CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it has received industry endorsement through the Canadian Association of Petroleum Producers (CAPP) for Enbridge's Southern Lights pipeline project including accelerated construction of the Light Crude Capacity Expansion Program (LCCEP) which forms a part of the project. The project remains subject to regulatory approvals and receipt of various permits in Canada and the United States.
The Southern Lights Diluent Pipeline involves development of a new pipeline system to transport light hydrocarbon liquids from the Chicago area back to Western Canada where the light hydrocarbon liquids are required as diluent for heavy crude production from the oil sands. The system will include the construction of 1085 kilometres (674 miles) of 20-inch pipe from Chicago to Clearbrook, Minnesota, and the reversal of an existing 1463-kilometre (909-mile) light crude line (Line 13) from Clearbrook to Edmonton, Alberta, at an estimated combined cost of approximately US$900 million.
The new system will have an initial capacity of 180,000 barrels per day, and Enbridge previously announced that it has received binding commitments from shippers to ensure utilization of the line, which is targeted to be in service in 2010. Enbridge has entered into agreements to secure the required line pipe and construction contractor resources.
The project also includes the LCCEP, which involves the construction of 504 kilometres (313 miles) of 20-inch pipeline from Cromer, Manitoba to Clearbrook (which will relieve a bottleneck on Enbridge's existing light crude system), plus an expansion of the capacity of Enbridge's Line 2 light crude pipeline. The cost of the LCCEP is estimated at approximately US$400 million.
The combined effect of removing Line 13 from light crude service, together with the LCCEP will be a net increase in light crude capacity of approximately 45,000 barrels per day. However, CAPP has requested an acceleration of the LCCEP to be in service by late 2008. The result will be a temporary increase in available light crude capacity of 215,000 barrels per day before dropping to the net 45,000 barrels per day increase when Line 13 is transferred to diluent service in 2010. There is mounting support by crude oil shippers to accelerate bringing Enbridge's Alberta Clipper mainline expansion project into service as early as late 2009 -- with 450,000 barrels per day of initial capacity -- at the same time that Line 13 is transferred to diluent service.
Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. The Company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. 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 5,000 people, primarily in Canada, the United States and South America. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the United States under the symbol ENB. Information about Enbridge is available on the Company's website at www.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 believes 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 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. Except to the extent required by applicable securities laws and regulations, 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.