CALGARY, ALBERTA--(CCNMatthews - July 25, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it is proceeding, with the formal support of its shippers and the Canadian Association of Petroleum Producers (CAPP), to immediately commence implementation of its US$350 million Southern Access Extension Pipeline Project. The new pipeline will extend the Enbridge crude oil mainline from Flanagan, Illinois (just west of Chicago) south to the hub at Patoka, Illinois. Construction of the line remains subject to regulatory, permitting and board approvals.
The Extension will consist of 286 kilometres of 36-inch diameter pipe with an initial capacity of 400,000 barrels per day (bpd), expandable at low cost to 800,000 bpd through the addition of further pumping power. The new line is targeted to come into service as early in 2009 as possible. Tolls for service from Flanagan to Patoka will reflect a distance-based roll-in with the U.S. mainline system, owned by Enbridge Energy Partners, L.P. (NYSE:EEP), for all barrels which originate on the mainline.
Patrick D. Daniel, President and Chief Executive Officer of Enbridge said, "The Southern Access Extension fills in another piece of the new market access plan we have been developing for several years to accommodate growth in oil sands production. The Extension has been sized to provide ample capacity for Canadian crude to access the Patoka hub, from which it can move to a variety of markets such as Wood River, the U.S. Gulf Coast and Eastern PADD II. It will create value for Canadian producers, who will be able to reach an expanded array of markets at low cost; and for U.S. refiners, who will gain enhanced access to secure and growing volumes of Canadian crude oil. The Southern Access Extension complements the Southern Access Expansion program currently under development by Enbridge and EEP."
ABOUT ENBRIDGE INC.
Enbridge Inc. (www.enbridge.com) 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. Enbridge 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, which provides distribution services in the provinces of Ontario and Quebec, and in New York State; and is developing a gas distribution system for the Province of New Brunswick. Enbridge is a Canadian company and its 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.
ABOUT ENBRIDGE ENERGY PARTNERS
Enbridge Energy Partners, L.P. (www.enbridgepartners.com) owns and operates a diversified portfolio of crude oil and natural gas transportation systems in the U.S. Its principal crude oil system is the largest transporter of growing oil production from western Canada. The system's deliveries to refining centers in the U.S. Midwest account for approximately 10 percent of total U.S. oil imports; while deliveries to Ontario, Canada satisfy approximately 60 percent of refinery demand in that region. The Partnership'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 more than 2 billion cubic feet of natural gas daily. Enbridge Energy Management, L.L.C. (NYSE:EEQ) (www.enbridgemanagement.com) manages the business and affairs of the Partnership and its principal asset is an approximate 18 percent interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. is the general partner and holds an approximate 11 percent 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.