Enbridge Upsizes Capacity of U.S. Gulf Coast Access Projects
HOUSTON, TEXAS and CALGARY, ALBERTA -- (Marketwire) -- 03/26/12 -- Enbridge Inc. (NYSE: ENB) (TSX: ENB) ("Enbridge") today announced that it is upsizing the capacity of its U.S. Gulf Coast Access projects. The Flanagan South Pipeline from Flanagan, Illinois to Cushing, Oklahoma will be upsized to a 36- inch diameter line with an initial capacity of 585,000 barrels per day (bpd). In a separate announcement today, Enbridge (EEP) and its partner Enterprise Products Partners L.P. indicated that they will twin their jointly owned Seaway Pipeline from Cushing to the U.S. Gulf Coast at Houston, with an extension to Port Arthur/Beaumont, adding 450,000 bpd of capacity to that system.
The total estimated cost of the Flanagan South Pipeline project, as a result of the larger capacity and pipeline size, has increased from the original $1.9 billion to $2.8 billion. In addition, the Enbridge share of the cost of the Seaway Pipeline twin line and extension is expected to be approximately $1.0 billion.
The increased Flanagan South Pipeline and Seaway Pipeline capacity is required to accommodate additional commitments for Gulf Coast service, originating from both Flanagan and from Cushing, received through recently completed second open seasons. Commitments for service from Flanagan have terms of 10, 15 or 20 years. The full initial capacity of the Flanagan South Pipeline is contracted for these terms apart from the mandatory 10 percent minimum required by the Federal Energy Regulatory Commission. Should additional needs arise, the line can be expanded to 800,000 bpd through the addition of low cost pumping capacity. The Flanagan South Pipeline is expected to be in service by mid-2014.
Upon completion of the reversal and expansion of Seaway, shippers can secure seamless transportation rates on the Enbridge and Seaway systems to reach refineries along the U.S. Gulf Coast.
"Enbridge's Gulf Coast Access projects give Bakken and western Canadian producers timely, economical and reliable options to deliver a variety of crudes to refinery hubs throughout the heart of North America and now as far as the Gulf Coast," said Patrick D. Daniel, Chief Executive Officer, Enbridge Inc. "The upsized new Flanagan South Pipeline, combined with our existing Spearhead Pipeline System, will offer shippers 775,000 bpd of capacity from Flanagan to Cushing, with the Seaway Pipeline System reversal and expansion offering capacity of 850,000 bpd from Cushing to the Gulf Coast. The commitments secured in these open seasons will support additional infrastructure to meet the growing transportation needs of these producers and the U.S. Gulf Coast refiners, contributing to North America's energy security into the foreseeable future."
The Flanagan South Pipeline will be constructed along the route of Enbridge's existing Spearhead Pipeline between the Flanagan Terminal, southeast of Chicago, to Enbridge's Cushing Terminal in Oklahoma.
"Enbridge has been committed to safe and reliable operation of our pipelines for more than 60 years," said Mr. Daniel. "This same commitment will be inherent in the design, installation, and operation of our expansion projects. Communities located along the pipeline routes will benefit from property taxes over the life of the pipeline, as well as from the creation of high-paying construction and manufacturing jobs, and associated economic activity during construction."
Enbridge Inc. 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 significant and growing involvement in natural gas gathering, transmission and midstream businesses, and an increasing involvement in power transmission. 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. As a generator of energy, Enbridge has interests close to 1,000 megawatts of renewable and alternative energy generating capacity and is expanding its interests in wind and solar energy, geothermal and hybrid fuel cells. Enbridge employs approximately 6,900 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 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.
Contacts: Enbridge Inc. Jennifer Varey Media (403) 508-6563 or Toll Free: (888) 992-0997 firstname.lastname@example.org Enbridge Inc. Jody Balko Investment Community (403) 231-5720 email@example.com www.enbridge.com
Source: Enbridge Inc.