CALGARY, ALBERTA--(CCNMatthews - May 3, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today it will proceed with the development of a new crude oil terminal at Hardisty, Alberta. The terminal will involve a development cost of approximately $250 million for an initial capacity of 5 million barrels.
The new terminal will be located close to, but separate from, Enbridge's existing regulated mainline system terminal at Hardisty, and Enbridge's 50 per cent-owned Hardisty Caverns partnership. Like the Hardisty Caverns partnership, the new terminal will provide services on a long-term contract fee-for-service basis. The Company has entered into letters of intent, for terms averaging seven years, on 80 per cent of the initial design capacity; and is in active discussions with additional parties whose interest exceeds the remaining capacity. The design of the facility includes ample room for future expansion.
"Our new Hardisty contract terminal is a key piece of our broader terminal development initiative," said Patrick D. Daniel, Enbridge President and Chief Executive Officer. "We currently have 15 million barrels of tankage under long-term contract, with another 30 million barrels under development at eight different locations, and a total investment opportunity of $1.5 billion. Many of these projects, like the new Hardisty terminal, are scheduled to be in service in the next two to three years."
Mr. Daniel concluded, "Demand for terminaling facilities is very strong as a result of growth in oil sands production, seasonality of markets, and greater price volatility. The new Hardisty facility has low cost expansion potential and will position us well to attract additional business as oil sands production continues to grow."
The Hardisty Terminal project includes the construction of 16 new tanks with all the necessary associated piping, manifolds, and booster pumps to facilitate crude oil transfers to and from the new facilities and the Enbridge mainline system and other connecting carriers and terminals. The tanks will range in size from 250,000 to 530,000 barrels. Construction is estimated to take between 24 to 30 months, and it is anticipated the facility would be in service in September 2008.
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 U.S., the world's longest crude oil and liquids transportation 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 Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 4,500 people, primarily in Canada, the U.S. and South America. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol ENB. Information about Enbridge is available on the Company's web site 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 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.