CALGARY, ALBERTA--Enbridge Inc. (TSE/NYSE: ENB) has agreed to
purchase natural gas gathering and processing facilities in
Northeast Texas from Sulphur River Gathering L.P. for US$178
million. The Sulphur River facilities, which currently gather
approximately 210 million cubic feet per day (mmcf/d) of natural
gas, are contiguous with assets in East Texas recently acquired by
Enbridge Energy Partners (NYSE:EEP). The acquisition increases
the portfolio of assets available to Enbridge for potential sale
to the Partnership in 2002.
"This acquisition furthers our objective to increase Enbridge's
North American footprint," said Dan C. Tutcher, Group Vice
President, Energy Transportation South, Enbridge Inc. "The
Sulphur River facilities are highly complementary with our
existing asset base in the Gulf Coast region and provide another
link in our strategy to increase the scale and scope of our U.S.
operations. Since the acquisition of Midcoast Energy Resources in
May of 2001, we have been actively pursuing opportunities that
will position us for profitable growth."
The Sulphur River facilities include 1,100 miles of natural gas
gathering pipelines, six gas treating plants with an elemental
sulphur capacity of more than 900 long tons per day, three gas
processing plants with a capacity of 245 mmcfd, and two nitrogen
rejection plants with a capacity of 75 mmcfd.
The acquisition is expected to close in early March, subject to
customary regulatory approvals, and the Sulphur River facilities
will become a part of Enbridge's Houston-based Transportation
South business group.
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. The Company employs approximately 6,000
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.
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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