CALGARY, ALBERTA and HOUSTON, TEXAS--(CCNMatthews - Oct. 3, 2005) - Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Enbridge Energy Partners, L.P. (NYSE:EEP) today provided an update on the status of operations in the U.S. Gulf Coast region affected by Hurricane Rita.
Enbridge Inc. Facilities
Enbridge Inc. has interests in five pipeline corridors in the Gulf of Mexico. In advance of Hurricane Rita, all personnel along the four corridors that Enbridge operates were successfully evacuated and facilities shut down by Wednesday afternoon, September 21, 2005.
Flights over the eastern Gulf began on Sunday, September 25, 2005 and impact assessment continued through the week. We have now confirmed that no material incremental damage from Hurricane Rita appears to have occurred on the three eastern-most corridors (Destin, Mississippi Canyon and Green Canyon).
The western Garden Banks and Stingray corridors were along the path of Hurricane Rita. Initial onsite and aerial inspections were completed last week and confirmed no material damage to platform facilities and pipe integrity was not compromised. Sonar inspection of underwater pipe to assess sediment support and cover is pending. No major structural damage appears to have occurred at the onshore Stingray dehydration and compressor facilities however, due to flooding, the electrical, control equipment and office buildings require repairs that we believe can be completed by year-end 2005.
We estimate the potential 2005 earnings impact of Hurricane Rita will be approximately Cdn $5 million. Our estimate is subject to a number of factors including ongoing assessments, disclosures by operators of interconnecting production and processing facilities, and discussions with insurance carriers.
Enbridge Energy Partners Facilities
Enbridge Energy Partners, L.P. ("Partnership") onshore gas transmission and processing systems in Texas and Louisiana were affected either directly or indirectly. The offshore UTOS system, which comes onshore in western Louisiana, was in the direct path of the Hurricane Rita damage and resulting floods. The UTOS system and interconnected production and processing facilities have now been visually inspected and we confirmed no material structural damage to pipeline integrity or onshore facilities. However, flooding damaged the electrical equipment and process controls, requiring repairs over the next few weeks.
Other natural gas gathering and processing midstream systems have been indirectly affected due to storm-related third-party facility disruptions that temporarily curtailed our ability to gather unprocessed natural gas at our processing plants. We mitigated the impact and avoided extensive gathering and processing system shutdowns by arranging for gas liquids to be trucked out of plants and by working with interconnecting natural gas pipelines to manage natural gas quality at major receipt points. The impact to the Partnership's 2005 net income caused by Hurricane Rita is estimated to be approximately US $2 million.
Enbridge Response and Staff
Enbridge facilities along the Gulf and the Houston office began shutting down late Wednesday, September 21, as evacuation of the region began. Critical system operations, such as offshore and midstream gas control, were relocated to previously established backup facilities without interruption. The Houston office facility was not damaged, and resumed normal operations on Tuesday, September 27.
Enbridge President & Chief Executive Officer Patrick D. Daniel said, "Enbridge had over 400 employees who were in the regions that were subject to mandatory or voluntary evacuations. Our emergency contingency preparations again proved themselves up to the task. I am impressed by the preparation and coordination of our staff who worked throughout the evacuation and over the weekend to relocate gas control operations safely, manage critical business, and begin assessments in a very challenging situation."
"While the impact from Hurricane Rita was less than the worse initial predictions, we are concerned for the towns and parishes that were affected and for those employees who live in the coastal areas most impacted by the hurricane and sustained damage to their homes. Enbridge will provide assistance to these employees, as we were doing to those families in Louisiana and Mississippi previously impacted by Hurricane Katrina," added Daniel.
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.
Enbridge Partners (www.enbridgepartners.com) owns the U.S. portion of the world's longest liquid petroleum pipeline and is active in natural gas gathering, processing and transmission. Enbridge Energy Management, L.L.C. (www.enbridgemanagement.com) manages the business and affairs of the Partnership, and its sole asset is an approximate 18 percent interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, is the general partner of Enbridge Partners and holds an approximate 11 percent effective interest in the Partnership.
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.