CALGARY, ALBERTA--Enbridge Inc. today announced that it is
purchasing natural gas gathering, treating and transmission assets
in south Texas from a unit of Williams (NYSE: WMB).
Enbridge will acquire 792 kilometres (492 miles) of gas mainlines
regulated by the Federal Energy Regulatory Commission and 480
kilometres (298 miles) of non-FERC regulated assets including
gathering systems and pipeline laterals. Closing of the
acquisition is subject to regulatory approvals including approval
by FERC to remove the mainlines from jurisdiction under the
Natural Gas Act.
The acquisition, for US$50 million, is the first to be completed
by Enbridge's recently created Transportation Group South, which
is based in Houston and has overall responsibility for Enbridge's
U.S. business activities. The assets will be owned and operated
by Enbridge's wholly owned subsidiary, Enbridge Midcoast Energy
Inc.
"Acquisition of these assets enables Enbridge to further expand
its geographic footprint and scale of operations," said Dan C.
Tutcher, Enbridge Group Vice President, Transportation Group
South. "It levers off the expertise that Enbridge Midcoast Energy
has developed in gas gathering, processing and transportation, and
enhances our position in the active Gulf Coast region. In
addition to its strategic value, we expect the acquisition to be
immediately accretive to Enbridge earnings, and to have potential
for future expansion."
The mainline assets include two pipelines that run from close to
the Texas-Mexico border near Laredo and McAllen to Transco Station
30 where they connect with the Williams Transco mainline, which
has connections at the Katy hub and continues on to the U.S.
Southeast and Northeast.
The non-FERC regulated assets include a 210-kilometre (130-mile)
gathering system with a 90 million cubic feet per day capacity
sour gas treatment plant and 78 ton per day sulphur recovery
facilitity; 210 kilometres (130 miles) of other gathering
laterals; a currently inactive processing plant in Bee County with
capacity of 60 million cubic feet per day; and a 61-kilometre
(38-mile) lateral connecting the two FERC-regulated mainlines.
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 pipeline system. The
Company also is involved in international energy projects, and has
a growing involvement in natural gas transmission and midstream
businesses. As a distributor of energy, Enbridge owns and
operates Canada's largest natural gas distribution company, which
provides gas and retail services in Ontario, Quebec and New York
State. The Company is developing a gas distribution network for
the province of New Brunswick; is involved in the distribution of
electricity; and provides retail energy products and services to a
growing number of Canadian and U.S. markets. Enbridge 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 under the symbol "ENB" and on the NASDAQ
National Market in the U.S. under the symbol "ENBR". Information
about Enbridge is available on the Company's web site at
This news release includes forward-looking statements regarding
future events and the future financial performance of Enbridge.
All forward-looking statements are based on Enbridge's beliefs as
well as assumptions made by and information currently available to
Enbridge. When used herein, words such as "believes," "expects,"
"intends," "forecasts," "projects," and similar expressions,
identify forward-looking statements. These statements reflect
Enbridge's current views with respect to future events and are
subject to various risks, uncertainties and assumptions pertaining
to operating performance, regulatory parameters, commodity prices,
weather and economic conditions and, in the case of pending and
proposed projects, risks relating to design and construction,
regulatory processes, financing and performance of other parties,
including partners, contractors and suppliers and other risks
discussed in Enbridge's regulatory filings, including its Annual
Information Form and Annual Report for the year ended December 31,
2000. If one or more of these risks or uncertainties materialize,
or if the underlying assumptions prove incorrect, actual results
may vary materially from those described in the forward-looking
statement. Except as required by applicable securities laws,
Enbridge does not intend to update these forward-looking
statements.