From Zacks:
ENB
recently decided to replace its 65-year old crude pipes of Line 5 under
the Straits of Mackinac. The decision has been backed by the Michigan
government. The company will install a multi-use utility tunnel that is
to be drilled through the bedrock of the channel and decommission the
old pipes. The cost of the project is estimated in the range of
$350-$500 million.
The
project involves extensive engineering works and is expected to take
7-10 years for completion. Until then, around 23 million gallons of
natural gas liquids and oil, which are used to make propane, will be
transported through the lines daily. The cost of designing, building and
maintaining the tunnel will be met by the company.
This
decision is in line with the recent demands from environmental
activists, who were wary of the oil line’s present state, fearing that
it could lead to a potential spill. In April, the pipeline suffered
damage from a ship’s anchor. Moreover, protective coating of the pipes
is not intact at several places. Hence, the project further ensures
safety of the pipeline as well as the water body. It will enable the
company to deliver uninterrupted energy sources to the residents of the
state.
The
independent state agency of Michigan, Mackinac Bridge Authority (which
controls operations of the Mackinac Bridge across the Straits of
Mackinac) will help Enbridge to receive necessary government permits for
the project. Once the project is completed, the agency will own the
tunnel and lease it to Enbridge for pipeline operations. Going forward,
the agency may strike similar deals with providers of electric and
telecommunication cables.
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