CALGARY, ALBERTA--(CCNMatthews - Dec. 10, 2004) - Enbridge Inc.
(TSX:ENB) (NYSE:ENB) today announced it plans to proceed with its
proposed Spearhead Pipeline project, following the successful conclusion
of its open season for shipper commitments and after securing support
from the Canadian Association of Petroleum Producers. The Spearhead
Pipeline will provide crude oil transportation service from the Enbridge
main line system at Chicago, to the storage and refining hub at Cushing,
Oklahoma.
The recent open season resulted in 10-year shipping commitments of an
initial 60,000 barrels per day, increasing to 75,000 barrels per day by
2009. Following regulatory approval from the Federal Energy Regulatory
Commission in the United States and the National Energy Board in Canada,
Enbridge will begin work to reverse the flow of the line, which
historically operated in south-to-north service between Cushing and
Chicago. Enbridge expects to have the line in service during the first
quarter of 2006, with initial capacity of 125,000 barrels per day. The
line could subsequently be expanded to accommodate up to 160,000 barrels
per day.
"The Spearhead Pipeline is expected to benefit both Canadian producers
and U.S. refineries by providing transportation for growing supplies of
crude oil from Western Canada to refineries in southern PADD II. The
Spearhead Pipeline is an important part of our ongoing strategy to
provide access to new crude oil markets throughout the continental U.S.
and beyond," said Patrick D. Daniel, President and CEO, Enbridge Inc.
Enbridge acquired in 2003 a 90-percent interest in the 1,050-km
(650-mile) Cushing to Chicago Pipeline System from BP Pipelines North
America Inc. BP Pipeline retains 10-percent ownership, but Enbridge
retains an option to acquire BP's interest.
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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