CALGARY, ALBERTA and HOUSTON, TEXAS--(CCNMatthews - Dec. 14, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB), Enbridge Energy Partners, L.P. (NYSE:EEP) (collectively "Enbridge") and Global Pipeline Partners, LLC ("GPP") jointly announced today that they have entered into a three-year Alliance Agreement to construct new pipelines for 321 miles of the Wisconsin portion of the Enbridge Southern Access Program, 75 miles of early winter construction for Enbridge's Southern Lights project, and to jointly collaborate on future additional projects. Remaining work for these projects in Wisconsin and Illinois will proceed subject to appropriate regulatory and shipper approvals.
GPP is a partnership of four experienced pipeline construction contractors, including: Michels Corporation of Brownsville, Wisconsin; Precision Pipeline, LLC of Eau Claire, Wisconsin; U.S. Pipeline, Inc. of Houston, Texas and Welded Construction, L.P. of Perrysburg, Ohio.
"Enbridge and its many stakeholders have high expectations for the quality of workmanship, safety and environmental sensitivity in the construction and ultimate operation of these pipelines. We entered into the Alliance Agreement with this consortium of experienced pipeline construction contractors through a competitive process that recognized their prior experience and local knowledge of the area, dedication to innovation and continuous improvement in safety and environmental performance and strong relationships with regional labor resources," said Dale Burgess, project director for Enbridge.
"The Enbridge-GPP Alliance Agreement will mean that hundreds of skilled workers, many of whom are local residents in Wisconsin and Illinois, will work over the next three years on these major expansions to the nation's energy infrastructure," Burgess noted. "Overall, these projects and this construction contract are a win-win for workers, local contractors and consumers, who will benefit from this boost in the region's secure access to vital North American petroleum resources, while complying with environmental permits and safety standards."
Upon the execution of the Alliance Agreement, a spokesman for GPP added, "GPP is extremely pleased to have entered into this Alliance Agreement with Enbridge. This Alliance Agreement represents an unprecedented commitment designed to draw upon the strengths of both Enbridge and GPP to create an environment of innovation and continuous improvement in the areas of construction, environmental compliance and safety. We are hoping to get started with the winter work as soon as possible to maximize our productivity during this environmentally advantageous time."
The Alliance Agreement currently includes construction of 321 miles of 42-inch pipeline for the Southern Access, Stage 1 project and 75 miles of 20-inch pipeline for Enbridge's Southern Lights project that will be built concurrently and along the same route as the 42-inch pipeline. The Alliance Agreement also provides the opportunity for the parties to expand the scope of the agreement for further construction of the remaining 399 miles of Southern Lights 20-inch pipeline, an additional 133 miles of 42-inch pipeline for Stage 2 of Southern Access and 175 miles of 36-inch pipeline for the Southern Access extension project. These additional awards will be subject to acceptable performance by GPP on the initial construction work, final approvals of these projects by Enbridge, and approvals by the Canadian Association of Petroleum Producers and the applicable regulatory bodies.
Additional details on these Enbridge expansion projects, along with the Enbridge ownership of each segment, is available on Enbridge's project web site at www.enbridge-expansion.com
ABOUT ENBRIDGE INC.
Enbridge Inc. ( www.enbridge.com ), a Canadian company, is a leader in energy transportation and distribution in North America and internationally. Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. Enbridge also owns and operates Canada's largest natural gas distribution company, and distributes gas to customers in Ontario, Quebec, New Brunswick and parts of New York State. The Company has international operations and a growing involvement in the natural gas transmission and midstream businesses.
ABOUT ENBRIDGE ENERGY PARTNERS
Enbridge Energy Partners, L.P. ( www.enbridgepartners.com ), a U.S. publicly traded partnership, owns and operates a diversified portfolio of crude oil and natural gas transportation systems in the United States. Its principal crude oil system delivers to refining centers in the U.S. Midwest and account for approximately 10 percent of total U.S. oil imports. The Partnership's natural gas gathering, treating, processing and transmission assets deliver more than 2 billion cubic feet of natural gas daily. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc., is the general partner and holds an approximate 17 percent effective interest in the Partnership.
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 believes that these statements are based on information and assumptions that 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 our Canadian securities filings and American SEC filings. While Enbridge makes 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. Enbridge assumes 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.