CALGARY, ALBERTA--Enbridge Inc. (TSE, NYSE: ENB) today announced
that companies within the Enbridge group have agreed to acquire
crude oil pipeline and storage systems from Shell Pipeline
Company LP and Shell Oil Products US for an aggregate of US$140.5
million. The majority of the assets, involving systems located
at, or originating from, Cushing, Oklahoma, will be acquired by
Enbridge Energy Partners, L.P. (NYSE: EEP) ("Enbridge Partners")
for approximately US$131 million, as separately announced today
by Enbridge Partners. Enbridge owns an effective 12.2% interest
in Enbridge Partners and manages it through an affiliate,
Enbridge Energy Management, L.L.C. (NYSE: EEQ). A wholly owned
subsidiary of Enbridge will acquire two smaller systems in the
Wood River/Patoka corridor in southern Illinois for US$9.5
million. Closing of the purchases is anticipated to occur in the
first quarter of 2004, subject to regulatory approvals and rights
of first refusal.
The systems to be acquired by Enbridge Partners consist of three
different pipelines totaling 615 miles, and two crude oil storage
terminals with a total of 9.5 million barrels of capacity. The
systems to be acquired by Enbridge Inc. include a 60% interest in
the Woodpat Pipeline from Wood River Illinois, to Patoka,
Illinois, plus a 500,000-barrel terminal at Patoka.
"We're pleased with the continued progress which we're making to
expand and diversify the asset base of Enbridge Partners.
Enbridge will benefit from the accretion in distributable cash
flow through its equity share in the Partnership and the General
Partner incentive," said Patrick D. Daniel, President & Chief
Executive Officer of Enbridge.
"The southern Illinois assets being acquired directly by Enbridge
involve a small investment but play an important role within our
overall market access initiative. This initiative is intended to
enhance value to Canadian producers by providing access to new
markets for their crude oil. The Woodpat Pipeline will complement
the previously announced Spearhead and Southern Access Pipelines
by providing an additional connection to Patoka. From Patoka we
plan to provide enhanced access to new markets in eastern PADD
II. Patoka is also one of the potential jumping off points for
alternative paths to new markets on the U.S. Gulf Coast, to which
we are planning to develop access."
"The storage facility at Patoka also fits well. It will provide
increased operational flexibility and term storage options for
shippers wishing to access these new markets either through the
Woodpat Pipeline, or through our existing Mustang Pipeline joint
venture which runs from Chicago south to Patoka."
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.
-30-