Enbridge Inc.

Enbridge Inc.

January 19, 2006 08:00 ET

Enbridge Announces Agreement Between Aux Sable and BP to Sell Natural Gas Liquids Production

CALGARY, ALBERTA--(CCNMatthews - Jan. 19, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that Aux Sable Liquid Products LP and its affiliates, Aux Sable Canada LP, Aux Sable Extraction LP, Aux Sable Liquid Products Inc. and Aux Sable Canada Ltd. (collectively Aux Sable), have entered into a binding memorandum of agreement with BP Products North America, Inc. and affiliates for Aux Sable to sell all of its natural gas liquids (NGL) production at its facilities near Chicago, Illinois, to BP.

Under the agreement between BP and Aux Sable, BP will purchase all of the NGL produced by Aux Sable at its facilities near Chicago and in return pay Aux Sable a fixed annual fee and a percentage share of any net margin generated from the business in excess of specified thresholds. In addition, BP will compensate Aux Sable for all operating, maintenance and capital costs associated with the Chicago facilities, subject to certain limits in the case of capital costs. BP will supply, at its cost, all make-up and fuel natural gas to the Aux Sable facilities and will assume responsibility for the capacity on the Alliance Pipeline held by Alliance Canada Marketing, an affiliate of Aux Sable, and pay market rates to use this capacity.

The agreement will be for an initial term of 20 years commencing December 31, 2005, and may be extended by mutual agreement for 10-year terms on an evergreen basis. BP will have the option in certain limited circumstances to terminate the agreement if cumulative losses from the business exceed a specified amount, however Aux Sable retains the right to reduce such losses and thereby avoid termination.

"Enbridge, as a 42.7% owner of Aux Sable, is pleased with the agreement," said Stephen J. J. Letwin, Enbridge Group Vice President, Gas Strategy and Corporate Development. "It is consistent with Enbridge's overall risk profile in that it guarantees base profitability, as well as retaining upside from business in excess of the specified cash flow thresholds. It provides greater stability for Aux Sable's future earnings stream and allows Aux Sable to pursue other business in the NGL industry such as the development of new extraction facilities."

BP and Aux Sable will pursue the completion and execution of formal agreements incorporating the terms of the memorandum of agreement by March 31, 2006.

Enbridge, through affiliates, owns 42.7% of Aux Sable Liquid Products LP. Fort Chicago Energy Partners LP also owns 42.7% and The Williams Companies own 14.6%.

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 4,400 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 that 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. 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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