CALGARY, ALBERTA--(CCNMatthews - July 7, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced it will conduct an Open Season for the Gateway Project's Condensate Import Pipeline, which 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 import pipeline is a potential element of the Gateway Project, which also involves the 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.
Recent and anticipated market demand for condensate in Western Canada has stimulated considerable interest in the condensate line. The purpose of the Open Season is to confirm shipper support for the line to permit Enbridge to incorporate it into the Gateway Project development plan. The decision to proceed with one or both pipelines is subject to commercial considerations, including satisfactory shipper commitments, as well as successful completion of engineering, environmental planning, and public and Aboriginal consultation. The Company has already completed preliminary design work, engineering and environmental assessments of the pipeline, and is conducting a public and Aboriginal consultation program.
The Condensate Import Pipeline Open Season will proceed in two phases. Phase I will begin at noon MDT on July 8 and end at 5 p.m. MDT on August 12, 2005. During Phase I, prospective shippers will be provided the opportunity to comment on the documents and will be requested to provide indications of volume commitments. Phase II will occur between noon MDT on August 15 and 5 p.m. MDT on 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.
The Gateway condensate import pipeline would involve construction of a new 16-inch diameter pipeline with a minimum initial capacity of approximately 150,000 barrels per day to transport offshore condensate supplies from Kitimat or Prince Rupert to Edmonton. The pipeline would include docking and tankage terminal facilities in Kitimat or Prince Rupert and tankage terminal facilities in Edmonton, located next to Enbridge's existing tankage terminal facility. As with a crude oil export pipeline, the deepwater port would provide access to large-scale marine vessels and lower cost transportation options to potential shippers. The condensate import pipeline would be placed into service by mid-year 2010 and could benefit significantly from cost savings recognized if constructed concurrently with a crude oil export pipeline.
The Gateway condensate import pipeline will benefit Canadian producers by providing cost-effective transportation access for new condensate supply sources to meet the growing requirements for the production of Western Canada's oil sands.
Gateway is prepared to consider offering up to 49% of the equity participation in the Condensate Import Pipeline to shippers who enter into long-term capacity commitments.
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.