CALGARY, ALBERTA--(CCNMatthews - Sept. 9, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it has reached agreement on long-term shipping commitments on the Waupisoo Pipeline with ConocoPhillips Canada, Petro-Canada, Suncor Energy Inc. and Total E&P Canada Ltd. Enbridge will construct the 30-inch diameter, 380-kilometre long Waupisoo Pipeline at an estimated cost of Cdn$400 million (in 2005 dollars) to transport crude oil from the Alberta oil sands to the Edmonton area refinery hub. The line's initial capacity will be 350,000 barrels per day with a maximum capacity of 600,000 barrels per day. Shipper commitments are subject to senior management and board of director approvals.
The expected in-service date of the pipeline is mid-2008 and initial development activities have been under way for some time based on a preliminary cost reimbursement agreement with the shippers. These activities include engineering design, route selection, environmental studies and other preparations for the filing of a regulatory application with the Alberta Energy and Utilities Board by the end of 2005. The contracts for laying the pipeline have been awarded, subject to receipt of regulatory approval.
Based on interest expressed by regional oil sands producers, Enbridge is including a 16-inch diluent return line within the scope of the project for public and aboriginal consultation purposes and regulatory approval. The diluent line, which is not part of the crude oil shipping agreement, would operate from Edmonton area refinery hub north to the oil sands region, and would be constructed in conjunction with the Waupisoo crude oil pipeline. The estimated cost of the diluent line is approximately Cdn$200 million. Shipping commitments have not been finalized on the diluent line.
Patrick D. Daniel, Enbridge President & Chief Executive Officer, said, "The Waupisoo Pipeline is a key element of our oil sands regional infrastructure development program, which is one of the major initiatives within our liquids pipelines growth plan. The new crude oil line brings our ultimate takeaway capacity from the oil sands to 1.2 million barrels a day. It enables us to offer shippers the flexibility to access either the Edmonton hub via Waupisoo, the Hardisty Hub via our existing Athabasca Pipeline, or a combination of delivery points. Like the Athabasca line, Waupisoo has been designed with ample low-cost expansion capacity to meet the future requirements of our anchor shippers, and those of additional projects under development in the oil sands. The agreement with our anchor shippers is a win/win situation, assuring them access to capacity and sharing the benefits from additional volumes in future. The diluent return line will support growth in oil sands production by facilitating adequate diluent supplies."
The Waupisoo Pipeline will initiate at Enbridge's Cheecham Terminal on the Athabasca Pipeline and terminate adjacent to Enbridge's mainline Edmonton Terminal. The preliminary route was selected to minimize impact on environmentally sensitive areas, aboriginal traditional territories and agricultural lands. The route will be further defined through the public consultation process and field studies.
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 4,300 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.