Make earnings with no risk
Automated AI-driven system makes the trades, you earn the money
Join now
News

Enbridge’s Line 5 Replacement Project Receives Permit Approval in Michigan

0

Michigan state regulators have granted Enbridge the necessary permit to proceed with its plan to construct a tunnel beneath the Straits of Mackinac. The tunnel will house a replacement section for the existing Line 5 pipeline. This approval comes in the face of opposition from Governor Gretchen Whitmer and State Attorney General Dana Nessel, who have been working to shut down the 540,000-barrel-per-day mixed-products pipeline.

The decision by the Michigan Public Service Commission (MPSC) is based on their assessment of the public need to replace the current four-mile exposed section of the pipeline at the bottom of the straits. These straits connect Lake Michigan and Lake Huron. The approval is seen as crucial to ensure a continued fuel supply and avoid potential disruptions for Michigan customers, including those relying on propane for home heating.

The MPSC emphasized that without Line 5, suppliers would have to resort to higher-risk and costlier alternative transportation methods such as trucking, railroads, oil tankers, or barges. This would increase the risk of spills that could have substantial negative impacts on the Great Lakes. According to the MPSC, there are no viable alternatives to the replacement project in terms of both feasibility and prudence under the Michigan Environmental Protection Act.

The commission also highlighted the benefits that the tunnel would bring. In addition to minimizing the risk of anchor strikes, it would serve as a containment structure in the event of any spill within the tunnel. This represents a significant improvement compared to the existing pipeline configuration.

Enbridge’s Line 5 replacement project has faced significant opposition due to concerns about potential environmental damage. However, the MPSC’s decision reflects a careful consideration of the public need for a reliable and efficient energy infrastructure while minimizing risks to the environment.

Michigan Commission Approves Permit for Great Lakes Tunnel Project

The Michigan Public Service Commission (MPSC) has voted 2-0 in favor of approving the permit for Enbridge’s Great Lakes Tunnel Project. Chairman Daniel Scripps and Commissioner Katherine Peretick voted in favor, while Commissioner Alessandra Carreon abstained.

Governor Whitmer, who had previously pledged to shut down the pipeline, appointed both Scripps and Peretick. This decision marks a significant step forward for the project.

Enbridge expressed its satisfaction with the MPSC’s decision and sees it as a crucial development in bringing the Great Lakes Tunnel Project to life. The company issued a statement acknowledging the thorough examination conducted by the MPSC, which considered various perspectives, questions, concerns, and ideas. Ultimately, the MPSC agreed with the conclusions put forth by its staff – that Line 5 plays a vital role in transporting essential energy resources for Michigan and the region. Placing the Line 5 pipeline inside the Great Lakes Tunnel will provide enhanced protection for these valuable bodies of water.

Enbridge is now waiting for necessary approvals from the U.S. Army Corps of Engineers to commence work on the project. However, the corps recently announced that its draft Environmental Impact Statement, initially slated for completion later this year, will likely be delayed until spring 2025.

Stacey LaRouche, Governor Whitmer’s press secretary, stated that the governor’s office is currently reviewing the MPSC’s decision. She further highlighted that the federal government is conducting its own review of Enbridge’s proposal, which is still pending. Additionally, ongoing litigation surrounds the continued operation of the dual pipelines.

Line 5 Pipeline: A Vital Energy Link

The Line 5 pipeline, spanning 645 miles, plays a critical role in transporting light crude and mixed natural gas liquids (NGLs) from Superior, Wisconsin, to Sarnia, Ontario. Enbridge, the energy company responsible for the pipeline, has highlighted that Line 5 supplies approximately 28% of the refining feedstock required by Marathon Petroleum Corp.’s Detroit refinery. Moreover, this pipeline serves as a crucial supplier for refineries in Toledo, Ohio, operated by PBF Energy Inc. and BP/Cenovus. In Canada, Suncor Energy’s 85,000 b/d refinery in Sarnia, along with fractionation facilities in the city, also heavily relies on Line 5.

Critical Propane Supply

Beyond its role in refining operations, Line 5 holds immense significance in meeting Michigan’s propane needs. Currently, the pipeline supplies approximately 55% of Michigan’s total propane requirements and an impressive 65% of the propane consumed in the Upper Peninsula and Northern Michigan.

Ongoing Legal Dispute

The Value of Line 5

The importance of Line 5 cannot be understated. It serves as a vital energy lifeline, supplying essential refining feedstock for major refineries and meeting a significant portion of Michigan’s propane requirements. While the legal dispute lingers, the future of Line 5 remains uncertain. The state’s concerns about environmental risks clash with Enbridge’s stance on federal jurisdiction.

fxcoach

Sunoco LP Plans $200 Million Investment for Organic Growth

Previous article

EyePoint Pharmaceuticals Inc. Announces Public Offering

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in News