A controversial power line project in southern Alberta may be purchased by energy giant Enbridge Inc. of Calgary.
The company announced plans Aug. 16 to buy Tonbridge Power Inc. of Toronto, owners of the Montana Alberta Tie Ltd. (MATL) for $20 million, plus acquire $50 million in Tonbridge debt related to the line.
The project, which involves installation of a 345 kilometre power line from Lethbridge to Great Falls, Montana, has been mired in controversies with landowners on both sides of the border. Construction halted in June after MATL announced the need for another $50 million to complete the project, initially projected to cost $209 million.
Enbridge, well known for its oil and gas operations in North America, expects to complete the deal Sept. 26 and restart construction as soon as possible, said Lino Luison, vice-president of financial partnerships for Enbridge. Completion of the line is anticipated in mid-2012.
Southern Alberta landowners hope a new owner will improve matters relating to MATL.
“We’re hopeful that Enbridge will be easier to deal with,” said Daryl Bennett, a land agent representing about 35 Alberta landowners in disputes with MATL.
Luison said Enbridge is used to dealing with landowners, having completed many pipeline megaprojects in the past.
“We have a long history of building relationships with landowners, so I would see that exact parallel being executed when and if this deal closes at the end of September.”
The deal would be Enbridge’s first foray into electrical transmission projects. Luison said more are likely as Alberta and Canada’s energy needs increase.
“It is absolutely our first investment in power transmission per se. We see it as an attractive opportunity across North America. There is an enormous need for new transmission lines across the continent and hopefully we’ll be able to be large participants in that sector.”
