Enbridge Pipelines has awarded a C$282m ($212.7m) pipeline construction contract to SA Energy Group for Spreads 8 and 9 of the Phase 2 of the Line 3 Replacement project in Manitoba, Canada.
SA Energy Group is a 50/50 joint venture (JV) between Canadian construction company Aecon and Robert B. Somerville, a general contractor based in Ontario.
The Line 3 Replacement Phase 2 project is part of the C$5.3bn ($4bn) Canadian portion of the Line 3 Replacement Program. It involves the replacement of nearly 1,070km of the existing Line 3 pipeline between Hardisty, Alberta and Gretna, Manitoba with new pipeline.
SA Energy’s scope of work involves construction of 92.2km of pipeline in the area of Brandon, Manitoba for Spread 8 and construction of 96.5km of pipeline near Morden, Manitoba for Spread 9, which will extend to the Canada-US border.
Aecon Group president and CEO John M. Beck said: “This award, combined with Aecon’s recent major project wins, will see backlog reach record levels in the second quarter of 2018 and demonstrates our proven capabilities delivering a diverse range of projects through Aecon’s Industrial segment.”
Aecon said that construction is anticipated to begin next month with substantial completion of the work estimated to be achieved by the year end.
Its joint venture SA Energy had recently wrapped up construction on Spreads 3 and 4, comprising 261km of pipelines in Saskatchewan under Phase 1 of the Line 3 Replacement project.
Aecon Industrial executive vice president Mark Scherer said: “SA Energy Group’s experience executing Spreads 3 and 4 with outstanding safety and quality performance, engagement of Indigenous Peoples and regulatory compliance, highlights the joint venture’s proven capability to deliver key components of this project.
“The award of Spreads 8 and 9 solidifies SA Energy Group as a partner-of-choice for Enbridge and Aecon looks forward to further mobilizing pipeline capabilities while working with our partners on this important project.”
Enbridge expects the Line 3 Replacement project in Canada to enter into commercial operations in the second half of 2019. The company is carrying out a similar replacement project of the US section of the Line 3 pipeline system with an investment of $2.9bn.