Enbridge to Partner in Delivering Bakken Crude by Rail to Philadelphia Refining Markets
CALGARY, ALBERTA -- (Marketwire) -- 11/26/12 -- Enbridge Inc. ("Enbridge") (TSX: ENB) (NYSE: ENB) today announced its U.S. subsidiary, Enbridge Rail (Philadelphia) L.L.C., has entered into an agreement with Canopy Prospecting Inc. ("Canopy") to create the Eddystone Rail Company to jointly develop a unit-train facility and related local pipeline infrastructure near Philadelphia, Pennsylvania to deliver Bakken and other light sweet crude oil to Philadelphia area refineries. The project is expected to handle 80,000 barrels per day (bpd) in the third quarter 2013 and can ultimately be expanded to receive up to 160,000 bpd for subsequent transport by barge or pipeline to nearby refineries as early as mid-2014.
Enbridge (EEP) will own 75% of the joint venture and serve as operator during construction and operation of the facility. The total estimated capital cost of the project is approximately US$68 million, including interest during construction. Project scope includes leasing portions of Exelon Generation's Eddystone power generation facility and reconfiguring existing track to accommodate 120 car unit-trains, installing crude offloading equipment, refurbishing an existing 200,000 barrel tank and upgrading an existing barge loading facility. Additional storage and pipelines connecting Eddystone to Philadelphia area refineries are under development.
"The Eddystone Rail Company will be the largest unit-train facility able to receive North Dakota Bakken and other light sweet crudes directly into Philadelphia area refineries" said Jack Galloway, President of Canopy Prospecting, Inc. "At nearly one million barrels per day, the region is second only to Houston in the concentration of light sweet refining capacity. Eddystone will be the first to provide access directly to those refineries from a rail facility."
In early 2013, Enbridge's Bakken Expansion Program will add 200,000 bpd of increased export pipeline capacity from the Bakken - 80,000 bpd into Berthold and 120,000 bpd into Cromer, Manitoba - taking Enbridge's total capacity from North Dakota to 475,000 bpd.
"Rail is the fastest way to provide increased export capacity out of the Bakken, creating a near-term solution to transportation bottlenecks and the resulting crude oil pricing differentials," said Stephen J. Wuori, President, Liquids Pipelines, Enbridge Inc. "Eddystone is an important step in our longer-term strategy to accommodate the anticipated growth of light crude oil supply and to provide Bakken producers and PADD I refiners cost-effective capacity to premium markets on the eastern side of North America.
"At the same time, Enbridge's Berthold and Eddystone rail projects will create employment and help the U.S. economy by delivering growing supplies of domestic crude to these once idle or under-utilized U.S. refineries, which have been dependent on more expensive foreign imports."
Enbridge will proceed with customary environmental, local and regulatory approvals to facilitate in-service in the third quarter of 2013. The company expects to begin stakeholder consultation for the Eddystone project in November 2012 and will share information and seek input from the community surrounding the rail facility. Enbridge is committed to safety and protecting the environment during each phase of project construction and operation.
About Enbridge Inc.
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 in 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 more than 10,000 people, primarily in Canada and the U.S. and is ranked as one of Canada's Greenest Employers and one of Canada's Top 100 Employers for 2013. Enbridge is included on the 2012/2013 Dow Jones Sustainability World Index and the Dow Jones Sustainability North America Index and is also a constituent of the 2012/2013 FTSE4Good Index Series. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
About Canopy Prospecting, Inc.
Canopy Prospecting, Inc. is a privately held Edgemont, Pennsylvania energy company focused on developing and operating niche petroleum midstream and process opportunities in the United States and the Caribbean.
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. Graham White Media (403) 508-6563 or Toll Free: (888) 992-0997 email@example.com Enbridge Inc. Larry Springer Media (877) 496-8142 firstname.lastname@example.org Enbridge Inc. Jody Balko Investment Community (403) 231-5720 email@example.com Canopy Prospecting, Inc. Erik Johnson Vice President & General Manager (610) 353-1401 firstname.lastname@example.org
Source: Enbridge Inc.