Enbridge Inc.

Enbridge Inc.

July 29, 2009 06:45 ET

Enbridge Announces US $500 Million Walker Ridge Gathering System for Ultra Deepwater Discoveries in Gulf of Mexico

HOUSTON, TEXAS AND CALGARY, ALBERTA--(Marketwire - July 29, 2009) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced it has entered into Letters of Intent with Chevron USA, Inc. which could result in the expansion of its central Gulf of Mexico offshore pipeline system. Under the terms of the LOI, Enbridge proposes to construct, own and operate the Walker Ridge Gathering System (WRGS) to provide natural gas gathering services to the potential Jack, St. Malo and Big Foot ultra deepwater developments. The estimated cost of the WRGS is approximately US $500 million, subject to finalization of scope and definitive cost estimates.

"The Gulf of Mexico has long been a major producing region for North American oil and gas, and there is a significant trend towards ultra deepwater developments in the Gulf of Mexico," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. "The Walker Ridge Gathering System will tie in a new supply source for Enbridge's Manta Ray and Nautilus offshore pipeline systems, enhancing Enbridge's existing offshore pipeline business and establishing a strategic base for future growth opportunities in the ultra-deep Gulf of Mexico. In addition, the development of the new gathering system represents an attractive investment opportunity itself, with risk and return characteristics comparable to Enbridge's normal business model."

Mr. Daniel continued, "This latest addition to our portfolio of commercially secured projects is indicative of a variety of growth opportunities which are currently under development, supporting our expectation that we will be able to extend our 10% plus 2008-2013 average growth rate at a similar rate well beyond 2013. Enbridge has ample financial capacity to fund the equity component of this investment from internally generated cash flow and surplus balance sheet equity."

The WRGS is expected to include approximately 190 miles of 8-inch,10-inch and/or 12-inch diameter pipeline at depths of up to 7,000 feet and will have a capacity of 100 million cubic feet per day (mmcf/d).

Enbridge offshore pipelines currently transport about 40 percent of all deepwater Gulf of Mexico natural gas production and include the UTOS, Stingray, Garden Banks, Nautilus, Manta Ray, Mississippi Canyon, Okeanos and Destin systems. Enbridge offshore assets include joint venture interests in 12 transmission and gathering pipelines in six major pipeline corridors in Louisiana, Mississippi and Alabama offshore waters of the Gulf of Mexico. The system moves on average approximately 30 percent of the Gulf of Mexico natural gas production at a rate of 2.5 billion cubic feet per day (bcf/d).

About Enbridge

Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also 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, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 6,000 people, primarily in Canada and the U.S. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol ENB. Information about Enbridge is available on the Company's web site at www.enbridge.com.

Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

Contact Information