Enbridge project faces key delay

Article Excerpt

ENBRIDGE INC. $46 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 2.0 billion; Market cap: $92.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 6.4%; TSINetwork Rating: Above Average; www.enbridge.com) wants to replace its aging Line 3 pipeline, which pumps crude from Alberta to Wisconsin. The project is set to double the current line’s capacity and will cost $9 billion. Line 3 runs through Minnesota, and regulators in that state recently approved the plan. However, the Minnesota Court of Appeals has now ruled that the project’s environmental impact statement was inadequate, particularly regarding the potential impact of an oil spill in Lake Superior. It’s unclear how long it would take Enbridge to complete a new environmental review. The company had hoped to finish the project in the second half of 2020, so the delay will add to the project’s cost. It’s also possible that regulators could reject an updated proposal. Enbridge is still a hold. hold…