HOUSTON, May 17, 2005 (PRIMEZONE) -- Enbridge Energy Partners, L.P. (NYSE:EEP) ("Enbridge Partners" or "the Partnership") today announced that one of its wholly owned subsidiaries has entered into a definitive agreement to transport up to 100,000 MMBtu per day of natural gas through the Texas intrastate pipeline system owned by Atmos Energy Corporation. The agreement will run for five years effective from the date of first deliveries, which are expected to commence in April 2006.
Enbridge Partners will invest approximately $19 million in facilities upstream and downstream of the Atmos Energy system to complete a new link from North Texas to the head of the Partnership's new natural gas transmission line at Bethel, Texas. This transmission line in East Texas has capacity of 500 MMcf per day and currently offers delivery service to two large interconnected pipeline systems, Houston Pipe Line Company and Natural Gas Pipe Line Co. of America. Construction of the final leg of the new transmission line is scheduled to be completed by the end of June, which will significantly increase access to the major pipeline and market hub at Carthage, Texas.
"This transportation agreement with Atmos Energy allows us to rapidly move ahead with our plan to increase market optionality for gas producers in North Texas. Production is growing strongly in this region due to increasing exploitation of the Barnett Shale zone. Therefore, our customers require additional and expanded market outlets to avoid saturating existing, mostly local, markets," said Dan C. Tutcher, president of the Partnership's management company and general partner. "The Partnership's East Texas transmission line was designed with a link from North Texas in mind. In future, this line can be very economically expanded to a capacity of 1.0 Bcf per day to accommodate continuing growth in natural gas supply that we anticipate in both North and East Texas."
LEGAL NOTICE
When used in this news release, words such as "anticipates", "expects", "plans", "will" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining to factors such as: (1) changes in the demand for, or the supply of, and price trends related to natural gas and natural gas liquids; (2) the effects of competition, including by other pipeline systems; (3) regulatory approvals; and (4) performance of other parties. Reference should also be made to Enbridge Partners' filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the most recently completed fiscal year, for additional factors that may affect results. These filings are available to the public over the Internet at the SEC's web site (www.sec.gov) and via Enbridge Partners' web site.
PARTNERSHIP INFORMATION
Enbridge Partners (www.enbridgepartners.com) owns the U.S. portion of the world's longest liquid petroleum pipeline and is active in natural gas gathering, processing and transmission. Enbridge Energy Management, L.L.C. (www.enbridgemanagement.com) manages the business and affairs of the Partnership, and its sole asset is an approximate 18 percent interest in the Partnership.
Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, is the general partner of Enbridge Partners and holds an approximate 11 percent effective interest in the Partnership. Enbridge Inc. (www.enbridge.com) common shares trade on the Toronto Stock Exchange and on the New York Stock Exchange under the symbol "ENB."