HOUSTON, TEXAS and CALGARY, ALBERTA--(Marketwire - Aug. 24, 2010) - Enbridge Energy Partners L.P. (NYSE:EEP) ("EEP") and Enbridge Income Fund (TSX:ENF.UN) ("ENF") announced today that they are proceeding, subject to customary regulatory approvals, with a joint project to further expand crude oil pipeline capacity to accommodate growing production from the Bakken and Three Forks formations located in Montana, North Dakota, Manitoba and Saskatchewan. The Bakken Expansion Program will increase takeaway capacity from the Bakken play by 145,000 barrels per day (bpd), which can be readily expanded to 325,000 bpd at low cost. EEP and ENF are affiliates of Enbridge Inc. (collectively "Enbridge").
"This latest in a series of expansions will provide shippers with favorable tolls, diverse market alternatives and batch quality maintenance for this high quality light sweet crude. Further, the Bakken and Three Forks formations represent an area of tremendous opportunity for both Enbridge Energy Partners and Enbridge Income Fund," said Stephen J. Wuori, Executive Vice President, Liquids Pipelines, Enbridge Inc. "We anticipate substantial further production growth based on discussions with producers, and our own regional supply analysis. We are well positioned to provide shippers with attractive transportation options based on our extensive existing operations in the region."
Enbridge's Bakken Expansion Program will involve U.S. projects which will be undertaken by EEP at a cost of approximately US$370 million; and Canadian projects which will be undertaken by ENF at a cost of approximately Cdn $190 million. The expansion program will originate at Beaver Lodge Station near Tioga, North Dakota, in the heart of the Bakken, and will follow existing EEP and ENF rights of way to terminate at and deliver to the Enbridge mainline terminal at Cromer, Manitoba. In addition, EEP has proposed a separate project to expand its pipeline system south of the Missouri River, connecting to Beaver Lodge Station and providing increased access to the expanded North Dakota System. Once on the Enbridge mainline, Bakken production will have access to the multiple markets accessible from the mainline and connected pipeline systems. The Program is a series of pipeline expansion projects that will provide approximately 145,000 bpd of incremental capacity from North Dakota into the Enbridge Mainline at Cromer, Manitoba by Q1 2013.
EEP and ENF have received sufficient long-term shipping commitments from anchor shippers to enable the Bakken Expansion Program to proceed. A binding Open Season is planned to provide other shippers with the opportunity to make shipping commitments between Berthold and Cromer on the same terms as provided to anchor shippers, as well as to provide an opportunity to commit to capacity on the proposed expansion of EEP's pipeline system in northwestern North Dakota. Details on the Open Season will be announced separately.
The Bakken Expansion Program follows a series of expansions that have been undertaken by EEP and ENF to economically respond to growing crude oil transport needs from this region. EEP's North Dakota System completed a 51,000 bpd expansion to reach a total annual capacity of 161,500 bpd on January 1, 2010. That capacity was immediately fully utilized, and operational finetuning is being undertaken to further enhance the capacity of this system between North Dakota and the Enbridge mainline system at Clearbrook, Minnesota. ENF's Saskatchewan System is currently undertaking three separate expansions, expected to be in service late this year, that will collectively increase upstream capacity of the gathering systems by 125,000 bpd. Total capacity into Cromer following the current (Phase II) and the previously completed Phase I expansion will be 230,000 bpd.
"We are confident that this series of expansions will relieve much of the current demand for pipeline capacity out of the Bakken and Three Forks production areas as well as provide the foundation for timely future expansions to meet the needs of the region", said Mr. Wuori. "The suite of projects we're proposing will provide firm access from North Dakota oilfields to the 2 million barrel per day Enbridge Mainline System. Along with ongoing reliable service for existing shippers on EEP's North Dakota System and ENF's Saskatchewan system, the expanded systems optimize segregated light sweet pipeline capacity serving the Great Lakes region of the Upper Midwest and the Midcontinent refinery markets connected to Cushing, Oklahoma.
"By providing shippers with timely, cost-effective, long-haul and long-term transportation solutions, Enbridge's Bakken Expansion Program will give them the best options and greatest connectivity into North American refinery and marketing hubs."
Enbridge Inc. (TSX:ENB) (NYSE:ENB) has a 27% ownership interest in EEP, and a 72% economic interest (41.9% voting interest) in ENF. Enbridge manages the day-to-day operations of, and develops and assesses opportunities for each of these investments, including both organic growth and acquisition opportunities.
About Enbridge Energy Partners, L.P.
Enbridge Energy Partners, L.P. (www.enbridgepartners.com) owns and operates a diversified portfolio of crude oil and natural gas transportation systems in the United States, including the Enbridge North Dakota System. Its principal crude oil system is the largest transporter of growing oil production from western Canada. The system's deliveries to refining centers and connected carriers in the United States account for approximately 11 per cent of total U.S. oil imports; while deliveries to Ontario, Canada satisfy approximately 60 per cent of refinery demand in that region. EEP's natural gas gathering, treating, processing and transmission assets, which are principally located onshore in the active U.S. Mid-Continent and Gulf Coast area, deliver approximately 3 billion cubic feet of natural gas daily.
Enbridge Energy Management, L.L.C. (www.enbridgemanagement.com) manages the business and affairs of EEP and its sole asset is an approximate 14 per cent interest in EEP. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, (NYSE:ENB) (TSX:ENB) (www.enbridge.com) is the general partner and holds an approximate 27 per cent interest in EEP.
About Enbridge Income Fund
Enbridge Income Fund is an unincorporated, open-ended trust created to provide a stable and sustainable flow of distributable cash to unitholders. ENF is a premier income fund in Canada with a low-risk profile focused on energy infrastructure assets. It owns a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in Enbridge Pipelines (Saskatchewan) Inc., and a 50% interest in NRGreen Power Limited Partnership, which operates electrical generation facilities using waste heat, and holds interests in three wind power projects in Western Canada. Enbridge Income Fund's trust units are listed and trade on the Toronto Stock Exchange under the symbol "ENF.UN". Information about Enbridge Income Fund is available on ENF's web site at www.enbridgeincomefund.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 growing involvement in the natural gas transmission and midstream businesses, and is expanding its interests in renewable and green energy technologies including wind and solar energy, hybrid fuel cells and carbon dioxide sequestration. 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. Enbridge employs approximately 6,000 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 enbridge.com
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge and its affiliates EEP and ENF believe that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in the Canadian securities filings for ENB and ENF, and American SEC filings for ENB and EEP. While Enbridge and its affiliates 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 vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge and its affiliates assume no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
For more information please contact:
Enbridge Inc. and Enbridge Income Fund
Gina Jordan/Jennifer Varey
Media
(403) 508-6563 or Toll Free: (888) 992-0997
gina.jordan@enbridge.com
www.enbridge.com or www.enbridgeincomefund.com
or
Enbridge Inc. and Enbridge Income Fund
Vern Yu
Investment Community
(403) 231-3946
vern.yu@enbridge.com
or
Enbridge Energy Partners, L.P.
Lorraine Grymala
Media
Toll-free: (877) 496-8142
usmedia@enbridge.com
www.enbridgepartners.com
or
Enbridge Energy Partners, L.P.
Douglas Montgomery
Investor Relations
(713) 821-2086
Toll-free: 1-866-EEP INFO or 1-866-337-4636
eep@enbridge.com