Enbridge Inc.
TSX : ENB
NYSE : ENB

Enbridge Inc.

November 02, 2005 16:15 ET

Enbridge Announces Signing of Definitive Agreements to Provide Pipeline Transportation Services for the Surmont Oil Sands Project

CALGARY, ALBERTA--(CCNMatthews - Nov. 2, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it has entered into definitive agreements with ConocoPhillips Surmont Partnership and Total E&P Canada Ltd. (the Surmont Shippers) to provide lateral facilities and pipeline transportation services on its Athabasca Pipeline for the Surmont oil sands project.

Under the terms of the agreements, Enbridge will construct pipeline and tank facilities required by the Surmont Project, including a diluent lateral, a crude lateral, and tank facilities at the Cheecham terminal on the Athabasca Pipeline. The estimated cost of these facilities is $42 million with a planned availability for service date in mid-2006. Enbridge's 540-km Athabasca Pipeline will also require capacity expansion from the Cheecham-area terminal to its mainline terminal at Hardisty, Alberta.

The agreements provide for an initial contract volume of up to 50,000 barrels per day of crude oil. The agreement covering the dedicated Surmont lateral facilities and the agreement for transportation service on the Athabasca Pipeline are both for an initial term of 25 years, with extension provisions. The Athabasca Pipeline agreement also provides flexibility for the Surmont Shippers to transfer their production to the proposed Waupisoo Pipeline following its planned start-up in mid 2008.

Enbridge's Athabasca Pipeline, with ultimate capacity of 570,000 barrels per day, links its Athabasca Terminal, just south of the Suncor plant near Fort McMurray, to the company's Hardisty Terminal in Central Alberta. The pipeline serves Suncor and, via lateral pipelines, Petro-Canada, EnCana, and the Long Lake project operated by Nexen and OPTI Canada. The Athabasca Terminal has 1.5 million barrels of crude oil storage capacity. The Hardisty Terminal has storage capacity of 1.6 million barrels, with an additional 4 million barrels of storage capacity at the adjacent Hardisty Cavern storage facility, jointly owned by Enbridge and CCS Inc.

The Surmont Oil Sands Project is equally owned by ConocoPhillips, the operator, and Total. The project is located in the Athabasca oil sands area, approximately 60 kilometres southeast of Fort McMurray, Alberta.

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 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. 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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