CALGARY, ALBERTA--(CCNMatthews - Oct. 3, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that the Open Season for the Gateway Project Condensate Import Pipeline concluded on September 30, 2005. Final commitment amounts and detailed terms of precedent agreements and equity participation agreements remain under discussion with individual shippers. Based on the results of the open season, Enbridge plans to increase the diameter of the pipeline from 16 inches to 20 inches to provide a greater ultimate capacity.
The condensate pipeline will provide low-cost transportation for imported condensate from the west coast of British Columbia, at either Kitimat or Prince Rupert, to Edmonton, Alberta. Additional condensate is required to provide the diluent necessary for transportation of heavy crude oil expected to be produced in growing amounts from Alberta's oil sands. Condensate supplies are expected to be more plentiful in offshore markets than in Western Canada. The condensate pipeline is one component of the Gateway Project, which also involves a crude oil export pipeline, from Edmonton to Kitimat or Prince Rupert, to service both U.S. West Coast and Asia-Pacific markets. The open season for the crude oil pipeline is expected to commence in mid-October.
Richard Bird, Group Vice President, Liquids Pipelines for Enbridge said, "Based on the open season we can now be confident we will have at least the minimum required threshold of 150,000 barrels per day committed to the line, and probably more. A 20-inch line rapidly becomes more economic than a 16-inch line at levels above 150,000 barrels per day, and provides greater ultimate capacity expansion capability. It's therefore a more appropriate design based on our discussions with shippers. The successful open season on the condensate line also means we will be able to focus on lower tolls for the crude oil line as we commence that open season in a couple of weeks. There is a capital cost savings of approximately 13% from constructing both lines in tandem."
Mr. Bird also said, "Most of our condensate line shippers are considering taking advantage of the option to participate, as partners, in the ownership of the line. We will be working with them over the next few months to finalize the transportation agreements and partnership agreements. We are continuing to target a regulatory application for 2006, subject to satisfactory completion of the agreements, as well as of the environmental assessment 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 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.
For more information please contact:
Enbridge Inc.
Jim Rennie
Media
(403) 231-3931
Email: jim.rennie@enbridge.com
or
Enbridge Inc.
Bob Rahn
Investment Community
(403) 231-7398
Email: bob.rahn@enbridge.com
Website: www.enbridge.com