CALGARY, ALBERTA--(CCNMatthews - Dec. 12, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it will acquire a 65% common share interest in the Olympic Pipe Line Company (Olympic) from Arco MidCon LLC, a wholly owned subsidiary of BP, for a total consideration of US$101.9 million, which includes Enbridge's share of existing shareholder debt. Closing of the purchase is anticipated to occur by year end, subject to receipt of regulatory approvals and customary closing conditions. The acquisition is expected to be immediately accretive to earnings per share.
Olympic owns the largest refined products pipeline in the State of Washington, transporting approximately 290,000 barrels per day (bpd) of gasoline, diesel and jet fuel. The pipeline system extends 480 kilometres (300 miles) from Blaine, Washington to Portland, Oregon, connecting four Puget Sound refineries to terminals in Washington and Portland. Olympic delivers refined product to terminals in Washington (Seattle, Renton, Tacoma, Olympia, Vancouver) and Portland. Olympic is the sole supplier of jet fuel to the Seattle-Tacoma International Airport and is a major supplier to the Portland International Airport. The system consists of 640 kilometres (400 miles) of 6-to-20-inch diameter pipe, a 500,000-barrel products terminal, 9 pumping stations and 21 delivery points or facilities. Arco MidCon LLC will continue to own the remaining 35% interest and BP Pipelines (North America) Inc. will remain in its role as operator of the pipeline system.
"The investment in Olympic Pipe Line Company is consistent with the Enbridge strategy of investing in stable energy infrastructure assets that come with strong organic growth opportunities," said J. Richard Bird, Enbridge Group Vice President, Liquids Pipelines. "This investment enables Enbridge to enter the U.S. refined products pipeline business in a growing market and new geographic region. It also further expands and diversifies the investment base of Enbridge and provides an important window into the U.S. West Coast market."
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.