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Enbridge And Ensyn Establish Alliance To Facilitate Heavy Oil Development

CALGARY, ALBERTA--January 8, 2002 - Enbridge Inc. today announced

a strategic alliance with Ensyn Group Inc. to facilitate the

development of Ensyn's heavy oil upgrading technology.

Ensyn has developed the use of Rapid Thermal Processing (RTP(TM))

for partial upgrading of bitumen and heavy oil at a pilot plant at

its research facility in Greely, Ontario. Ensyn currently uses

RTP(TM) in commercial biomass applications to produce chemicals,

liquid fuel and food flavoring.

"The alliance with Ensyn is consistent with our commitment to

pursue new energy technologies that have the potential for future

growth," said Stephen J. Wuori, Enbridge Group Vice President,

Planning & Development. "We believe Ensyn's RTP(TM) technology

has the potential to reduce diluent requirements for bitumen

transportation, broaden markets for bitumen and heavy oil, and

ultimately lead to additional expansion for both our mainline

system and the Athabasca Pipeline." Enbridge owns the Athabasca

Pipeline, which has the capacity to move 570,000 barrels per day

of heavy oil from the Alberta oil sands to the company's crude oil

mainline connection at Hardisty.

The alliance will facilitate the construction by Ensyn of a

demonstration plant scheduled for 2002 that could be capable of

upgrading 1,000 barrels per day. "Demonstration of a commercial

scale petroleum upgrading plant is an important next step for

Ensyn, and we now have the opportunity to install one at

Enbridge's Hardisty terminal," said Dr. Robert Graham, President

and Chief Executive Officer of Ensyn Group. "Enbridge's

contribution of this strategic location and their role as

technical advisor on transportation issues are important

contributions to the commercial development of the technology."

Ensyn Group Inc. is a U.S. corporation that produces and markets

renewable and alternative fuels and value-added products

manufactured from carbon-based feedstocks utilizing its

proprietary RTP(TM) technology. The first commercial RTP(TM)

facility was commissioned in 1989 and there are currently five

RTP(TM) facilities in commercial operation.

Enbridge Inc. is a publicly traded Canadian company and a leader

in energy transportation, distribution and services in North

America and internationally. The company operates, in Canada and

the U.S., the world's longest crude oil and liquids pipeline

system. It also owns and operates Canada's largest natural gas

distribution company serving approximately 1.5 million customers

in Ontario, Quebec and New York State. 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.

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