Enbridge Inc.

Enbridge Inc.

August 26, 2010 09:01 ET

Enbridge to Construct $370 Million Wood Buffalo Pipeline

CALGARY, ALBERTA--(Marketwire - Aug. 26, 2010) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it has entered into an agreement with Suncor Energy to construct a new, 95-kilometre (59-mile), 30-inch diameter crude oil pipeline (the "Wood Buffalo" Pipeline), connecting the Enbridge Athabasca Terminal, which is adjacent to Suncor's oil sands plant, to the Cheecham Terminal, which is the origin point of Enbridge's Waupisoo Pipeline. The Waupisoo Pipeline delivers crude oil from several oil sands projects to the Edmonton mainline hub.

The new pipeline will parallel Enbridge's existing Athabasca Pipeline between the Athabasca and Cheecham terminals. Suncor's existing commitments on the Athabasca Pipeline will remain in place. An application has been filed with the Alberta Energy Resources and Conservation Board (ERCB); pending regulatory approval, the new line is expected to be in service by mid 2013.

"Suncor was the anchor shipper that enabled our original entry into oil sands regional pipeline and terminaling infrastructure with the Athabasca Pipeline and terminal in 1999," said Stephen J. Wuori, Executive Vice-President, Liquids Pipelines, Enbridge Inc. "Today, our regional system includes both the Athabasca and Waupisoo pipelines providing dual hub capability to both Edmonton and Hardisty; lateral facilities connecting the Mackay River, Surmont, Long Lake and Christina Lake projects to the system; and over 4.4 million barrels of supporting operational tankage."

Today's announcement brings expansions and extensions of Enbridge's Regional Oil Sands System announced over the last year to a total of approximately $1.6 billion.

"We're building new facilities to meet the needs of the Imperial Oil/Exxon Mobil Kearl project, and we recently added Statoil's Leismer project as a shipper on the system. We are fortunate to have Suncor as a shipper, and to benefit from their continued oil sands growth and need for pipeline and terminaling services, including this latest opportunity," said Mr. Wuori. "As the largest operator of oil sands regional infrastructure, and with our corresponding ability to provide favourable and competitive transportation solutions to producers, we expect to see continued attractive investment opportunities of this sort for some time to come."

Enbridge's Regional Oil Sands System At-a-Glance:

Enbridge is the leading pipeline operator in the Fort McMurray to Edmonton/Hardisty corridor and well positioned to tie-in new oil sands developments to mainline pipelines and increase capacity for current customers. Enbridge's Regional Oil Sands Infrastructure includes the Athabasca and Waupisoo pipeline systems, connecting six producing oil sands projects. A map is available at www.enbridge.com.

Athabasca Pipeline:

-- 540-kilometre (335-mile) pipeline in operation since March 1999
-- Annual capacity of up to 570,000 barrels per day of crude oil (depending
on crude viscosity) from the Athabasca and Cold Lake regions of Alberta,
south to Hardisty, Alberta

Waupisoo Pipeline:

-- 380-kilometre (mile) pipeline system in operation since June 2008
-- Annual capacity of up to 600,000 bpd of crude oil (depending on crude
viscosity) from Enbridge's Cheecham Terminal to Edmonton


-- Largest operator of contract storage facilities at the Hardisty hub with
the 3.1 million barrel Hardisty Caverns storage facility, plus the 7.5
million barrel Hardisty Contract Terminal surface storage facility
-- More than 4.4 million barrels of operational storage associated with the
Waupisoo and Athabasca pipelines and laterals

Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations. 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, and is expanding its interests in renewable and green energy technologies including wind and solar energy, hybrid fuel cells and carbon dioxide sequestration. 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., and is ranked as one of Canada's Greenest Employers, and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit 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