CALGARY, ALBERTA--Enbridge Inc. has acquired an additional 34.03
per cent interest in the Frontier Pipeline Company from BP
Pipelines (North America) for US$28.9 million, raising Enbridge's
ownership in Frontier to 77.78 per cent.
The 16-inch, 65,000-barrel-per-day Frontier Pipeline carries
Canadian and U.S. Rocky Mountain crude oil from Casper, Wyoming to
the northeast border of Utah near Salt Lake City for ultimate
delivery into the Salt Lake City refining market.
"Increasing Enbridge's ownership in Frontier supports our strategy
to participate in a competitive corridor to serve the U.S. Rocky
Mountain regional market," said Dan Tutcher, Enbridge Group Vice
President, Transportation South. "Enbridge has been an owner of
Frontier Pipeline since its inception in 1983 and we are pleased
to now be the majority owner of the line. The Salt Lake City
refining market continues to be a viable market for Rocky Mountain
and Canadian crude and over time we believe that the fundamentals
of supply for the Rocky Mountain region will continue to support
the viability of Frontier Pipeline."
Mr. Tutcher added this transaction will put Enbridge in a positive
position within the region and continues to increase the size of
our footprint in various areas of the North American market.
The Frontier Pipeline Company is a general partnership. With
today's acquisition, Enbridge now holds 77.78 per cent of the
partnership. The Anschutz Corporation recently exercised its
purchase rights to acquire an additional 9.72 per cent of Frontier
from BP, increasing its interest in Frontier to 22.22 per cent. BP
Pipelines (North America), which has been the operator of
Frontier, plans to assign the operating agreement to Pacific
Energy Group LLC, a subsidiary of The Anschutz Corporation.
Enbridge Inc. is a leader in energy transportation, distribution
and services 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. In addition, Enbridge provides retail
energy products and services to a growing number of Canadian and
U.S. markets. 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.