Enbridge Puts Final Cost Estimate for Pipeline Overhaul

Enbridge Inc. (ENB, ENB.T) and Enbridge Energy Partners L.P. (EEP) provided a final cost estimate of $7.5 billion for their mainline replacement program.

The project includes the replacement of pipe in Enbridge's Canadian and U.S. mainline system running from Edmonton, Alberta, to Superior, Wis., and is the largest project in Enbridge's history. The company in March estimated the project at about $7 billion.

Enbridge reached an agreement with RBC Capital Markets and Credit Suisse to issue 7.86 million shares at 50.90 Canadian dollars each, aiming to raise gross proceeds of about 400 million Canadian dollars ($369 million), to support additional funding required for its capital spending program.

The Canadian portion of the mainline replacement program cost is estimated at roughly 4.9 billion Canadian dollars. The U.S. portion of the program is estimated at about US$2.6 billion.

"The final cost estimate for the Line 3 Replacement Program brings our enterprise wide growth capital program to $42 billion to be in service by 2017," Enbridge Chief Financial Officer J. Richard Bird said.

Separately Mr. Bird also announced plans to retire by year's end, when the post will be split into two roles: chief financial officer and chief development officer.

Enbridge plans to provide more details in a conference call Thursday at 9 a.m. eastern time.

Write to Tess Stynes at [e-mail]

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