Business News Network reported today that Enbridge (TSX:ENB) plans to switch its crude oil from one pipeline to another before it crosses the U.S. Border. That strategy will allow Enbridge to ship more oil without having to undergo a review for a new line.
As quoted in the publication:
The State Department, responsible for approving cross- border energy projects like the Alberta Clipper and the proposed Keystone XL line to the U.S. Gulf Coast, said in a statement that Enbridge can go forward with its plan under authority granted by previously issued permits.
The Calgary-based company plans to construct a link between the Alberta Clipper and an adjacent pipeline known as Line 3. By transferring oil from the Clipper to Line 3 before it crosses the border and then back again after the oil is in the U.S., Enbridge doesn’t need a U.S. presidential permit that is required for new lines.