CALGARY, ALBERTA--(CCNMatthews - Nov. 15, 2004) - Enbridge Inc.
(TSX:ENB) (NYSE:ENB) announced today it has entered into an interim
agreement with ConocoPhillips Surmont Partnership, Total E&P Canada
Ltd., and Devon ARL Corporation - the Surmont Shippers - under which
Enbridge will undertake preliminary work for the construction of
pipeline and related facilities required by the Surmont project. Those
facilities could include one or more diluent lateral pipelines, a
blended crude lateral pipeline, as well as blending and tank facilities
at Enbridge's proposed Cheecham Terminal on the Athabasca Pipeline.
The interim agreement allows work on the transportation facilities to
proceed while Enbridge and the Surmont Shippers continue to negotiate
transportation agreements.
The proposed new facilities will accommodate an initial contract volume
of 50,000 barrels per day of blended crude associated with the initial
phase of Surmont development, and for potential expansion of the
contract to 220,000 barrels per day. The preliminary agreement will
facilitate a planned in-service date of mid-2006.
Following completion of the transportation agreements, the Athabasca
Pipeline will require capacity expansion from Cheecham to Enbridge's
mainline terminal at Hardisty, Alberta.
"This is the second major oil sands project for which we have announced
an interim pipeline agreement this year," said J. Richard Bird,
Enbridge's Group Vice President, Transportation North. "Our existing and
planned pipeline facilities in the oil sands region, including a
proposed new Waupisoo Pipeline to Edmonton, enable us to provide a range
of attractive and flexible transportation alternatives to oil sands
producers. We are continuing to focus on ensuring that both the regional
pipeline infrastructure, and the capacity to access new downstream
markets, are adequate to support the full potential of Alberta's oil
sands."
Enbridge announced on September 20 a preliminary agreement with Nexen
Inc. and OPTI Canada to provide pipeline transportation services to the
Long Lake oil sands project, in the same region as the Surmont project.
The Long Lake agreement calls for the construction of pipeline and tank
facilities at a proposed new terminal on Enbridge's Athabasca Pipeline,
near Cheecham.
Enbridge's Athabasca Pipeline, with ultimate capacity of 570,000 barrels
per day, links its Athabasca Terminal, just south of the Suncor plant
near Fort McMurray, to the company's Hardisty Terminal in central
Alberta. The pipeline serves Suncor and, via lateral pipelines,
Petro-Canada and EnCana. The Athabasca Terminal has 1.5 million barrels
of crude oil tankage capacity. The Hardisty Terminal has tank capacity
of 1.6 million barrels, with an additional 4 million barrels of tankage
capacity at the adjacent Hardisty Caverns facility, jointly owned by
Enbridge and CCS Inc.
The Surmont Oil Sands Project is owned by ConocoPhillips, the operator
(43.5 per cent), TOTAL (43.5 per cent) and Devon (13 per cent). The
project is located approximately 60 km southeast of Fort McMurray,
between the communities of Anzac and Janvier.
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 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.
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