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 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,
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
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
(403) 508-6563 or Toll Free: (888) 992-0997
Canopy Prospecting, Inc.
Vice President & General Manager
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