Enbridge, Canada’s biggest pipeline operator, reported Friday it has completed 40% of its $9 billion Line 3 pipeline replacement project, Kallanish Energy reports.

The crude oil pipeline runs from Alberta to Wisconsin.

The company called the pipeline replacement “a critical integrity replacement project” on the company’s Mainline System to move tar sands crude oil from western Canada.

“The project continues to progress well on several fronts,” Enbridge said, in a statement.

“In Canada, the first phase of pipeline construction is complete, with approximately 40% of the pipe now laid, and the remaining segments to advance construction later this year.

“In the U.S., the pipeline replacement work in Wisconsin is now complete and has been placed into service,” it said.

The Minnesota Public Utilities Commission has approved pipeline construction and an alternate route. That ruling is expected to be finalized next month.

The company said additional federal and state permits are needed on that section of the pipeline and construction could begin in first quarter and service would begin in the second half of 2019. It said the project’s cost is $9 billion, higher than previous reports.

The pipeline would be 1,097 miles in length and run through three states and Canada. Line 3 runs from Hardisty, Alberta, to Superior, Wisconsin.

The pipeline is a key part of Enbridge’s Mainline System for transporting crude oil to refineries and markets in the U.S. and eastern Canada.

The pipeline, now 34 inches in diameter, will be replaced with a 36-inch line.

Enbridge also reported net income rose to C$1.07 billion ($823.68 million), compared to C$919 million ($707.44 million) in Q@ 2017.

“We’re very pleased with our strong financial results this quarter and the year is shaping up well,” said president and CEO Al Monaco, in a statement.

The company, he said, moved record volumes on its Liquids Mainline System in the quarter, 2.64 million barrels per day (Mmbpd), up from 2.45 Mmbpd a year ago.