Work begins in Sask. on $5.3B Enbridge pipeline replacement

Construction has started on a multi-billion project to replace an aging Enbridge oil pipeline that cuts through Saskatchewan.

The company is spending $5.3 billion to replace the Canadian segment of Line 3, which starts in Alberta, crosses Saskatchewan and ends in Manitoba. The American segment, which is also being replaced, continues on to Superior, Wis.

Construction crewsbegan working out of a staging area in Outlook, Sask., recently. An estimated 4,457 direct jobs are being createdby the installation, which is expected to wrap up 2019.

Steel from Regina Evraz plant

But the project began creating work for Saskatchewan nearly two years ago, when the Regina Evraz steel-making plant began producing the bulk of the project's required 1,660 kilometres of steel.

"It's going to be just over 460,000 tonnes of steel produced for this project," said Courtland Klein, the recording secretary for United Steelworkers 5980, which represents nearly 1,000 workers at the Regina Plant.

The original pipeline dates back to the 1960s, according to Enbridge.

"In the last number of years, pipelines have become a swear word," said Klein. "This is a very good project, what Enbridge is doing. They're replacing it before any major catastrophe happens."

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Enbridge says the replacement line will be made of"the newest and most advanced pipeline technology and provide much-needed, incremental capacity to support Canadian crude oil production growthand U.S. and Canadian refinery demand."

The replacement project is expected to generate $184 million in tax revenue for Saskatchewan.