CALGARY, ALBERTA--(CCNMatthews - Aug. 16, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced a successful conclusion to the first phase of the Gateway Condensate Import Pipeline open season. Indications of interest in volume commitments by potential shippers substantially exceed the planned initial 150,000-barrel-per-day capacity of the pipeline. During the second phase of the open season, Enbridge will determine whether to increase the initial capacity.
The condensate import pipeline would provide transportation for offshore condensate supply from Canada's West Coast at Kitimat or Prince Rupert, British Columbia with redelivery to Edmonton, Alberta. The condensate pipeline is one element of the Gateway Project, which also involves a crude oil export pipeline to transport crude oil from Edmonton to Kitimat or Prince Rupert to service both U.S. West Coast markets and Asia-Pacific refiners. A separate open season for the crude oil export pipeline will be held later this year.
Based on the response to Phase l of the open season process, Enbridge is proceeding with Phase II, with a scheduled completion date of September 30, 2005. Phase II will involve the execution by prospective shippers of a Precedent Agreement that will become binding when accepted and executed by Enbridge.
The Open Season procedures are available on the Enbridge website at www.enbridge.com/gateway.
Richard Bird, Group Vice President, Liquids Pipelines for Enbridge said, "The Gateway condensate pipeline open season confirms a high level of interest in diversifying condensate supplies available to oil sands producers. Ensuring adequate, competitively priced access to diluent is an important ingredient in maximizing the production from Alberta's oil sands. As such, the condensate pipeline would complement the Gateway crude oil export pipeline, which is a key component of our overall plan to maximize oil sands value by providing access to new markets with corresponding economic benefits for the Province of Alberta and all of Canada. Development of the condensate pipeline in tandem with the crude pipeline would also permit considerable capital cost savings and lower tolls for shippers. The decision to apply for regulatory approval of one or both pipelines remains subject to finalization of satisfactory shipper commitments, as well as successful completion of environmental planning, and public and aboriginal consultation."
Enbridge Inc. 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 more than 4,000 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.