CALGARY, ALBERTA--(CCNMatthews - June 20, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that U.S. subsidiary Enbridge Offshore Pipelines, L.L.C. will extend its Gulf of Mexico pipeline infrastructure by constructing a natural gas gathering lateral to connect the deepwater Shenzi field to existing Gulf pipelines.
"The Shenzi lateral project, which follows the similar Neptune lateral project announced last year, is another positive step in our strategy of building on Enbridge's recently acquired deepwater offshore businesses in the Gulf of Mexico," said Doug Krenz, President of Enbridge Offshore Pipelines. "It leverages existing Enbridge gas infrastructure in the Gulf, positioning us for other opportunities in the region."
Enbridge will construct and operate a gas lateral that will consist of 11 miles of 12-inch diameter pipe and will have the capacity to deliver in excess of 100 million cubic feet per day.
The Shenzi discovery represents a major development relatively close to Enbridge's existing Green Canyon infrastructure. The Shenzi development will provide a new natural gas supply source and potential for additional supply sources for the existing Cleopatra, Manta Ray and Nautilus offshore pipeline systems, all partially owned by Enbridge.
The Shenzi field is located approximately 120 miles from the coast of Louisiana in water depths of approximately 4,300 feet. BHP Billiton will be operator of the field, which has estimated recoverable reserves in the range of 350 million to 400 million barrels of oil equivalent: BHP Billiton has a 44% interest in the field, BP Exploration & Production Inc. has 28%, and Hess Corporation has 28%. Development plans, costing approximately US$4.4 billion gross through the year 2015, include drilling a number of subsea wells, and the wells, subsea flowlines and other production facilities that will be operated by BHP Billiton on behalf of the joint venture partners.
The lateral pipeline to be built by Enbridge is expected to be completed by year-end 2007, with first gas expected by mid-year 2009.
Enbridge Offshore Pipelines provides Enbridge with wholly owned or joint venture interests in 11 transmission and gathering pipelines in five major pipeline corridors in Louisiana and Mississippi offshore waters of the Gulf of Mexico. The system moves on average approximately 3 billion cubic feet per day - approximately half of all deepwater Gulf of Mexico natural gas production.
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 to 1.8 million customers in the provinces of Ontario, Quebec and New Brunswick, and in New York State. The Company employs approximately 4,600 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. 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.