CALGARY, ALBERTA--(CCNMatthews - Oct. 3, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it has increased its interest in Neptune Pipeline Company, L.L.C. through the acquisition of Marathon Gas Transmission Inc., a wholly owned subsidiary of Marathon Oil Company. The subsidiary owns a 24.33% interest in Neptune, a holding company that owns the Nautilus gas transmission pipeline and the Manta Ray gathering pipeline system, both in the offshore Gulf of Mexico. The value of the transaction was not disclosed.
As a result of the acquisition of MGTI, Enbridge will hold a 74.33% interest in Neptune with Enterprise Products Partners continuing to hold the remainder.
Nautilus is a 30-inch diameter natural gas transmission pipeline extending 103 miles from a platform in the Ship Shoal Block 207 in the central Gulf of Mexico region to the offshore Garden City area in south central Louisiana, where it interconnects with seven pipelines. Nautilus receives gas supply from the Manta Ray gathering system, which has various receipt points in the central Gulf including the newly constructed Cleopatra Gathering system in which Enbridge has a 22% ownership interest. The recently approved Neptune Gas Lateral will connect to the Cleopatra system. Nautilus has certificated capacity of 600 million cubic feet per day.
Manta Ray consists of 250 miles of pipe ranging from 10-inch to 24-inch diameter and also has 21,100 horsepower of compression located offshore. Capacity on Manta Ray ranges from 800 million cubic feet per day to 1 billion cubic feet per day.
"We are very pleased to increase our interest in both the Nautilus and Manta Ray systems," said Enbridge President & Chief Executive Officer Patrick D. Daniel. "As we noted when we acquired our original interest in the Gulf of Mexico last November, our ownership position in the Enbridge Offshore Pipelines systems provides us with a new growth platform with good upside potential, one that is financially and strategically attractive. While Hurricanes Katrina and Rita have certainly had a significant impact on the people of the Gulf, and on some of the energy infrastructure there, the hurricanes in no way diminish our interest in the future of the Gulf as a source of energy supply for North America. The Gulf of Mexico remains a key region for continental supply growth, and Enbridge plans to be a key player in that development."
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.