(Adds Enbridge statement)
By Nia Williams
CALGARY, Alberta, April 25 (Reuters) - Canadian regulators
on Monday recommended the federal government approve Enbridge
Inc's ENB.TO plan to replace one of its major crude oil export
pipelines, but also imposed 89 conditions on the project to
enhance safety and environmental protection.
Calgary-based Enbridge plans to replace all segments of pipe
on the 1,031 mile (1,659km) Line 3 between Hardisty, Alberta,
and Superior, Wisconsin, by 2019, in what will be the company's
largest-ever project. The cross-border endeavor will cost more
than C$7.5 billion ($5.91 billion).
Monday's recommendation only applies to the Canadian section
of the line. U.S. regulators are in the process of dealing with
the southern leg.
In a statement Enbridge said it was pleased with the
regulator's announcement and was in the process of reviewing the
89 conditions.
Despite being a cross-border project, Line 3 will not
require a U.S. presidential permit, which ultimately scuppered
TransCanada Corp 's TRP.TO Keystone XL, because Enbridge is
restoring the pipeline to its original capacity.
President Barack Obama rejected Keystone XL last November
after a seven-year delay, and other proposed export pipelines
from Alberta's oil sands to the Canadian east and west coasts
are also facing additional regulatory scrutiny.
The Line 3 project will allow Enbridge to run the pipeline
at maximum capacity of 760,000 barrels per day. Currently
capacity is 390,000 bpd because of voluntary pressure
restrictions.
Dr Robert Steedman, chief environmental officer at the
National Energy Board, said a regulatory panel had concluded the
project was in the public interest and unlikely to cause
significant adverse environmental affects.
"The new pipeline will be built to modern standards and will
operate with improved safety and reliability," he said.
The NEB's conditions also required Enbridge to continue
consultation with landowners and aboriginal groups who live
along the pipeline's route. Steedman said the NEB always imposed
conditions when recommending projects and the 89 required of
Line 3 were not unusually high.
Federal Natural Resources Minister Jim Carr said in a
statement he would study the report and seek additional public
input before making a decision "in fall 2016."
Enbridge ships more than 2 million bpd of crude exports to
the United States, the bulk of Canada's total exports.
Chief Executive Al Monaco has previously said the project,
which involves replacing existing 34-inch diameter pipe which
36-inch diameter high-strength steel pipe, would not boost total
exports as the Enbridge system is in balance, meaning efforts to
lift crude flow could cause bottlenecks.
($1 = 1.2685 Canadian dollars)