HOUSTON, TEXAS and CALGARY, ALBERTA--(Marketwire - Dec. 20, 2011) - Enterprise Products Partners L.P. ("Enterprise") (NYSE:EPD) and Enbridge Inc. ("Enbridge") (NYSE:ENB) (TSX:ENB) today announced plans to hold concurrent open seasons from January 4, 2012 through February 10, 2012 to solicit capacity commitments from shippers for an expansion of the Seaway pipeline and an extension of the pipeline into the Port Arthur/Beaumont refining market. Enterprise and Enbridge recently announced plans to reverse the flow direction of the 500-mile, 30-inch diameter Seaway crude oil pipeline, enabling it to transport crude oil from the oversupplied hub in Cushing, Oklahoma to the U.S. Gulf Coast.
The initial 150,000 barrels per day ("BPD") of capacity on the reversed system could be available by the second quarter 2012. Following pump station additions and modifications, which are expected to be completed by the first quarter 2013, capacity would increase to 400,000 BPD assuming a mix of light and heavy grades of crude oil.
Shippers who participated in the Wrangler open season have indicated strong support for the Seaway reversal and expansion. Given the advantages associated with Seaway, Wrangler has been terminated. Depending on the results of the open season, the Seaway pipeline would be looped or twinned to create additional capacity. This new loop would be built at the size and capacity required to meet shipper needs and in a location that generally follows the route of the existing Seaway pipeline.
Michael A. Creel, President and Chief Executive Officer of Enterprise's general partner said, "Leveraging the benefits of the existing Seaway pipeline system, which is expected to be fully contracted, provides shippers with accelerated access to the Gulf Coast refining market, while an expansion offers incremental capacity in excess of 400,000 barrels per day and could be available in early 2014."
The new 85-mile pipeline that will be built from Enterprise's ECHO crude oil terminal southeast of Houston to Port Arthur, Texas will give shippers access to the region's heavy oil refining capabilities. Service is scheduled to begin in early 2014.
In a separate announcement, Enbridge today announced that it is proceeding with its Gulf Coast Access project, which will transport crude oil from Flanagan, Illinois, south to Cushing via an additional line it will construct, and then to Houston and Port Arthur on the Seaway Pipeline system joint venture. Enbridge will also hold a concurrent second open season to provide the opportunity for shippers to subscribe for additional capacity from Flanagan all the way to the Texas Gulf Coast.
"Expansion of the Seaway System, complemented by the addition of capacity on Enbridge's systems from the Chicago area to Cushing, gives both U.S. and Canadian producers new and timely options to reach the Gulf Coast," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc.
Enbridge's $1.15 billion acquisition of an interest in Seaway from ConcocoPhillips closed December 20, 2011. Enterprise and Enbridge each own a 50 percent ownership interest in the pipeline system with Enterprise continuing to serve as operator.
Additional information about the open seasons will be available online at www.seawaypipeline.com beginning January 4, 2012. For commercial inquiries, please contact:
| Enterprise | ||
| Bart Moore | Bob Schroeder | |
| (713) 381-8267 | (405) 239-5738 | |
| bmoore@eprod.com | rjschroeder@eprod.com | |
| Enbridge | ||
| Brad Shamla | Vince Paradis | |
| (403) 231-5915 | (403) 231-5991 | |
| brad.shamla@enbridge.com | vincent.paradis@enbridge.com | |
About Enterprise Products Partners L.P.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Enterprise's assets include approximately: 50,000 miles of onshore and offshore pipelines; 192 million barrels of storage capacity for NGLs, refined products and crude oil; and 8 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation, transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. Additional information is available a www.enterpriseproducts.com.
About Enbridge Inc.
Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a significant and growing involvement in natural gas gathering, transmission and midstream businesses, and an increasing involvement in power transmission. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, Enbridge has interests in close to 860 megawatts of renewable and alternative energy generating capacity and is expanding its interests in wind and solar energy, geothermal and hybrid fuel cells. Enbridge employs approximately 6,400 people, primarily in Canada and the U.S. and is ranked as one of Canada's Greenest Employers, and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and Enbridge expect, believe or anticipate will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. Although Enterprise and Enbridge believe that the forward-looking statements included herein are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risks and uncertainties included in the reports filed with the Securities and Exchange Commission by Enterprise and Enbridge, respectively, and in the filings made by Enbridge with Canadian securities regulatory authorities. While Enterprise and Enbridge make these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those expected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, neither Enterprise nor Enbridge intends to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
For more information please contact: