Page 8 - NorthAmOil Week 16 2021
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NorthAmOil                             PIPELINES & TRANSPORT                                      NorthAmOil



                                                                                                  Enbridge is seeking to
                                                                                                  relocate the underwater
                                                                                                  portion of Line 5, which
                                                                                                  runs through the Straits
                                                                                                  of Mackinac, into an
                                                                                                  underground tunnel.
























       Michigan regulators to consider




       climate impact of Line 5





        MICHIGAN         THE Michigan Public Service Commission   The regulator said it was required under the
                         (MPSC) ruled this week that it would con-  Michigan Environmental Protection Act to con-
                         sider the greenhouse gas (GHG) emissions of  sider not only pollution from building the tun-
                         Enbridge’s Line 5 project.           nel and new pipeline segment, but also from the
                           Calgary-based Enbridge is seeking to relocate  petroleum liquids the infrastructure will be used
                         the underwater portion of the pipeline, which  to transport. It did not say how much weight it
                         runs through the Straits of Mackinac, into an  would give to the GHG impact in determining
                         underground tunnel in a bid to extend the  whether to grant Enbridge a permit, but noted
                         lifespan of Line 5. However, the pipeline’s abil-  that it would welcome evidence.
                         ity to operate at all is under threat, after Michi-  Enbridge also still requires permits for con-
                         gan Governor Gretchen Whitmer ordered that  struction of the tunnel from the US Army Corps   The mediation
                         Enbridge shut down the pipeline by May 12. She  of Engineers.
                         has alleged that the company had repeatedly vio-  Meanwhile, the mediation process in the dis-  process in the
                         lated the conditions of the easement that allows  pute between Michigan and Enbridge began on
                         it to operate Line 5 in the Straits of Mackinac.  April 16. It is expected that no decision on Line  dispute between
                           Enbridge is contesting Whitmer’s order in  5’s fate will be reached until the middle of the
                         the courts. In the meantime, the MPSC is mov-  summer or beyond, and there is speculation that   Michigan and
                         ing forward with its review of Enbridge’s tunnel  as the court case plays out, Enbridge will be able   Enbridge began
                         proposal, having ruled that it would not pass  to keep operating the pipeline beyond Whitmer’s
                         judgment on whether the entire Line 5 should  deadline for a shutdown.      on April 16.
                         keep operating. Instead, it will focus only on the   The Canadian government has thrown its
                         6.4-km section of pipeline that crosses the straits  weight behind supporting the project. Last week,
                         connecting Lake Michigan and Lake Huron.  Canadian Natural Resources Minister Seamus
                           The whole of Line 5 is 1,038 km, running  O’Regan described the project as “non-nego-
                         from Wisconsin in the US to Ontario, Canada.  tiable” for Canada, saying Ottawa had spoken
                         It has the capacity to carry up to 540,000 bar-  with US President Joe Biden and all other levels
                         rels per day (bpd) of oil and natural gas liquids  of government in the US to defend the project.
                         (NGLs).                                Cross-border pipelines between the US and
                           The MPSC’s decision to consider the GHG  Canada are a sensitive issue following Biden’s
                         emissions related to Line 5 marks the first time  decision to revoke the permit for TC Energy’s
                         that such emissions will be factored into a review  Keystone XL project, which effectively killed that
                         of a project’s environmental impacts under the  pipeline. However, O’Regan said that Line 5 is
                         Michigan Environmental Protection Act.  “very different” from Keystone XL.™



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