CALGARY, ALBERTA--(Marketwired - Jan. 29, 2014) - Enbridge Income Fund (the "Fund") (ENF.TO) has approved the construction of a pipeline interconnection between the Enbridge Pipelines (Saskatchewan) Inc. system and a crude oil rail terminal near Cromer, Manitoba owned by Tundra Energy Marketing Limited (Tundra). The connection is expected to be in service in the fourth quarter of 2014. It will be capable of delivering segregated batches of either light sweet, light sour or Midale crude oil from the Westspur and Bakken Expansion pipelines into Tundra's rail terminal, which is directly served by CN Rail. The rail terminal is currently capable of handling 30,000 barrels per day (bpd) with an ultimate capacity in excess of 60,000 bpd.
The cost of the project is estimated at $25 million and will be fully backstopped by Tundra under a five-year Financial Support Agreement (FSA). Under the terms of the FSA, the Fund has an option to purchase 50 per cent of Tundra's rail terminal at a later time subject to certain terms and conditions.
"This connection is an attractive, low risk investment opportunity for the Fund, and the option to become a partner in the rail terminal provides potential future growth," said Perry Schuldhaus, President of Enbridge Income Fund Holdings Inc. "The interconnection investment complements the Fund's extensive liquids pipeline asset base in Saskatchewan and Manitoba and provides our customers with transportation optionality and enhanced access to premium downstream markets."
About Enbridge Income Fund
Enbridge Income Fund (the "Fund") is an unincorporated, open-ended trust created to provide a stable and sustainable flow of distributable cash to unitholders. The Fund, with an enterprise value of approximately $5 billion, owns assets that include crude oil gathering pipelines in Saskatchewan and Manitoba and crude oil storage terminals and caverns near Hardisty, Alberta, as well as interests in renewable and alternative power generation assets in Alberta, Saskatchewan and Ontario with a combined capacity of 524 megawatts (MW). The Fund also holds a 50 per cent interest in the Canadian segment of the Alliance Pipeline that transports high-energy natural gas from northeastern British Columbia and northwestern Alberta to delivery points near Chicago, Illinois. Public investment in the Fund is available through Enbridge Income Fund Holdings Inc. (the Company). The Company is a publicly traded corporation that has a 40.8 per cent economic interest in the Fund. The Company trades on the Toronto Stock Exchange under the symbol "ENF". Further information about Enbridge Income Fund and Enbridge Income Fund Holdings Inc. is available at www.enbridgeincomefund.com.