Enbridge Completes Acquisition of Interest in BP Cushing to Chicago Pipeline System
CALGARY, ALBERTA-- September 2, 2003 Enbridge Inc. announced today it has completed the acquisition of a 90% interest in the Cushing to Chicago Pipeline System (CCPS) from BP Pipelines North America Inc. for US$122 million. Subject to acceptance of proposed tolling arrangements by Canadian producers and regulatory approval, Enbridge intends to reverse the flow of the 650-mile (1,050-km) pipeline by 2004, at a cost of approximately US$20 million. The reversed line, which would transport Canadian crude south from Chicago to Cushing, Oklahoma, would be renamed the Spearhead Pipeline. Enbridge's acquisition and planned reversal of the 22/24-inch diameter pipeline will provide Canadian producers and shippers with cost-effective access to new markets south of Enbridge's terminal near Chicago. CCPS has historically operated in south-to-north service with a capacity of 300,000 barrels per day, including 4.3 million barrels of tankage. If the necessary approval to reverse CCPS is not obtained, Enbridge and BP Pipelines will explore other options to maximize the value of the system. Enbridge's investment would be limited to US$57 million in this case, and BP Pipelines would be entitled, for a period of nine months, to repurchase Enbridge's 90% interest at a US$10-million discount. 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 United States, 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 United States and South America. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the United States under the symbol ENB. Information about Enbridge is available on the Company's web site at www.enbridge.com. BP Pipelines North America is the second largest liquids pipeline company in the United States transporting over 450 million barrel-miles of oil, refined products, natural gas liquids, carbon dioxide, and chemicals daily -- about 9% of the U.S. liquids pipeline market. For more information about BP Pipelines North America, visit www.bppipelines.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.