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CORRECTED-UPDATE 2-Enbridge raises Line 3 replacement cost estimate by $1.1 bln

(Corrects currency to U.S. dollars from Canadian dollars inheadline, value of capital cost estimate in paragraph 5)

Feb 12 (Reuters) - Enbridge Inc on Friday forecasthigher costs for its long-contested pipeline replacementproject, citing regulatory and permitting delays, winterconstruction and COVID-19 protocols, among other reasons.

Line 3, built in the 1960s, ships crude from a Canadian oilhub in Edmonton, Alberta, to U.S. Midwest refiners, and carriesless oil than it was designed for because of age and corrosion.Replacing the pipeline would allow Enbridge to roughly doubleits capacity to 760,000 barrels per day.

While the Canadian portion is complete, Enbridge has runinto repeated obstacles in Minnesota, where reviews have lastedfor about five years.

The updated cost also comes at a time when U.S. PresidentJoe Biden has canceled the permit needed to build TC EnergyCorp's Keystone XL oil pipeline in a blow to Canada'soil sector, which had already been depressed for years due tohigh production costs and carbon emissions.

Enbridge now estimates capital costs for the Line 3replacement project, including the Canadian segment already inservice, at $8.18 billion up from $7.08 billion. The increasedcosts are on the U.S. portion of the pipeline.

Calgary, Alberta-based Enbridge said it targeting to put thepipeline in service in the fourth-quarter.

The company, which also missed estimates for quarterlyprofit on Friday, said volumes on its liquids mainline wereimpacted by reduced refinery demand.

On an adjusted basis, Enbridge earned 56 Canadian cents pershare, while analysts had expected 61 Canadian cents per share,according to IBES data from Refinitiv.($1 = 1.2738 Canadian dollars)(Reporting by Arundhati Sarkar in Bengaluru; Editing by SherryJacob-Phillips, Shailesh Kuber and Jan Harvey)

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