Enbridge to Invest $0.2 Billion to Connect Ninth Oil Sands Project
CALGARY, ALBERTA -- (Marketwire) -- 03/21/13 -- Enbridge Inc. (TSX:ENB)(NYSE:ENB) today announced that it has entered into an agreement to provide pipeline and terminaling services to the proposed Athabasca Oil Corporation ("AOC") Hangingstone Oil Sands Project (the "Hangingstone Project"). The Hangingstone Project will be the ninth oil sands project to be connected to Enbridge's regional system.
Enbridge will construct a new 50-kilometre (31-mile), 16-inch diameter pipeline from the Hangingstone Project to Enbridge's Cheecham Terminal, as well as completing modifications at Cheecham to support the incremental production. The project has an estimated cost of up to approximately $0.2 billion subject to finalization of scope, which will provide an initial capacity of 16,000 barrels per day (bpd) with provisions for expansion to accommodate up to a further 60,000 bpd from Phase 2 which is committed to the Enbridge regional system if sanctioned. The Phase I facilities are expected to be in service in the latter half of 2015.
"The attraction of the Hangingstone Project into our regional system confirms the competitive advantages of our existing asset base, reinforcing our expectations of additional growth from this segment of our business," said Stephen J. Wuori, President, Liquids Pipelines and Major Projects. "We're pleased to strengthen our relationship with AOC by delivering timely and innovative terminaling and transportation solutions for the development of their oil sands project."
Under the terms of the agreement, Enbridge will also provide pipeline transportation services to Edmonton on its Regional Oil Sands System for up to 16,000 bpd of diluted bitumen produced from Phase 1 of the Hangingstone Project. The initial term of the pipeline and terminaling agreement is 25 years, with AOC having the right to extend the agreement in successive five-year terms for a total contract life of 45 years.
Enbridge foresees filing an application with the Energy Resources Conservation Board (ERCB) and other regulatory authorities in May of 2013. Subject to the receipt of regulatory and environmental approvals, it is anticipated that the Project would begin right-of-way clearing in early 2014 and pipeline construction in the winter of 2014/2015.
Enbridge is committed to timely and meaningful dialogue with all stakeholders, including shareholders, customers, and employees, indigenous peoples, governments, regulators, and landowners, among others, regarding all of our projects, operations and activities. Enbridge will ensure this project is conducted in an environmentally responsible manner with a focus on the safety of our employees and the community.
About Enbridge Inc.
Enbridge Inc. is a North American leader in delivering energy and has been included on the Global 100 Most Sustainable Corporations in the World ranking for the past five years. 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, solar and geothermal energy. 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. 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.
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