Enbridge Inc.
TSX : ENB
NYSE : ENB

Enbridge Inc.

September 07, 2010 09:00 ET

Enbridge to Provide Pipeline and Terminaling Services to Sunrise Oil Sands Project

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2010) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it has entered into an agreement to provide pipeline and terminaling services to the proposed, Husky operated Sunrise Oil Sands Project (the "Sunrise Project"). Enbridge will construct a new originating terminal ("Hartley terminal") at the Sunrise Project, a 112-kilometre (66-mile), 24-inch diameter pipeline from Hartley to Enbridge's Cheecham Terminal and additional tankage at Cheecham. The estimated cost of the project is approximately $475 million with an initial capacity of 90,000 bpd, expandable to 270,000 bpd. The facilities are expected to be in service in the latter half of 2013. 

"We are very pleased to add the Sunrise Project to our roster of oil sands projects committed to Enbridge's regional pipeline and terminal system. This will bring the number of oil sands projects connected to our system to eight by 2013," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. "The Sunrise commercial arrangements are similar to those recently concluded with both Suncor and the Christina Lake project in that Enbridge will benefit from an attractive investment in new facilities and from increased volumes on existing facilities. The investment will be accretive to earnings per share in 2013."

Mr. Daniel added, "This new project brings expansions and extensions of Enbridge's Regional Oil Sands System announced in the last year to a total of approximately $2.3 billion. This string of investments reflects our strategy to capitalize on regional pipeline and terminaling opportunities and further solidifies our competitive position as the largest pipeline operator in this oilsands region."

Under the terms of the agreement, Enbridge will also provide pipeline transportation services on its existing Regional Oil Sands System for up to 90,000 barrels per day of diluted bitumen produced from Phase 1 of the Sunrise Project. All of these arrangements remain subject to the final sanctioning of the Sunrise Project. The initial term of the pipeline and terminaling agreement is 20 years with Husky having the right to extend the agreement in successive five year terms for a total contract life of 45 years. Enbridge and Husky will share equally in net revenues from third party volumes transported in the line.

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 sand 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

Tankage:

  • 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

About Enbridge Inc.

Enbridge Inc., a Canadian company, is a North American leader in delivering energy. 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. 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.

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