CALGARY, ALBERTA--October 6, 2003 - Enbridge Inc. today announced
its affiliate, Enbridge Energy Partners, L.P., is launching a new
crude oil pipeline proposal to provide access from its existing
terminal at Superior, Wisconsin, south to the Wood River hub in
southern Illinois.
The new line will become part of the Lakehead Pipeline System of
Enbridge Energy Partners, L.P., which is partially owned and is
managed by Enbridge subsidiaries. Development of the line will
be subject to support by crude oil shippers, and regulatory
approvals.
The proposed 630-mile line (24 to 30 inches in diameter) will
have an initial capacity of 250,000 barrels per day, and will
cost US$550 - $650 million. It will interconnect with Enbridge's
recently announced Spearhead Pipeline, providing flexibility to
access tankage on Spearhead and to move to any of the Chicago,
Wood River or Cushing market hubs from the interconnection point
in Illinois. The line is expected to be in service in 2007,
allowing sufficient time for shipper and public consultation,
detailed route determination, environmental reviews and
regulatory approvals.
The new pipeline is intended to provide increased capacity on the
Lakehead system to accommodate growing production from the
Alberta oil sands. It is part of a broader Enbridge strategy to
provide greater access to new U.S. markets for growing Canadian
crude oil supplies.
Alberta's oil sands have recently been acknowledged by the U.S.
Energy Information Administration as having 180 billion barrels
of crude oil reserves.
"The proposed Southern Access Pipeline, together with our
previously announced Spearhead Pipeline joint venture, represent
major steps in furthering continental security of energy supply,"
said Patrick D. Daniel, President & Chief Executive Officer of
Enbridge.
"Canadian crude oil producers will benefit from stronger netbacks
associated with adequate export capacity and market
diversification. Refineries and their customers in the U.S.
Midwest and Mid-continent will benefit from improved access to
secure, reliable and growing supplies of crude oil from the
Alberta oil sands. The project will contribute significantly to
earnings growth for Enbridge Energy Partners, thus for Enbridge,
consistent with our objective of creating value for our investors
by creating value for our customers."
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.
Enbridge Energy Partners, L.P. (NYSE:EEQ)
(www.enbridgepartners.com) indirectly owns the U.S. portion of
the world's longest liquid petroleum pipeline and is active in
natural gas gathering, processing and transmission. Enbridge
Energy Management, L.L.C. (www.enbridgemanagement.com) manages
the business and affairs of the Enbridge Partners, and its
principal asset is an approximate 19% interest in the Enbridge
Partners.
Enbridge Energy Company, Inc., an indirect wholly owned
subsidiary of Enbridge Inc. of Calgary, Alberta, is the General
Partner of Enbridge Partners and in which it holds an approximate
13% effective interest.
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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