CALGARY, ALBERTA--(CCNMatthews - Dec. 19, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that the Open Season for the Gateway Petroleum Export Pipeline concluded successfully on December 16, 2005. Non-binding indications of interest in excess of the 400,000 barrels per day (bpd) economic threshold were received.
The Petroleum Export Pipeline will provide low-cost transportation from the origination of Gateway at Edmonton, Alberta, to the west coast of British Columbia, at Kitimat, then via marine transport to Asia and U.S. west coast markets. The additional pipeline capacity will be required to provide expanded market access for crude oil expected to be produced in growing amounts from Alberta's oil sands. The Petroleum Export Pipeline is one component of the Gateway Project, which also involves a Condensate Import Pipeline. Enbridge is also working to conclude negotiation of precedent agreements with the potential condensate pipeline shippers.
Commenting on the Open Season results, J. Richard Bird, Enbridge Group Vice President, Liquids Pipelines said, "The response to the Open Season exceeded our expectations and supports continued preparations to file a full regulatory application in 2006, following the Preliminary Information Package filed earlier this year. Based on the level of subscriptions, we will look at increasing the planned pipeline diameter from 30 inches to 36 inches. At throughput levels above 400,000 bpd, the 36-inch line would permit a significant reduction in tolls. Together with the synergies we can now plan on from constructing the condensate line and the crude line in tandem, the increased scale for both pipelines would provide a very economical pipeline system."
Enbridge will work with the shippers who participated in the Open Season to finalize binding precedent agreements and initial pipeline capacity. The regulatory application will be filed following completion of binding agreements for both pipelines, subject to satisfactory completion of the environmental assessment and mitigation plan, and public and aboriginal consultation.
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 in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 4,400 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.