Enbridge Inc. (ENB)’s target of having the Northern Gateway oil pipeline in service by 2018 is “quickly evaporating” as it strives to build support among aboriginal communities, a company official said.
It’s “going to take time,” John Carruthers, who heads the pipeline project for Enbridge, said in a presentation in Calgary today. “We need to have this time to meet with people and the focus will be on that.”
Aboriginal and environmental groups have prepared legal challenges and blockades to halt construction of the pipeline, which would transport Alberta oil to the Pacific coast for shipment to Asia. Prime Minister Stephen Harper’s cabinet endorsed the project in June, subject to 209 conditions set by a regulatory review panel in December.
Enbridge plans to update the C$6.5 billion ($6 billion) price tag on the pipeline by the end of the year, Carruthers said. The regulator estimated C$7.9 billion of spending on the 1,177-kilometer (732-mile) line when it published its decision last year.
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