include, but are not limited to, statements with respect to the
proposed underground tunnel to house a replacement of the existing
Line 5 pipelines ("Line 5"), including the benefits, risks, costs
and timing thereof, the receipt of applicable permits and
governmental, regulatory and other approvals, and other related
matters such as additional protective measures and
commitments.
Although Enbridge believes these forward-looking statements
are reasonable based on the information available on the date such
statements are made and processes used to prepare the information,
such statements are not guarantees of future performance and
readers are cautioned against placing undue reliance on
forward-looking statements. By their nature, these statements
involve a variety of assumptions, known and unknown risks and
uncertainties and other factors, which may cause actual results,
levels of activity and achievements to differ materially from those
expressed or implied by such statements. Assumptions regarding the
expected supply of and demand for crude oil, natural gas, NGL and
renewable energy, and the prices of these commodities, are material
to and underlie all forward-looking statements, as they may impact
current and future levels of demand for the Company's services.
Similarly, exchange rates, inflation and interest rates impact the
economies and business environments in which the Company operates
and may impact levels of demand for the Company's services and cost
of inputs, and are therefore inherent in all forward-looking
statements. Due to the interdependencies and correlation of these
macroeconomic factors, the impact of any one assumption on a
forward-looking statement cannot be determined with certainty. The
most relevant assumptions associated with forward-looking
statements with respect to projects such as the replacement of Line
5, including estimated completion dates and expected capital
expenditures, include the following: the impact of customer,
government and regulatory approvals on construction and in-service
schedules and cost recovery regimes; the availability and price of
labour and construction materials; the effects of inflation and
foreign exchange rates on labour and material costs; the effects of
interest rates on borrowing costs; and the impact of
weather.
Enbridge's forward-looking statements are subject to risks
and uncertainties, including, but not limited to those risks and
uncertainties discussed in this news release and in the Company's
other filings with Canadian and United
States securities regulators. The impact of any one risk,
uncertainty or factor on a particular forward-looking statement is
not determinable with certainty as these are interdependent and
Enbridge's future course of action depends on management's
assessment of all information available at the relevant time.
Except to the extent required by applicable law, Enbridge assumes
no obligation to publicly update or revise any forward-looking
statements made in this news release or otherwise, whether as a
result of new information, future events or otherwise. All
subsequent forward-looking statements, whether written or oral,
attributable to Enbridge or persons acting on the Company's behalf,
are expressly qualified in their entirety by these cautionary
statements.
About Enbridge Inc.
Enbridge Inc. is
North America's premier energy
infrastructure company with strategic business platforms that
include an extensive network of crude oil, liquids and natural gas
pipelines, regulated natural gas distribution utilities and
renewable power generation. The Company safely delivers an average
of 2.9 million barrels of crude oil each day through its Mainline
and Express Pipeline; accounts for approximately 62% of U.S.-bound
Canadian crude oil exports; and moves approximately 18% of all
natural gas consumed in the U.S., serving key supply basins and
demand markets. The Company's regulated utilities serve
approximately 3.7 million retail customers in Ontario, Quebec, and New
Brunswick. Enbridge also generates approximately 1,600 MW of
net renewable energy power in North
America and Europe. The
Company's common shares trade on the Toronto and New
York stock exchanges under the symbol ENB.
Life takes energy and Enbridge exists to fuel people's
quality of life. For more information, visit
www.enbridge.com.
LINE 5 BACKGROUNDER AND TIMELINE
Line 5 Critical to Michigan's
Energy Needs
- Line 5 continues to be a critical source of 540,000 barrels per
day of propane and crude oil supply for Michigan and surrounding areas that make up
the regional supply network for the State, producing transportation
fuels and consumer goods, ranging from computers to clothing and
cellphones.
- Line 5 serves an estimated 55 percent of the State's needs
including approximately 65 percent of the propane used in the Upper
Peninsula and Northern Michigan,
for which no viable alternatives exist.
- Line 5 supplies Michigan and
regional refineries that provide Michigan with various fuels that Michigan residents rely on in their day-to-day
lives. Refineries served by Line 5 supply a large percentage of the
aviation fuel at Detroit's
Metropolitan Airport, an important contributor to the State's
economy.
- According to the U.S. Department of Transportation, pipelines
are the safest way to move energy. It would take 2,150 tanker
trucks – 90 leaving the terminal every hour, 24 hours a day – or
more than 800 rail cars each day to deliver the amount of energy
carried on Line 5.
Line 5 Can Operate Safely for Decades
- There has never been a leak at the Straits and a 2017
hydro-test of the Straits pipelines involving Michigan agencies, The Pipeline Hazardous
Materials Safety Administration (PHMSA) the Environmental
Protection Agency and the U.S. Coast Guard validated their
continuing fitness. [LINK TO REPORT]
- Safety measures include the use of an extra heavy-wall
thickness pipe; a robust cathodic protection system to prevent
external corrosion; anchor devices to counter the effects of water
currents; operation of the pipes at very low pressure –
approximately 10 percent of tested capability and less than 25
percent of maximum operating pressure – in order to provide a
safety factor well above that typical of pipelines; and regular
inspections such as sophisticated in-line inspection tools, divers,
and remotely-operated vehicles to confirm the integrity of the
crossing.
- In 2016, experts contracted by the Pipeline Hazardous Materials
Safety Administration (PHMSA) reviewed 20 years of Line 5
inspection data. [LINK TO REPORT] They found that no locations
required additional attention in the Straits of Mackinac and that our current inspection
frequency is appropriate.
Tunnel Makes Safe Pipeline Even Safer
- The concrete-walled tunnel is to be placed approximately 100
feet below the lake bed, reducing the risk of a spill in the
Straits to zero. Enbridge would pay for the construction and
operation of the tunnel.
- A State-commissioned report, Alternatives Analysis for the
Straits Pipelines, [LINK TO REPORT] concluded the risk of a
release into the Great Lakes from a replacement pipeline built
within such an underground tunnel would be "negligible" and
"un-quantifiably low."
Timeline
July 14, 2015
The
Michigan Petroleum Pipeline Task Force delivers its report to the
State which recommends the creation of the Michigan Pipeline Safety
Advisory Board (PSAB).
September 3,
2015
Enbridge signs agreement to re-affirm its
previous commitments to continue to not ship heavy crude through
Line 5.
June 18, 2017
Enbridge
completes a hydrotest of the Straits section of Line 5.
- The test, conducted to the same standards as when the Line was
first built, confirms its continuing fitness.
October 26, 2017
The
independent Alternatives Analysis for the Straits Pipelines Report
[LINK TO REPORT], commissioned by the PSAB, is released.
- The Report's findings indicate there is no feasible alternative
route for a new pipeline, and no better alternative mode of
transporting the energy that Line 5 carries.
November 27, 2017
First
Agreement with the State of
Michigan.
- Enbridge agrees to prepare a report assessing the replacement
of the dual pipelines.
- Also agrees to six other actions for protecting Michigan's water, including safety
enhancements at other Line 5 water crossings, and replacing the
Line 5 segment at the St. Clair River with a horizontal directional
drill below the riverbed.
June 14, 2018
Enbridge
releases a report on the feasibility of a Straits tunnel project.
[LINK TO REPORT]
- Finds that a tunnel is feasible.
- Also in June Enbridge releases several additional reports
including on these topics:
-
- Prevention of anchor strikes;
- Assessing new technology for leak detection.
October 3, 2018
Second
Agreement with the State of
Michigan.
- Enbridge agrees to explore future agreements to construct an
underground tunnel to replace the Straits section of Line 5.
December 19, 2018
Third
Agreement with the State of
Michigan and Tunnel Agreement.
- Enbridge agrees to construct a tunnel under the lakebed in the
Straits to contain a replacement section of Line 5.
May 21, 2019
On-shore
rock and soil sampling work begins on the South shore of the
Straits.
June 2019
Underwater
rock and soil sampling work begins.
July 2019
Deep water
rock and soil sampling work begins.
2020
Concurrent contracting with tunnel
design/construction company and completion of final tunnel
design.
2020
Procurement and construction of unique tunnel
boring machine.
2020-2021
18 to 24 months anticipated to obtain all
necessary federal, state and local permits.
Fourth quarter 2021
Boring and construction of the
tunnel begins.
2021-2023
Approximately two years to bore and
construct the tunnel at an anticipated average of 40 feet per
day
First half 2024
Testing and commissioning of new Line
5 crossing at the Straits contained within the new tunnel.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media
Michael
Barnes
Toll Free: (888) 992-0997
Email: media@enbridge.com
Investment Community
Jonathan
Gould
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com
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SOURCE Enbridge Inc.