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Enbridge Stock Could See Pressure As Whitmer Orders Shutdown Of Michigan Pipeline

On Friday, Michigan Gov. Gretchen Whitmer filed legal action to shut down the Line 5 pipeline that transports oil under the Straits of Mackinac.

· 11/13/2020 14:23

On Friday, Michigan Gov. Gretchen Whitmer filed legal action to shut down the Line 5 pipeline that transports oil under the Straits of Mackinac.

What Happened: Whitmer’s office notified the company it has 180 days and then the flow must stop, according to WOOD-TV.

Michigan Attorney General Dana Nessel filed a lawsuit to carry out Whitmer’s decision.

Why It’s Important: The Line 5 pipeline owned by Enbridge Inc (NYSE:ENB) carries 23 million gallons of oil and natural gas daily between Superior, Wisconsin and Sarnia, Ontario.

Enbridge spokesman Ryan Duffy said the company was “looking it over,” referring to the lawsuit, reports The Detroit News.

In 2018, Enbridge built a $500-million utility tunnel to protect the pipeline, which could end up being not enough to save the pipeline’s flow going forward.

Experts told The Detroit News that Michigan consumers could see an increase in the price of fuel, natural gas and propane.

Related Link: 10 US Oil Stocks To Buy At Cyclical Lows

What’s Next: The news from Michigan comes shortly after The Star Tribune reported Minnesota regulators approved permits for Enbridge’s Line 3 replacement, which could begin construction in December. 

The election of Joe Biden as president is expected to shut down several pipeline projects. 

Axios reported that Biden wants to shut down the Dakota Pipeline, owned by Energy Transfer (NYSE:ET) and Keystone Pipeline, owned by TC Energy (NYSE:TRP).

ENB Price Action: Shares of Enbridge were down 0.8% at $28.70 at last check Friday. Shares have fallen 28% year-to-date.