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In a major blow to the Canadian oil industry, Enbridge Inc. now expects the replacement and expansion of its Line 3 crude oil pipeline to be in service about one year later than expected.

The project, previously slated to start shipping crude in the fourth quarter of this year, is now expected to enter service in the second half of 2020, the Calgary-based company said Friday. Construction is being pushed back because the Minnesota permitting process won’t be complete until November, and the federal permits won’t be received until as long as 60 days after that.

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The delay is a crushing setback for Canadian oil producers, who have suffered from a lack of pipeline space that has made it difficult to ship their crude to refineries, hammering prices. Enbridge’s Line 3 is particularly important because the Alberta government was counting on its startup this year to let it end mandated production cuts that were implemented to cope with a glut of crude.