NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: ENBRIDGE INC.
TSX, NYSE SYMBOL: ENB
APRIL 14, 2005 - 12:00 ET
Enbridge and PetroChina Sign Gateway Pipeline
Cooperation Agreement
CALGARY, ALBERTA--(CCNMatthews - April 14, 2005) - Enbridge Inc. (TSX:
ENB) (NYSE:ENB) today announced that it has entered into a memorandum of
understanding with PetroChina International Company Limited to cooperate
on the development of the Gateway Pipeline and supply of crude oil from
Canada to China. The Gateway Pipeline is a proposed project to transport
400,000 barrels per day of Alberta oil sands production from Edmonton,
Alberta to a port on the west coast of British Columbia where it would
be shipped by tanker to China, other Asia-Pacific markets, and
California.
The agreement, signed in Beijing, China by Enbridge President & Chief
Executive Officer Patrick D. Daniel, provides that Enbridge will assist
PetroChina to aggregate long-term supplies of Canadian crude oil.
Enbridge and PetroChina have a number of crude supply initiatives under
development with a target of approximately 200,000 barrels per day.
Enbridge has separate initiatives to accumulate commitments from other
potential shippers on the Gateway Pipeline to fill the remaining
capacity.
"This is a positive step forward on a project which will have major
benefits for Enbridge, for oil sands producers and for Canada, as well
as for consumers in China and other offshore markets," said Mr. Daniel.
"However, there remains a great deal to be accomplished before the
Gateway Pipeline can become a reality."
"Definitive long-term agreements for the sale of crude oil to the
Chinese will need to be negotiated, as will longer term capacity
commitments with other shippers. We will continue our consultation with
the many aboriginal communities and other stakeholders, and we will need
to complete our plans to minimize environmental impacts. Only when all
of these matters are concluded in a manner which supports the commercial
feasibility of the project will we be in a position to file a regulatory
application."
Mr. Daniel added, "The agreement with PetroChina builds on a favourable
environment for trade between Canada and China which has been cultivated
by Prime Minister Paul Martin, and the efforts of Alberta Premier Ralph
Klein to stimulate Chinese interest in the oil sands."
The Gateway Pipeline that Enbridge is proposing would be a new 30-inch
diameter crude oil pipeline with design capacity of 400,000 barrels per
day. It would provide a new export route to markets in the Asia-Pacific
region and the United States west coast, and Enbridge continues to
assess two potential ports - Kitimat and Prince Rupert - for the
deep-water marine terminal that will be needed. The Company has already
completed preliminary design work, engineering and environmental
assessments of the pipeline, and, during the last three years, has been
engaged in preliminary discussions with a number of stakeholders
including shippers, governments and Aboriginal communities.
A regulatory application for the $2.5 billion, 1,160-kilometre
(720-mile) crude oil pipeline would have to be made in 2006 to achieve a
late 2009/2010 in-service date, which is when Enbridge's Western Canada
crude oil supply forecast indicates that oil sands production will have
increased to the level that access to a major new market will be
beneficial to producers.
Gateway is one of a number of Enbridge initiatives to ensure that there
is sufficient pipeline capacity to transport the estimated 700,000 to
900,000 barrels per day of incremental oil sands production that is
anticipated by 2010. In addition to Gateway, Enbridge is developing
projects such as the Spearhead, Southern Access and Waupisoo pipelines,
and additional mainline expansion, to transport additional volumes of
bitumen and synthetic crude oil to current North American markets and to
new markets in the United States.
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 approximately 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 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.
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