CALGARY, ALBERTA--(CCNMatthews - Oct. 19, 2005) - Enbridge Inc.(TSX:ENB) (NYSE:ENB) today announced it will conduct a non-binding open season for the Gateway Project - Crude Oil Export Pipeline, which will provide transportation for crude oil from Edmonton, Alberta, to the west coast at Kitimat, B.C. The Crude Oil Export Pipeline project is the second element of the Gateway Project. The other element, the Condensate Import Pipeline, recently closed its open season.
Global supply constraints have resulted in considerable interest in Alberta's growing oil sands production. Market interest has been significant, particularly from refineries in the United States west coast region and Asia-Pacific countries. The Gateway Crude Oil Export Pipeline project will benefit Canadian producers by providing cost-effective access to new markets.
The purpose of the Open Season is to confirm shipper support for the line to permit Enbridge to incorporate it into the Gateway Project regulatory application. The Gateway Project remains dependent on achievement of commercial feasibility, including satisfactory shipper commitments, as well as successful completion of engineering, environmental planning, and public and Aboriginal consultation prior to an application for regulatory approval. The Company has already completed preliminary design work, engineering and environmental assessments of the pipeline, and is conducting a public and Aboriginal consultation program.
The Crude Oil Export Pipeline open season will begin at noon MDT on October 19, 2005, and end at 5 p.m. MST on December 16, 2005. Prospective shippers submitting a non-binding expression of interest will be provided with the proposed agreement documents for an opportunity to comment on them. At the end of the Open Season, Enbridge will negotiate a precedent agreement with potential shippers that will become binding when accepted and executed by both parties.
The open season procedures are available on the Enbridge Gateway website at www.enbridge.com/gateway.
The Gateway Crude Oil Export Pipeline project will involve a new 1216-km (760-mile) 30-inch diameter pipeline with a minimum initial capacity of approximately 400,000 barrels per day to transport crude oil supplies from Edmonton to Kitimat. The pipeline will include tankage and terminal facilities in Edmonton, and docking, tankage and terminal facilities on the west coast. The deepwater port will provide access to large-scale marine vessels that will provide lower cost transportation options to potential shippers. The target in-service date for the Crude Oil Export Pipeline is early 2010. If both the crude oil export and the condensate import pipelines were constructed concurrently, there would be significant cost savings resulting in lower tolls for all shippers.
Gateway is prepared to discuss offering equity participation in the Crude Oil Export Pipeline to shippers who enter into long-term capacity commitments.
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 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.