Canadian energy giant Enbridge has awarded a contract to a joint venture between Barnard Construction Company and Civil and Building North America to construct the Great Lakes Tunnel beneath the Straits of Mackinac.

The tunnel will house Enbridge's Line 5 pipeline, providing a secure route for transporting oil across the Michigan peninsulas.

Barnard, based in Montana, and CBNA, based in Florida, will collaborate with Enbridge to build the tunnel under the oversight of the Mackinac Straits Corridor Authority (MSCA). 

Enbridge will fully finance the project, with ownership and operation transferring to the MSCA upon completion.

Construction of the tunnel is expected to begin once environmental permits are received from the U.S. Army Corps of Engineers.

The joint venture, Mackinac Straits Partners, will see Barnard and CBNA hold a 50% stake in the project.

Enbridge’s announcement follows recent regulatory approvals for Enbridge's operations. The company received approval for its Texas Eastern Transmission subsidiary received approval to begin service on a natural gas pipeline in Louisiana. 

Canada Energy Regulator also approved a toll settlement for oil transportation along its Canadian mainline.