A new report argued Enbridge's plan to build a tunnel for Line 5 between Lake Michigan and Lake Huron is too expensive and unnecessary.
The report from the Institute for Energy Economics and Financial Analysis stated the aging pipeline, which transports crude oil and natural gas liquids from Canada to the U.S., serves fewer customers and is harder to maintain. The report also pointed out the tunnel project will likely cost much more than Enbridge has admitted.
Suzanne Mattei, energy policy analyst at the Institute for Energy Economics and Financial Analysis, was the main author of the report.
"In our report, I would say conservatively, estimated that it would cost at least $500 million before it's through," Mattei reported. "But it could be more. We don't know."
The report noted Enbridge has not publicly confirmed a new cost figure and emphasized Enbridge should reconsider investing in an outdated pipeline, which could prolong the "carbon lock-in" effect, as markets for its products decline.
In 2018, Enbridge estimated the project at $500 million but according to the report, by 2022, the company revealed in a corporate earnings call costs had increased to $750 million and rising. Mattei argued aside from the project's high cost, maintaining the 70-year-old pipeline could present further challenges, despite Enbridge's claim the pipe is in excellent condition based on its assessment.
"How true is that when the underwater dual pipeline had the anchor strike in 2018 and the ship's cable snafu in 2020?" Mattei asked.
Another controversy involving the Line 5 project is the tribal claim of trespass. Some Native American tribes in Michigan and Wisconsin have argued the pipeline threatens their sacred lands and water rights, potentially violating protective treaties.
