CALGARY, ALBERTA--(CCNMatthews - May 4, 2004) - Enbridge Inc.
(TSE, NYSE: ENB) today announced it has filed an application with
the State of Alaska to negotiate commercial agreements for the
construction and operation of the segment of the Alaska Highway
Pipeline Project (AHPP) proposed to be built in the state.
"Enbridge intends to be at the forefront of development and
planning for an Alaska gas pipeline," said Patrick D. Daniel,
President & Chief Executive Officer of Enbridge. "With this
application, we are formalizing our intention to take a
leadership position within a broad coalition of commercial
interests focused on bringing Alaska gas to market. The magnitude
of capital investment and risk required by this project will
necessitate a partnership of producers, pipeline companies and
other potential participants.
"We strongly believe our application provides a competitive
alternative to other pipeline proposals. Ultimately, this project
will be developed by the parties that can bring together a wide
array of public, private and commercial interests," Mr. Daniel
said.
The application to the State of Alaska is the first significant
step in a project that will require extensive producer and
stakeholder consultation in advance of regulatory processes in
both the U.S. and Canada. Enbridge is currently engaged in
preliminary consultation and will intensify its efforts during
the next few months.
Under the Alaska Stranded Gas Development Act (ASGDA), interested
parties must file an application with the State to initiate
formal negotiations over the commercial terms of an agreement to
participate in the natural gas pipeline project. The Act governs
pipeline construction and operations for the portion of the
project built in Alaska, from Prudhoe Bay to the Canadian border.
Separate regulatory requirements will be required for the
Canadian portion of any new pipeline system.
Enbridge cited a number of strengths that position the company as
a strong partner for one of the largest pipeline projects ever
proposed in North America:
- With more than 50 years of continental experience, Enbridge
owns and operates the world's longest crude oil and liquids
pipeline system, delivering more than 2 million barrels per day
to markets in Canada and the U.S.
- Enbridge owns and operates Canada's largest natural gas
distribution company, serving more than 1.7 million customers in
Ontario, Quebec, New Brunswick and New York State
- It also has significant ownership interests in two
large-diameter, cross-border natural-gas systems: Alliance
Pipeline (50 per cent) and Vector (60 per cent)
- With its Norman Wells liquids pipeline (100 per cent) and
Inuvik Gas (33 per cent), Enbridge has extensive experience
building and operating oil and gas pipelines in northern
permafrost
- Enbridge Energy Partners owns and operates more than 15,000 km
(9,000 miles) of natural gas transmission and gathering pipelines
in the U.S. Mid-continent and Gulf Coast areas
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.
When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar
expressions are intended to identify forward-looking statements,
which include statements relating to pending and proposed
projects. Such statements are subject to certain risks,
uncertainties and assumptions pertaining to operating
performance, regulatory parameters, weather and economic
conditions and, in the case of pending and proposed projects,
risks relating to design and construction, regulatory processes,
obtaining financing and performance of other parties, including
partners, contractors and suppliers.
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