June 22, 2001
Petroleum Limited have signed a Memorandum of Understanding for
Enbridge to provide crude oil transportation services for
PanCanadian's Christina Lake oil sands operation in northern
Alberta.
Beginning in late 2002, Enbridge will transport up to 10,000
barrels per day of blended bitumen from the first phase of
PanCanadian's Christina Lake Thermal Project located approximately
200 kilometres south of Fort McMurray, Alberta, to Enbridge's
Kirby Lake Pipeline Terminal. The crude will then be blended with
diluent and travel south on Enbridge's Athabasca Pipeline and
connecting with the Enbridge mainline at Hardisty, Alberta.
Enbridge will build two 26-kilometre lateral pipelines to connect
the Christina Lake project to the Kirby Lake Terminal, and
tankage, blending, and pumping facilities. The initial cost
estimate of the project is $35 million for the first phase, and
construction will begin following regulatory approval.
"PanCanadian's Christina Lake project is one of several oil sands
developments which are anticipated to come on stream over the next
several years, increasing throughput on both our Athabasca
Pipeline and the mainline system which it feeds," said J. Richard
Bird, Enbridge Group Vice President, Transportation North. "These
projects will provide Enbridge with additional opportunities to
invest in gathering and terminaling facilities, as well as
enhancing the profitability of our existing feeder and mainline
systems, and driving expansion of the mainline."
Mr. Bird also said, "Our arrangement with PanCanadian contemplates
that Christina Lake may expand in two additional phases requiring
further investment by Enbridge and providing still higher
throughput on the Athabasca Pipeline. PanCanadian will have the
right to ship up to 115,000 barrels per day of Christina Lake
heavy blend on the pipeline, in addition to the 60,000 barrels per
day committed to Petro-Canada's MacKay River project last fall and
the initial 170,000 barrels per day contracted to Suncor in 1998 -
which was the original impetus for construction of the line. It
is gratifying to see that the strategy of constructing the line
with ample capacity to accommodate additional shippers beyond
Suncor is beginning to pay off for both Enbridge and Suncor, as
well as our new shippers."
The 30-inch-diameter Athabasca Pipeline, which commenced service
in April 1999, is the only liquids pipeline directly linking the
Athabasca and Cold Lake Oil Sands deposits with the pipeline
transportation hub at Hardisty. The 570,000-barrel-per-day
capacity pipeline is well positioned to carry more of the region's
oil sands and heavy oil production in the future.
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 also is 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.