May 16, 2001
approved an application by Enbridge Pipelines to build the second
phase of the Terrace Expansion Program. Terrace Phase II is the
next stage of the multi-phase Terrace Expansion Program agreed
upon in 1997 between Enbridge and the Canadian Association of
Petroleum Producers.
Terrace Phase II consists of 123 kilometres (76 miles) of new
914-millimetre (36-inch) diameter pipeline over three separate
construction segments between Hardisty, Alberta, and Kerrobert,
Saskatchewan. The project connects existing sections of
1219-millimetre (48-inch) diameter pipeline, and extends the
894-kilometre (555-mile) fifth pipeline created in Phase I by a
total of 176 kilometres (109 miles). As part of the Terrace
expansion, Enbridge will also build two new pumping stations and
make various modifications to existing facilities and equipment.
Terrace Phase II will help meet pipeline transportation needs for
crude oil and petroleum liquids as forecast by the industry for
oil sands and other production from the Western Canadian
Sedimentary Basin. The $140 million project will expand Enbridge's
crude oil shipping capacity by about 40,000 barrels per day.
Enbridge's $610 million Terrace Phase I expansion between
Kerrobert and Gretna, Manitoba, that went into service in the
spring of 1999, added about 170,000 barrels per day of pipeline
capacity.
Subject to a Certificate of Public Convenience and Necessity being
issued by the NEB, Terrace Phase II work is expected to start in
June, with the facilities completed and in service by the
beginning of 2002.
"We're pleased that our application for Terrace Phase II has
received NEB approval, as we continue to develop and operate our
liquids pipeline system to meet the needs of our customers," said
J. Richard Bird, Enbridge Group Vice President, Transportation
Group North. "This expansion will increase producers' access to
domestic and export markets, including markets in the U.S. Midwest
which typically provide producers with higher commodity price
net-backs."
Enbridge Pipelines Inc. is a wholly owned subsidiary of Enbridge
Inc. of Calgary. Enbridge Inc. is a leader in energy
transportation, distribution and services. 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 to
1.5 million customers in Ontario, Quebec and New York State. The
Company is developing a gas distribution network for the province
of New Brunswick, and is involved in the distribution of
electricity. 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.