CALGARY, Alberta and HOUSTON, July 28, 2005 (PRIMEZONE) -- Enbridge Inc. (TSX:ENB) (NYSE:ENB) and Enbridge Energy Partners, L.P. (NYSE:EEP) (the "Partnership") today announced a successful conclusion to their Open Season to confirm shipper support for the Southern Access Mainline Expansion Program. Letters of support from shippers strongly endorsed the need to proceed with all three phases of the expansion concurrently, which will provide an additional 400,000 barrels per day (bpd) of crude oil capacity on the Enbridge mainline system from Hardisty, Alberta to Chicago, Illinois as early as 2009.
Negotiation of final contract terms with individual shippers, or the Canadian Association of Petroleum Producers on their behalf, as well as Canadian and U.S. regulatory approvals are key remaining expansion program milestones.
Richard Bird, Group Vice President Liquids Pipelines for both Enbridge and the Partnership said, "The Southern Access Program is a key component of our overall plan to facilitate access to new markets for expanding supplies of crude oil from the Alberta oil sands. The Program represents the lowest cost alternative for the capacity and market access required by our customers, even before expected cost savings of US$120 million that are achievable by completing the three phases within a reasonably tight timeframe. As well, the expansion will provide the shortest possible transit times, lowest shipper investment in line-fill, and greatest flexibility for storage and alternative delivery options."
Bird continued, "The Program is also good for U.S. refiners because it enhances their access to a secure and expanding source of crude oil supplies and will permit better segregation of crude types to greatly enhance the quality of crudes delivered from the Enbridge system."
The Canadian portion of the Southern Access Expansion Program from Edmonton to the international border near Neche, North Dakota, will be undertaken by Enbridge Pipelines Inc., the Enbridge subsidiary that owns the Canadian mainline system, at a cost of approximately US$135 million in 2005 dollars.
The U.S. portion of the expansion program, from the international border to Chicago, will be undertaken on the Partnership's Lakehead system (the U.S. mainline system), at a cost of approximately US$760 million in 2005 dollars, taking into consideration the expected savings of proceeding with all three phases concurrently. Tariffs for this portion of the expansion would be based on the Federal Energy Regulatory Commission's trended original cost model, including a 9% real return on equity.
The Open Season also sought non-binding indications of interest for the Southern Access Extension Project, involving an Enbridge Inc. extension from the Lakehead System near Chicago to Wood River and/or Patoka, Illinois. Enbridge was pleased with the initial support for the extension project and will continue detailed discussions to finalize the project's design and timing in preparation for a second, binding Open Season.
Additional information on the Southern Access Program has been posted in the "About Us" section on www.enbridgepartners.com.
ABOUT THE ENBRIDGE-LAKEHEAD MAINLINE SYSTEM
The Partnership's Lakehead System and affiliate Enbridge Pipelines system in Canada are operationally integrated. Together, the systems deliver approximately two-thirds of the crude oil produced in western Canada to refinery centers in the U.S. Upper Midwest and Canada. The Lakehead System spans approximately 1,900 miles in the United States, from the international border near Neche, North Dakota, to the international border near Marysville, Michigan, with an extension across the Niagara River into the Buffalo, New York area. The system is strategically located and provides low-cost and highly reliable delivery of crude oil and natural gas liquids to premium U.S. refinery markets, including Minneapolis-St. Paul, Chicago and Detroit-Toledo. In early 2006, the Lakehead System will have access to the Cushing Terminal, one of the largest crude transportation and storage hubs in North America, via the Spearhead pipeline (now undergoing reversal by Enbridge).
ABOUT ENBRIDGE ENERGY PARTNERS
Enbridge Energy Partners, L.P. (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. (NYSE:EEQ) (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., is the General Partner of Enbridge Partners and holds an approximate 11 percent effective interest in Enbridge Partners.
ABOUT ENBRIDGE
Enbridge Inc. (www.enbridge.com) is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. Enbridge also has international operations and 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 distribution services in the provinces of Ontario and Quebec, and in New York State; and is developing a gas distribution system for the Province of New Brunswick. Enbridge is a Canadian company and its common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the United States under the symbol ENB.
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 crude oil and natural gas liquids; including the rate of development of the Alberta Oil Sands; (2) changes in or challenges to Enbridge Partners' tariff rates; (3) the effects of competition, including by other pipeline systems; (4) regulatory approvals; and (5) 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.