CALGARY, ALBERTA--(CCNMatthews - Sept. 20, 2004) - Enbridge Inc.
announced today it has entered into an interim agreement with
Nexen Inc. and OPTI Canada Inc. (the Long Lake Shippers) to
provide pipeline transportation services for the Long Lake oil
sands project. The agreement will be replaced by definitive
transportation agreements and, apart from cost reimbursement
provisions, is subject to completion of such definitive
agreements.
Under the terms of the agreement, Enbridge will prepare for
construction of the pipeline and storage facilities required by
the Long Lake Project, including one or more diluent laterals, a
crude lateral, blending facilities, and tank storage facilities
at a proposed terminal on the Athabasca Pipeline, near Cheecham.
Enbridge's 545-km Athabasca Pipeline will also require capacity
expansion from the Cheecham-area terminal to its mainline
terminal at Hardisty, Alta.
The agreement provides for an initial contract volume of up to
60,000 barrels per day of crude oil for a 50-month term, with
provisions for extension of the term and increase of the contract
volume. The agreement also will provide flexibility for the Long
Lake Shippers to use a proposed new pipeline - the Waupisoo
Pipeline - to move crude oil from the new terminal at Cheecham to
Edmonton. The preliminary agreement will facilitate a planned
availability for service date in late 2006.
"We're pleased with the opportunity to provide pipeline services
for another major oil sands project. Our existing infrastructure
and operating presence in the region, plus our planned Waupisoo
Pipeline into Edmonton, enable us to provide low-cost, flexible,
as-and-when-needed transportation solutions to oil sands
producers," said J. Richard Bird, Enbridge's Group Vice
President, Transportation North. "Our role in serving the Long
Lake Project is consistent with our broad strategy of supporting
the full potential of the oil sands by ensuring both adequate
regional pipeline infrastructure and access to new downstream
markets."
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 storage capacity.
The Hardisty Terminal has storage capacity of 1.6 million
barrels, with an additional 4 million barrels of storage capacity
at the adjacent Hardisty Cavern storage facility, jointly owned
by Enbridge and CCS Inc.
The $3.4 billion Long Lake Project, the fourth and next major oil
sands project in Canada, is a 50/50 joint venture of Nexen Inc.
and OPTI Canada. The first phase consists of 72,000 barrels per
day (b/d) of SAGD (steam assisted gravity drainage) oil
production, integrated with an onsite upgrading facility using
both proprietary and conventional upgrading technologies. The
first phase of the Project is expected to produce up to 60,000
b/d of products, primarily 39-degree API premium sweet crude with
a very low sulphur content, making it a highly desirable refinery
feedstock. Construction of this project is currently underway and
first production from the upgrader is expected in 2007.
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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