CALGARY, ALBERTA--Enbridge Inc. and CCS Inc. today announced a
partnership to develop underground cavern facilities to provide
crude oil storage services at Hardisty, Alberta. Under the MOU,
the partnership will initially focus on developing four existing
caverns that have the capacity to store 3 million barrels of crude
oil. The caverns, which are located on property acquired by CCS in
2001, will be supported by surface facilities including 250,000
barrels of conventional buffer tankage and 1500 metres of
connecting pipelines.
These storage facilities will be located adjacent to Enbridge's
main system pipeline terminal at Hardisty, from which they will
receive crude oil for storage and, when required, deliver it back
to the terminal for shipment. The partnership intends to provide
crude oil storage services through long-term, fee-based contracts
with third parties.
Each company is contributing its core expertise - Enbridge in
connecting pipelines and buffer tankage, and CCS in cavern storage
facilities. Enbridge is currently preparing an application to the
Alberta Energy & Utilities Board (EUB) in support of the new
buffer tank construction and interconnecting pipeline, which will
be filed with the EUB in July 2002. Pending EUB approval of the
project, construction is expected to start in the fall of 2002
with completion expected by summer of 2003.
"Our partnership will provide an important component of the
infrastructure required to support the continued development of
Alberta's crude oil resources," said J. Richard Bird, Enbridge
Group Vice President, Transportation North. "The property which
CCS brings to the partnership is ideally located to be
economically connected to our Hardisty Terminal, which is
strategically located at the junction of our main line system and
the major feeder lines from the Athabasca oil sands, including our
own Athabasca Pipeline."
"By developing this opportunity with Enbridge at the Canadian
heavy crude oil hub, our customers will have new marketing and
operational options with this unique storage project," said David
Werklund, CCS President and CEO. "No service company in Canada
today offers underground cavern storage services for crude oil
storage."
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 is involved in international energy projects and
has 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
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.
CCS is a dynamic, rapidly expanding Calgary-based oil and gas
service company, operating since 1984. Through its CCS Energy
Services division, the Company offers crude oil treatment,
terminaling and storage in Western Canada. CCS is also involved
with oilfield treatment, recovery and disposal solutions at 23
Canadian facilities. Through its Concorde Well Servicing division,
which employs 39 service rigs, the Company provides well
completions, workovers, and abandonments in Western Canada. The
CCS Income Trust Units are listed on The Toronto Stock Exchange
under the symbol "CCR.UN". Information about CCS is available on
the company's web site at www.ccsincometrust.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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