June 28, 2001
has received industry notification, as per the Terrace Agreement
between Enbridge and the Canadian Association of Petroleum
Producers, to proceed with the application for the third phase of
its Terrace Project to expand the capacity of its crude oil
pipeline system.
Terrace Phase III involves the construction of 193 kilometres (120
miles) of new 914-millimetre (36-inch) pipeline over five separate
construction segments on the Lakehead Pipe Line system between
Clearbrook, Minnesota, and Superior, Wisconsin. The project also
includes construction on the Canadian portion of the Enbridge
mainline system, for additional pumping stations and other
facility modifications to meet the new transportation capacity
requirement.
The CDN $450 million project will add approximately 140,000
barrels per day of incremental capacity to the pipeline system,
completing the Terrace Expansion Project first announced in 1997.
Of the total amount, CDN $135 million will be spent in Canada by
Enbridge, and US $200 million will be spent in the U.S. by
Lakehead Pipe Line Partners, L.P.
Regulatory applications will be filed with the National Energy
Board in Canada by the fourth quarter of 2001. The permitting
process in the U.S. is currently in progress. Following
regulatory approval, construction would commence in the U.S. as
early as January 2002, with an in-service date of mid-2003.
Patrick D. Daniel, President & Chief Executive Officer of
Enbridge, said, "The launch of the third phase of the Terrace
Expansion Project this week reflects a continued cooperative
approach between Enbridge and our crude oil shippers to initiate
mainline capacity expansions far enough in advance to be ready
when required. Phase III comes on the heels of Phase II and the
Line 14 Chicago extension project, which were both launched late
last year. These expansion calls by our shippers confirm the
outlook for strong growth in Western Canada crude oil production
over the next several years as large bitumen and synthetic oil
projects come on stream. Enbridge earnings from our crude oil
mainline will benefit significantly from the launch of Phase III,
beginning this year."
The Terrace Expansion is a phased approach to pipeline expansion,
with each phase proceeding as required by producers. The first
phase of the Terrace project involved the construction of 780
kilometres (485 miles) of new 914-millimetre (36-inch) pipeline
over 15 separate construction segments between Kerrobert,
Saskatchewan, and Clearbrook, Minnesota. The $825 million project
was completed in the spring of 1999 and added 170,000 barrels per
day of incremental capacity to the Enbridge mainline system.
"The Canadian petroleum industry is obviously rising to the
challenge of continued growth in demand for crude oil," said CAPP
President Pierre Alvarez, "and continued pipeline expansion is
clearly needed to meet the expected increase in heavy and oil
sands throughput."
The $120 million second phase of the Terrace project was recently
approved by the National Energy Board and involves the
construction of 123 kilometres (77 miles) of new 914-millimetre
(36-inch) pipeline over three separate construction segments
located between Enbridge's Hardisty, Alberta, terminal and its
Kerrobert, Saskatchewan, station. Construction is scheduled to
commence in the summer of 2001 and the expanded facilities are
expected to be in service by the first quarter of 2002. Terrace
Phase II will increase capacity on Enbridge's main system by
40,000 barrels per day.
Ultimately, the completed Terrace Expansion will provide an
additional 350,000 barrels per day of incremental system capacity
for Western Canadian producers seeking greater access to U.S.
Midwest markets.
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. As a
distributor of energy, Enbridge owns and operates Canada's largest
natural gas distribution company, which provides gas in Ontario,
Quebec and New York State; and is involved in the distribution of
electricity. The company is also involved in international energy
projects and has a growing involvement in the natural gas
transmission and midstream businesses. 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 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 www.enbridge.com.