CALGARY, ALBERTA AND HOUSTON, TEXAS--(CCNMatthews - Feb. 9, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) and Enbridge Energy Partners, L.P. (NYSE:EEP) (the "Partnership") today announced a plan to increase the diameter of the Southern Access Expansion between Superior, Wisconsin and Chicago, Illinois from 30-inch pipe to 36-inch pipe. This section of the Southern Access Expansion Program is being undertaken by the Partnership, which approved the larger diameter in response to a request from the Canadian Association of Petroleum Producers (CAPP).
The increased pipe diameter reflects continued discussions with CAPP to tailor the Southern Access Expansion to provide maximum value to crude oil shippers. The basic scope of the Expansion, which was endorsed by CAPP in December 2005, is to provide 400,000 barrels per day (bpd) of additional heavy crude capacity from Hardisty, Alberta to Flanagan, Illinois, near Chicago, by early 2009. Based on support from CAPP, regulatory approval of the agreed cost-of-service tolling methodology is expected in the first quarter of 2006 from the Federal Energy Regulatory Commission, and fieldwork is well under way.
The increased pipe diameter does not provide a direct increase in the 400,000 bpd capacity of the Southern Access Expansion program, although it will provide a significant reduction in power costs. However, the larger pipe size will permit a further 400,000 bpd of capacity between Superior and Chicago at minimal additional cost, when required by shippers in conjunction with a corresponding expansion of capacity between Western Canada and Superior.
Commenting on CAPP's decision, Patrick D. Daniel, President & Chief Executive Officer of Enbridge Inc., said, "Southern Access is under construction as the next major tranche of export capacity out of Western Canada. It is a very important project in its own right, but it is a component of an even more important broader plan we have been developing for several years, with shipper input, to ensure adequate access to the most attractive markets for Canadian crude oil. The plan includes numerous initiatives downstream of Chicago, including the Spearhead Pipeline and the Southern Access Extension, to extend economic pipeline paths to new markets. We have worked, and continue to work, closely with CAPP to ensure these initiatives will create value for our shippers.
"The plan also includes an initiative to provide further low-cost capacity to the U.S. Midwest, over and above Southern Access, when required by shippers. This initiative includes the Alberta Clipper Pipeline, which we recently made public. CAPP's decision to increase the Superior to Chicago section of Southern Access to 36-inch pipe is a very forward looking step which lays the foundation for the post-Southern Access Expansion initiative. When shippers need that extra 400,000 bpd of capacity, the Enbridge system is best positioned to provide it at lowest cost and with greatest delivery and storage flexibility."
Refinements to the scope of the Expansion which have been agreed to with CAPP include a phased design which brings 44,000 bpd of capacity into service in 2007, plus a further 146,000 bpd by early 2008, before reaching full capacity in 2009. The phased design adds approximately US$60 million (2005 dollars) to the project's expected cost. The increased pipe diameter adds US$165 million (2005 dollars), for a total project cost for both the Canadian and U.S. expansion programs of US$1,175 million (2005 dollars).
Additional information on the Southern Access Program is posted at www.enbridgepartners.com.
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.
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.
LEGAL NOTICE
When used in this news release, words such as "anticipates", "expects", "plans", "will" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining to factors such as: (1) changes in the demand for, or the supply of, and price trends related to crude oil and natural gas liquids; including the rate of development of the Alberta Oil Sands; (2) changes in or challenges to Enbridge Partners' tariff rates; (3) the effects of competition, including by other pipeline systems; (4) regulatory approvals; and (5) performance of other parties. Reference should also be made to Enbridge Partners' filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the most recently completed fiscal year, for additional factors that may affect results. These filings are available to the public over the Internet at the SEC's web site (www.sec.gov) and via Enbridge Partners' web site.