October 11, 2000
announced it will proceed in 2001 with the second phase of its
Terrace expansion project to expand the capacity of Enbridge
Pipelines' main system.
Terrace Phase II includes 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,
terminal. Terrace II will be constructed and operated by Enbridge
Pipelines Inc., a wholly owned subsidiary of Enbridge Inc.
Enbridge's decision to proceed with the Terrace Phase II project
follows an agreement with the Canadian Association of Petroleum
Producers. A regulatory application is expected to be filed with
the National Energy Board in early November 2000. Pending NEB
approval, construction would commence in the summer or fall of
2001 with an in-service date in the first half of 2002. The
project, which will cost an estimated $120 million, will increase
capacity on Enbridge's main system by 40,000 barrels per day,
bringing total mainline capacity in Canada to approximately 1.84
million barrels per day.
The Terrace expansion is a phased approach to pipeline expansion,
with each phase proceeding when requested 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 18 separate sections between Kerrobert, Saskatchewan and
Clearbrook, Minnesota. The Canadian portion of the project cost
approximately Cdn$600 million and the United States portion cost
approximately US$140 million. Terrace Phase I was completed in
the spring of 1999 and added 170,000 barrels per day of capacity
to the Enbridge mainline system.
Enbridge Inc. Group Vice President, Transportation, J. Richard
Bird, said, "The support of our customers for initiating the next
phase of our expansion program reflects a positive outlook for
Western Canada production growth, particularly for heavy crude and
synthetic oil production. This confirms our own assessment of the
growth prospects for the Canadian and United States main systems,
despite the near-term hiatus we are experiencing."
A decision to proceed with the third phase of the Terrace
expansion is subject to ongoing discussions with the producers.
Phase III involves the construction of 193 kilometres (120 miles)
of new 914-millimetre (36-inch) pipeline between Clearbrook,
Minnesota, and Superior, Wisconsin. It will add approximately
140,000 barrels per day of new capacity to the system.
Enbridge Inc. is a leader in energy transportation, distribution
and services. As a transporter of energy, Enbridge operates, in
Canada and the United States, the world's longest crude oil and
liquids pipeline system. The company is also involved in liquids
marketing and 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 gas in
Ontario, Quebec and New York State. Enbridge is currently
building a gas distribution network in 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 United States markets. The company employs
approximately 5,500 people, primarily in Canada, the United States
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
A map of the Terrace expansion program is available on the
Enbridge web site at www.enbridge.com/pipelines/growth.html