CALGARY, ALBERTA--Enbridge Inc. today announced that it has
completed the acquisition of an approximately 9.6% interest in the
Alliance Pipeline from The Williams Companies Inc. for
approximately Cdn$179 million. The purchase does not include the
Williams interest in the Aux Sable NGL plant, which processes all
gas transported on the Alliance Pipeline, and Enbridge has not
assumed any of Williams' natural gas transportation commitments in
the pipeline. As a result of the acquisition, Enbridge has
increased its interest from approximately 21.4% to approximately
31.0%.
As previously announced, Enbridge also expects to acquire an
approximately 7.2% interest in the Alliance Pipeline from El Paso
Corporation for approximately Cdn$127 million. That transaction,
which is expected to close in the fourth quarter of 2002 except
for a small portion which will be deferred until the first quarter
of 2003, is expected to bring Enbridge's interest in the Alliance
Pipeline up to approximately 38.2%, which is expected to be equal
to that of the other largest owner, Fort Chicago Energy Partners.
The Alliance Pipeline is a 36-inch diameter pipeline with a
capacity of 1,550 million cubic feet per day of natural gas. It
extends 3000 kilometres from Fort St. John in British Columbia to
Chicago, Illinois. It employs a "high pressure dense phase"
technology to create higher transmission efficiency than
traditional conventional gas transmission systems. Alliance
commenced operations in late 2000. Enbridge was the first pipeline
company to invest in Alliance and, in conjunction with a number of
natural gas producers, seek to develop alternatives for accessing
U.S. markets.
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, which provides
distribution services in Ontario, Quebec and New York State; and
is developing a gas distribution system for the Province of New
Brunswick. 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
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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