Army Corps Starts Enbridge Line 5 Tunnel Review

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Once a 30-day public comment period ends later this summer, the U.S. Army Corps of Engineers said it would decide on granting Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) a permit to build a tunnel for its Line 5 oil pipeline in Michigan.

Line 5 is part of a broader network running from Alberta to the Lower 48 states. The pipeline stretches some 645 miles from Duluth, Wisconsin, to Sarnia in Ontario, Canada. It has a design capacity of 540,000 barrels per day of light crude oil and natural gas liquids.

Enbridge wants to build a 4-mile tunnel over the stretch of the pipeline that runs through the Straits of Mackinac separating both Michigan peninsulas. The Army Corps of Engineers said Friday it published a draft environmental impact statement in the Federal Register, kicking off a 30-day public comment period. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Project Database can learn more by viewing the project report.

"Public participation is an important part of the National Environmental Policy Act (NEPA) process to ensure a thorough environmental analysis, and an effective, consistent and well-informed decision," Lt. Col. Wallace Bandeff, the district commander for the Army Corps in Detroit, said Friday.

A record of decision is expected by the fall.

Public sentiment on Enbridge soured in 2010 after another section of the broader network, Line 6b, burst open in southern Michigan, leading to one of the largest inland oil spills in U.S. history. Carrying heavy Canadian crude, the 30,000-barrel release took five years to clean up.

In 2017, state regulators said they were concerned by gaps in the protective coating on parts of Line 5 in the strait, at least one of which was caused when Enbridge installed new supportive anchors.

A year later, a tugboat anchor was dragged over Line 5, causing damage to the pipelines and severing underwater power cables. State legislators had previously estimated a spill in the strait would soil some 700 miles of coastline.

President Donald Trump in one of his first acts of office declared a national energy emergency, stating that insufficient refining capacity, transportation and production posed an extraordinary threat to the nation's economy and security. In April, the Army Corps determined Line 5 fell under the order's guidelines, fast-tracking the approval process.

Tribal leaders in Michigan complained in a letter to Enbridge the executive order effectively shut them out of the approval process. Michigan Gov. Gretchen Whitmer (D) had earlier moved to revoke a permit for Line 5, citing a history of risks to the Great Lakes.

While Trump's executive order helped facilitate the permitting process for Line 5, his trade agenda had threatened to upend energy flows in North America. Much of the U.S. refining sector is tailored to process the heavier type of crude oil found in Canada, which accounts for 60% of total U.S. oil imports.

Trump had threatened to put a 25% tariff on Canadian energy, but later reversed course by offering an exemption. The threat, however, and subsequent political row caused long-time Prime Minister Justin Trudeau to resign.

His replacement, Mark Carney, is scheduled to meet with Trump later this week. Greg Ebel, the head of Enbridge, added his name to a letter to Carney asking to prioritize the Canadian energy sector.

"At a time when economic resilience and sovereignty are more critical than ever, Canada has the resources, talent, and innovation to lead the world," he said.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).