CALGARY, ALBERTA--(Marketwire -09/12/11)- Enbridge Inc. (TSX: ENB.TO - News) (NYSE: ENB.TO - News) announced today that it will twin the southern section of its Athabasca Pipeline from Kirby Lake, Alberta to the Hardisty, Alberta crude oil hub at an estimated cost of approximately $1.2 billion. The twin line will initially add approximately 450,000 barrels per day (bpd) of capacity between these points, with low cost expansion potential to 800,000 bpd. The line is expected to be capable of accepting initial volumes by early 2015, with its full initial capacity available by 2016.
The new line will include approximately 345 kilometers (210 miles) of 36-inch pipeline largely within the existing Athabasca Pipeline right-of-way. The new line is designed to accommodate the need for additional capacity to serve Kirby area oil sands growth, beyond the expansion of the existing 30-inch pipeline to its maximum capacity of 570,000 bpd which was announced in the fall of 2010. Transferring existing Kirby area volumes to the new 36-inch line from the existing 30-inch line will also free up the latter to accommodate additional long-haul volumes originating from the Cheecham or Athabasca terminals further upstream on the Athabasca System.
"Twinning our Athabasca system south of Kirby represents a highly efficient solution to the needs we are seeing for additional long-haul and short-haul capacity into Hardisty, leveraging off the advantages of our existing asset base and right-of-way," said Stephen J. Wuori, President, Liquids Pipelines. "While anchored by the needs of our current connected projects, it is readily expandable to accommodate new projects which are also expected to require pipeline capacity beginning mid-decade. This project is a significant part of our overall plan to provide capacity for rapidly growing production from the Kirby area as well as from growth projects further north in the Athabasca region."
Mr. Wuori noted that the project is expected to deliver significant local benefits.
"Based on our recent construction experience, we expect to create about 545 person years of employment in building the twinning project," said Mr. Wuori. "As we move through construction, those crews will be purchasing goods and services, as well as housing and food from local retailers. Once in operation, the pipeline will generate significant tax revenues for communities along the right-of-way."
With the twinning project, Enbridge will have a total of $3.6 billion of planned expansions of or additions to its Regional Oil Sands System which will go into service between 2011 to 2015, as well as a significant portfolio of additional projects which are under development to meet oil sands growth.
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
-- 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
-- 380-kilometre (235-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
-- 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 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 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 6,400 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 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.