UPDATE 2-Canada regulators green-light Enbridge crude Line 9

(Adds Suncor comments)
By Nia Williams
CALGARY, Alberta, Sept 30 (Reuters) - Canadian regulators
approved the hydrotest results of Enbridge Inc's ENB.TO Line 9
crude oil pipeline on Wednesday, clearing the way for the
delayed 300,000 barrel-per-day route to the east of the country
to start operating.
The newly reversed Line 9 will ship mainly light inland
crude from Sarnia, Ontario, to Montreal, Quebec. It previously
flowed in the opposite direction, taking imported crude to
Ontario.
The line, originally expected to start up in late 2014, was
held up after the National Energy Board ordered hydrostatic
tests at three locations along the line in June.
Prior to that, regulators had asked for additional data on
shut-off valve placements at major water crossings.
{ID:nL1N0VG160]
The NEB said on Wednesday there were no further
pre-operation requirements on Line 9.
"The successful hydrotests confirm the NEB's confidence in
the integrity of the pipeline and its confidence that the line
can safely be returned to operation," the regulator said in a
statement.
The Line 9 approval is a rare bright spot for backers of
Canadian pipeline projects, which include TransCanada Corp's
TRP.TO Keystone XL and Enbridge's Northern Gateway.
These projects have run into fierce environmental
opposition, and last week Democratic U.S. presidential candidate
Hillary Clinton said she opposed Keystone XL. ID:nL1N11S2J3
The approval was welcomed by the Canadian Association of
Petroleum Producers and Suncor Energy SU.TO , which owns a
refinery in Quebec and is one of Line 9's biggest customers.
"We have long said the pipeline is critical in terms of
improving access to inland crude and providing supply options to
the Montreal refinery, which in turn enhances its
competitiveness," said Suncor spokeswoman Sneh Seetal.
Valero Energy Corp (NYSE:VLO) VLO.N also has a refinery in Quebec and
will likely benefit from being able to replace imported crude
with cheaper inland barrels.
Once the pipeline becomes operational the NEB has imposed
conditions including biweekly patrols, quarterly integrity
testing and an in-line inspection within the first year of
operation.
Enbridge is also required to limit the pressure of the
pipeline for its first year of operation. It was not immediately
clear whether pressure restrictions would affect the capacity of
the pipeline and the company does not yet have an expected
in-service date for the pipeline.
"There are still some technical preparations that are
required and line-fill is not an exactly timed process, so we
will not speculate at this time on a specific date for return to
full service," White said.