September 28, 2000
Beginning in late 2002, Enbridge will transport up to 30,000 barrels per day of heated bitumen that Petro-Canada will produce from its MacKay River steam-assisted gravity drainage (SAGD) project near Fort McMurray to the Enbridge Athabasca Pipeline Terminal. At the terminal, the bitumen will be blended with diluent and up to 60,000 barrels per day of blended product will be transported to Hardisty, Alberta via the Athabasca Pipeline.
Enbridge will spend approximately $55 million to build a 40-kilometre insulated pipeline from the MacKay River lease to the Athabasca Pipeline Terminal north of Fort McMurray, and for new equipment at the terminal and on the Athabasca Pipeline.
Enbridge Inc. Group Vice President, Transportation, J. Richard Bird said the agreement highlights Enbridge's customer and market-driven approach. "Oil sands operators need a pipeline transportation partner that can accommodate their needs and deliver their product to market. This is a good fit for Enbridge and it increases our presence as a key player in the ongoing growth of oil sands production in Alberta."
"Petro-Canada is pleased to team up with Enbridge on this project," said Brant Sangster, Petro-Canada's Vice-President, Oil Sands. "We sought a partner to provide reliable and cost-effective transportation for the production from our MacKay River development. With Enbridge's core competencies in pipeline construction and operation, our requirements are in good hands."
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, Alberta. The pipeline has an initial operating capacity of 100,000 barrels of product per day. With a 570,000-barrel-per-day capacity, the 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. 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 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; and is involved in the distribution of electricity. In addition, Enbridge provides retail energy products and services to a growingnumber of Canadian and U.S. markets. The company employs approximately 5,500 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.
Petro-Canada is a major Canadian oil and gas company and a leader in the Canadian petroleum industry. Its portfolio of businesses spans both the upstream and downstream industry sectors and include: oil exploration, development and production offshore Newfoundland; oil sands production and development in northern Alberta; natural gas exploration and production in Western Canada; refining and marketing of petroleum products, including lubricants. Petro-Canada shares trade on the Toronto Stock Exchange under the symbol PCA, and on the New York Stock Exchange under the symbol PCZ.
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