CALGARY, ALBERTA--September 29, 2003 - Enbridge Inc. today
announced that it has entered into an agreement to acquire an
additional 15% interest in the Vector Pipeline from Duke Energy
for US$72.5 million, including assumed debt of approximately
US$45.6 million. DTE Energy Company will also acquire a 15%
interest in Vector from Duke Energy for the same price.
Upon closing, Calgary-based Enbridge (NYSE/TSX: ENB) will own 60%
of Vector Pipeline; Detroit-based DTE Energy (NYSE: DTE) will own
the other 40%. Duke Energy will maintain its firm contracted
transportation commitments to the pipeline.
The Vector natural gas pipeline extends 348 miles (553
kilometres) from the Chicago-area market hub in Illinois to the
hub at Dawn, Ontario. The pipeline, which went into service in
December 2000, has capacity of 1 billion cubic feet per day,
which can be expanded to 1.5 billion cubic feet per day through
the installation of additional compression. Vector provides
take-away capacity for the Alliance pipeline, which is 50% owned
by Enbridge and its affiliates.
"This acquisition is consistent with our objective of increasing
Enbridge's investment in natural gas transmission assets," said
Patrick D. Daniel, President & Chief Executive Officer of
Enbridge. "Vector has good growth potential and provides a
critical transportation link between expected increased supply,
through the Chicago hub, and eastern Canadian and U.S. northeast
markets. Vector also complements our recently proposed Beacon
Pipeline project, which is designed to move an increasing supply
of Rockies gas to eastern markets through Chicago. Increasing
demand downstream of the Dawn hub will place Vector in a strong
competitive position to serve growing Canadian and U.S. northeast
demand."
The acquisition is immediately accretive to earnings per share
and is expected to close in early October, subject to customary
closing conditions.
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 gas 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.
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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