Enbridge Inc.

Enbridge Inc.

November 02, 2007 17:29 ET

Enbridge to Develop Fort Hills Pipeline System

CALGARY, ALBERTA--(Marketwire - Nov. 2, 2007) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it has entered into an agreement with Fort Hills Energy, L.P. to develop pipeline and terminaling facilities to meet the requirements of Phase 1 and subsequent phases of the Fort Hills oil sands project. Construction of the Fort Hills Project and associated pipeline facilities remains subject to final approvals by the Fort Hills' partners and various regulatory approvals and permits.

"We are pleased to have been selected by the Fort Hills partners on the strength of our operating and pipeline development experience in the oil sands region," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. "The location of the project is an excellent fit with our existing facilities, and the planned execution timing aligns with the completion of our Waupisoo Pipeline and several large regional terminaling projects. The Fort Hills Pipeline project will be one of our largest projects and is expected to contribute continued earnings growth in 2011 and beyond."

The Fort Hills Project is an integrated oil sands development that includes a mine and bitumen extraction plant 90 kilometres north of Fort McMurray, Alberta, along with an upgrader in Sturgeon County northeast of Edmonton, Alberta.

The preliminary facilities plan for the Fort Hills Pipeline System includes a dedicated pipeline from the mine site north of Fort McMurray to the upgrader site in Sturgeon County, with an initial capacity of 250,000 barrels per day (bpd) of diluted bitumen. The system will also include a diluent pipeline with an initial capacity of 70,000 bpd of diluent, terminaling facilities at the mine site and Sturgeon County upgrader, and interconnecting pipelines linking the upgrader to the Edmonton pipeline hub.

The estimated cost of the pipelines and related facilities is approximately $2 billion with planned in-service dates in mid-2011, subject to finalization of scope and detailed engineering, and regulatory approvals.

Preliminary public consultation and environmental and engineering survey work is underway. Enbridge will be continuing comprehensive public and Aboriginal consultation as the project proceeds.

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 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, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 5,000 people, primarily in Canada, the U.S. and South America. 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.

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