A project worth $9-billion to restore Line 3 pipeline leaves the Canadian oil and gas industry in anticipation of a future rise in price and profits. The upgrade is expected to substantially increase export capacity into the United States with 375,000 additional barrels per day.

Experts are optimistic about the approval and the effects it will have on sustaining Canada’s competitiveness in the industry. Moreover, the project will help eliminate congestion created in the pipeline bottleneck that had forced Canadian oil producer to accept a high discount for their product compared to the U.S. benchmark.

Line 3 improvement is expected to facilitate increased product outflow to the U.S. Midwest, largest importer of Canadian crude oil, as well as the rest of Canada thus supporting existing markets and helping the growth of new ones.

One of the biggest challenges that may delay the construction process is civil protests which are driven by environmental concerns. As to avoid an unpleasant outcome, negotiations currently take place between Enbridge and the Fond Du Lac Band. If no agreement is reached, Enbridge will have to re-route a piece of the pipeline that comes across Band’s land.


What to expect?

To Alberta’s refiners, business and labour groups the project means more jobs, $2.5 billion investment in the state and less crude traveling by rail.

Line 3 is critical in supplying enough crude oil across the country to produce fuel and asphalt.

Predictions are that oilsands production will rise by 1.55 million bpd by 2035, states the Canadian Association of Petroleum Producers.

Plainsman Manufacturing as a manufacturer and distributor of products for oilfield production and pipeline maintenance is closely tied to projects such as Line 3 pipeline upgrade. From projects of national importance to smaller scale ones, plainsman is committed to providing the highest standards in manufacturing and engineering.  Safety and quality are a priority for us. To get more information about our products and services give us a call today at 1-877-448-0586 and our team of experts will be happy to assist you.