Enbridge Inc. ENB has moved a step closer to advancing its $800 million Great Lakes Tunnel Project ("GLTP") after the Michigan Department of Environment, Great Lakes and Energy ("EGLE") reissued a key water resources permit. The permit allows construction activities in sensitive environmental areas and revives a project that had stalled after an earlier permit expired while Enbridge and the state spent nearly eight years in litigation.
The GLTP will replace the aging 73-year-old dual Line 5 pipelines beneath the Straits of Mackinac with a tunnel housing a new pipeline segment. Line 5 is a strategically important asset, transporting approximately 23 million gallons of crude oil and natural gas liquids per day from western Canada through Michigan to refining and distribution hubs, including Sarnia, Ontario. Replacing the underwater pipeline with a tunnel is expected to improve the system's long-term safety and operational reliability while preserving a critical energy transportation corridor.
The latest permit follows a 16-month environmental review. During this time, EGLE reviewed more than 70,000 public comments, consulted Tribal Nations and assessed the findings of an independent engineering firm. EGLE imposed additional conditions on ENB, including an enhanced wetland mitigation plan and measures to protect cultural resources. Despite ongoing opposition from environmental and Native American groups, the regulator concluded that the project's benefits outweigh competing public interest concerns.
While securing the permit is a positive milestone for Enbridge, it is not the final hurdle. The project still requires approvals from the U.S. Army Corps of Engineers, the Michigan Department of Natural Resources and the Michigan Public Service Commission, alongside a pending NPDES permit renewal. Nonetheless, this regulatory headway significantly reduces the risks of constructing one of Enbridge's key long-term infrastructure projects. If completed, the tunnel is expected to generate additional fee-based revenues from Enbridge’s liquids transportation network, strengthening its business model and boosting investor appeal.
ENB's Zacks Rank & Key Picks
Enbridge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are NOV Inc. NOV, Natural Gas Services Group, Inc. NGS and National Energy Services Reunited Corp. NESR. NOV currently carries a Zacks Rank #2 (Buy), while NESR and NGS sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
NOV is a global provider of equipment, technologies and services for the oil and gas drilling and production industries, operating across 548 locations on six continents. In the first quarter of 2026, the company achieved record profits from its subsea flexible pipe and process systems businesses, reflecting strong demand in offshore energy markets. NOV reported record bookings in the first quarter of 2026 for its composite solutions business and maintains a strong subsea flexible pipe backlog extending through 2028, providing long-term revenue visibility.
Headquartered in Southlake, TX, Natural Gas Services Group manufactures, fabricates, sells, rents and services natural gas compressors to enhance well production, alongside manufacturing flare and ignition systems used in production facilities. In June 2026, the company significantly expanded its operational footprint in the Permian Basin and Eagle Ford regions by acquiring Flatrock Compression Holdings. This strategic acquisition expanded NGS’ fleet of large-horsepower and electric-driven compression solutions, broadened its customer base and immediately boosted key financial metrics.
National Energy Services Reunited delivers integrated drilling and reservoir services across the Middle East, North Africa and Asia-Pacific, helping producers maximize output and efficiency. With rising global demand for electricity fueling a shift toward natural gas, NESR is well-positioned to capitalize on growing upstream energy investments.
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This article originally published on Zacks Investment Research (zacks.com).