CALGARY, ALBERTA--(CCNMatthews - June 20,
2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that U.S. subsidiary
Enbridge Offshore Pipelines, L.L.C. will extend its Gulf of Mexico pipeline
infrastructure by constructing a natural gas gathering lateral to connect the
deepwater Shenzi field to existing Gulf pipelines.
"The Shenzi lateral project, which follows the similar Neptune lateral
project announced last year, is another positive step in our strategy of
building on Enbridge's recently acquired deepwater offshore businesses in the Gulf of Mexico," said Doug Krenz, President of
Enbridge Offshore Pipelines. "It leverages existing Enbridge gas
infrastructure in the Gulf, positioning us for other opportunities in the
region."
Enbridge will construct and operate a gas lateral that will consist of 11 miles
of 12-inch diameter pipe and will have the capacity to deliver in excess of 100
million cubic feet per day.
The Shenzi discovery represents a major development relatively close to
Enbridge's existing Green
Canyon infrastructure.
The Shenzi development will provide a new natural gas supply source and
potential for additional supply sources for the existing Cleopatra, Manta Ray
and Nautilus offshore pipeline systems, all partially owned by Enbridge.
The Shenzi field is located approximately 120 miles from the coast of Louisiana in water
depths of approximately 4,300 feet. BHP Billiton will be operator of the field,
which has estimated recoverable reserves in the range of 350 million to 400
million barrels of oil equivalent: BHP Billiton has a 44% interest in the
field, BP Exploration & Production Inc. has 28%, and Hess Corporation has
28%. Development plans, costing approximately US$4.4 billion gross through the
year 2015, include drilling a number of subsea wells, and the wells, subsea
flowlines and other production facilities that will be operated by BHP Billiton
on behalf of the joint venture partners.
The lateral pipeline to be built by Enbridge is expected to be completed by
year-end 2007, with first gas expected by mid-year 2009.
Enbridge Offshore Pipelines provides Enbridge with wholly owned or joint
venture interests in 11 transmission and gathering pipelines in five major
pipeline corridors in Louisiana and Mississippi offshore waters of the Gulf of
Mexico. The system moves on average approximately 3 billion cubic feet per day
- approximately half of all deepwater Gulf of Mexico
natural gas production.
Enbridge Inc., a Canadian company, is a leader in energy transportation and
distribution in North America and
internationally. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest
crude oil and liquids pipeline system. The Company also has international
operations and a growing involvement in the natural gas transmission and
midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution
company, and provides distribution services to 1.8 million customers in the
provinces of Ontario, Quebec
and New Brunswick, and in New York State.
The Company employs approximately 4,600 people, primarily in Canada, the United
States and South America.
Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the
United States
under the symbol ENB. Information about Enbridge is available on the Company's
website at 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. 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.
