Enbridge to Invest $6.2 Billion in Light Oil Market Access

Enbridge to Invest $6.2 Billion in Light Oil Market Access Program 
CALGARY, ALBERTA -- (Marketwire) -- 12/06/12 -- Enbridge Inc.
(TSX:ENB) (NYSE:ENB), announced today that it has received shipper
support to proceed with a $6.2 billion program to expand access to
markets for growing volumes of North Dakota and western Canada light
oil production. The Light Oil Market Access Program (the Program)
will provide increased pipeline capacity on Enbridge's North Dakota
regional system; further expand capacity on the U.S. mainline system;
enhance Canadian mainline terminal capability; upsize the Eastern
Access Program and provide additional access to U.S. Midwestern
refineries. The Program will provide access from the Enbridge system
to attractive refinery markets in Ontario, Quebec and the U.S.
Midwest for an additional 400,000 barrels per day (bpd) of light oil. 
The Program includes a number of individual projects that will be
undertaken by Enbridge subsidiaries or affiliates including Enbridge
Energy Partners, L.P. ("Enbridge Partners" or "the Partnership")
(NYSE:EEP). Funding of the Program will be shared between Enbridge
and the Partnership through arrangements intended to enable Enbridge
Partners to benefit from a significant investment opportunity within
the limits of its funding capability. The Partnership's investment in
the $6.2 billion Program is expected to be approximately $3.4
billion.  
"This $6.2 billion investment rounds out our suite of major crude oil
new market access initiatives for North American markets," said Al
Monaco, President and Chief Executive Officer, Enbridge Inc. "It
follows on the heels of our $2.7 billion Eastern Access Program
announced in May, and our $5.8 billion upsized U.S. Gulf Coast Access
Program announced in March, including a number of projects adding
capacity to the existing mainline system announced in May. These
market access initiatives reflect changing North American supply and
demand fundamentals and will create significant value for our
customers. This latest investment meets the same stringent criteria
applicable to all Enbridge growth projects."  
The Light Oil Market Access Program responds to significant recent
developments with respect to supply of light oil from U.S. north
central formations and western Canada, as well as refinery demand in
the U.S. Midwest and eastern Canada. On the supply side, production
from the Bakken formation centered in North Dakota has grown from
200,000 bpd to 700,000 bpd in the last five years with potential to
expand to 1,200,000 bpd or more in the next five years, if
transportation access to refinery markets is available. Additional
growth in light crude production of 100,000 bpd or more is also
anticipated from the application of the latest recovery technologies
to the Cardium and Viking formations in Alberta, Canada. Supply from
these areas has become increasingly attractive to refineries in the
U.S. Midwest and eastern Canada compared to much more costly
alternative sources.  
The individual projects within the Program are targeted to be
available for service at varying dates from 2014 to early 2016.
Shippers have provided support for each of the individual projects
either in the form of capacity commitments or support for the
regulatory approval and commercial framework of the North Dakota and
Mainline system projects, including support for the regulatory
approval of the North Dakota expansion commercial terms pending
before the Federal Energy Regulatory Committee (FERC). The terms
approved by shippers for the U.S. mainline system expansion projects
include surcharges to be added to Enbridge's Competitive Tolling
Settlement (CTS) international joint toll. The Program will require
various regulatory approvals and permits. 
"We stand now with a total of $26 billion of commercially secured
attractive growth investments, which are planned to be in service
between 2012 and 2016, providing us with confidence that we will
achieve an average annual growth rate in earnings per share exceeding
10% through that year," said Mr. Monaco. "With a commercial model for
much of this capital, which provides increasing returns over time, we
are also on track to extend our industry-leading growth rate beyond
2016. 
"Effective execution of this growth program is a critical priority
and we are well positioned with the required human and financial
resources. Our Major Projects department remains on schedule and on
budget for substantially all projects currently under development. On
an enterprise-wide basis, we have raised more than $6 billion of
capital markets funding to date in 2012, and have expanded our
general purpose bank credit facilities to more than $12 billion." 
Enbridge is well underway in stakeholder consultations for some of
these projects and will soon begin consulting with landowners and
other stakeholders on other projects in earlier stages of planning.
"Our highest priority remains the safe, reliable and environmentally
responsible construction and operation of our energy infrastructure
assets, and our team remains focused on implementing our Operational
Risk Management Plan and demonstrating an industry-leading standard
of operating performance," said Mr. Monaco. 


 
                                            Light Oil Market Access Projects
                                     ---------------------------------------
                                        Estimated     In Service            
Project                                      Cost         Target     Funding
                                                                            
North Dakota System Expansion and                                           
 Extension                                                                  
                                                                            
  Sandpiper Project                        US$2.5     early 2016         EEP
                                          billion                           
                                                                            
Southern Access Extension                  US$0.8     early 2015         ENB
                                          billion                           
                                                                            
Eastern Access Upsize                                                       
                                                                            
  Line 9 Capacity Expansion                 C$0.1       mid-2014         ENB
                                          billion                           
                                                                            
  Line 6B capacity expansion               US$0.4     early 2016       Joint
                                          billion                  (ENB/EEP)
                                                                            
U.S. Mainline System Capacity                                               
 Expansions                                                                 
                                                                            
  Chicago Area Connectivity (Line 62       US$0.5       mid-2015       Joint
   Twin Flanagan to Griffith)             billion                  (ENB/EEP)
                                                                            
  Superior to Flanagan (Line 61            US$1.3     mid-2015 /       Joint
   capacity expansion)                    billion     early 2016   (ENB/EEP)
                        
                                                    
Canadian Mainline System                                                    
                                                                            
  Terminal Flexibility and                  C$0.6           mid-         ENB
   Connectivity                           billion     2015/early            
                                                            2016            

 
Conference Call 
Enbridge Inc. will host a webcast conference call to discuss its 2013
Guidance as well as the Light Oil Market Access Program as follows: 
Webcast Information 
Event: Enbridge Inc. 2013 Guidance Conference Call 
Date: Thursday, December 6, 2012  
Time: 2:30 p.m. Mountain Time / 4:30 p.m. Eastern Time  
Webcast Registration: sign-up 
Conference Call Information 
Dial-in #'s (Audio only - please dial in 10 minutes ahead if not
pre-registered) 
North America: 1-888-713-4213  
Outside North America: +617-213-4865 
Participant Passcode: 33022607 
Pre-Registration for Conference Call 
For participants wishing to pre-register for the conference call,
please click on this link.  
Pre-registration is not mandatory, but is recommended as it provides
immediate entry into the call and facilitates the timely start of the
conference. Once pre-registration is completed you will receive
online confirmation with a passcode and PIN. This information should
be noted or copied into your calendar as you will be prompted for
this information when dialing in on the day of the event. 
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,
visit www.enbridge.com.  
About Enbridge Energy Partners, L.P. 
Enbridge Energy Partners, L.P. (www.enbridgepartners.com) owns and
operates a diversified portfolio of crude oil and natural gas
transportation systems in the United States. Its principal crude oil
system is the largest transporter of growing oil production from
western Canada. The system's deliveries to refining centers and
connected carriers in the United States account for approximately 15
percent of total U.S. oil imports; while deliveries to Ontario,
Canada satisfy approximately 70 percent of refinery demand in that
region. The Partnership's natural gas gathering, treating, processing
and transmission assets, which are principally located onshore in the
active U.S. Mid-Continent and Gulf Coast area, deliver approximately
2.5 billion cubic feet of natural gas daily. Enbridge Energy Partners
is ranked as one of the 100 Most Trustworthy Companies in America. 
Enbridge Energy Management, L.L.C. (www.enbridgemanagement.com)
manages the business and affairs of the Partnership and its sole
asset is an approximate 13 percent interest in the Partnership.
Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of
Enbridge Inc. of Calgary, Alberta, (NYSE:ENB) (TSX:ENB)
(www.enbridge.com) is the general partner and holds an approximate 22
percent interest in the Partnership. 
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 and its affiliate EEP believe 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
the Canadian securities filings for ENB, and American SEC filings for
ENB and EEP. While Enbridge and EEP make 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 and
EEP assume 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. 
Enbridge Light Oil Market Access Program 
Background Information 
Enbridge's Light Oil Market Access Program (the Program) will provide
increased pipeline capacity on Enbridge's North Dakota regional
system; further expand capacity on the U.S. mainline system between
Superior, Wisconsin and the Chicago area; add capacity to the Eastern
Access Program; enhance Canadian mainline terminal capability and
provide additional access to U.S. Midwestern refineries. Together,
these projects will provide access to attractive markets in Ontario,
Quebec and the U.S. Midwest for an additional 400,000 barrels per day
(bpd) of light oil.  
North Dakota System Expansion/Extension (Sandpiper Project) 
The Bakken takeaway capacity of the Partnership's North Dakota System
will be expanded by 225,000 bpd to a total of 580,000 bpd, with a
target in service date of early 2016. The expansion will involve
construction of an approximately 965-kilometre (600-mile) 24-inch
diameter line from Beaver Lodge, North Dakota to the Superior,
Wisconsin Terminal. The new line will twin the 210,000 bpd existing
North Dakota System mainline, which now terminates at Clearbrook
Terminal in Minnesota, adding 225,000 bpd of capacity on the twin
line between Beaver Lodge and Clearbrook and 375,000 bpd capacity
between clearbrook and Superior. 
The estimated capital cost of this project is approximately $2.5
billion. The capital cost will be rolled into the existing North
Dakota System rate base, with the associated cost of service to be
recovered in tolls. The Sandpiper Project's commercial terms remain
subject to approval by FERC as filed in the Petition for Declaratory
Order filed with FERC on November 2, 2012. The commercial terms filed
with FERC have support from numerous shippers and stakeholders on the
North Dakota System. EEP will fully fund the Sandpiper Project. 
Eastern Access Upsize 
On May 16, 2012, Enbridge announced that it had secured sufficient
commercial support to proceed with additional aspects of its $2.7
billion Eastern Access Program, including full reversal of its Line 9
to provide crude oil supply from the Bakken and western Canada to
refineries in both Ontario and Quebec. An open season process was
subsequently held and additional commitments were received that will
require an additional 80,000 bpd of delivery capacity within Ontario
and Quebec at a cost of approximately $0.1 billion. This will bring
the total investment within Ontario and Quebec to $0.5 billion
including the reversal. 
The Eastern Access Program also includes supporting U.S. mainline
system expansions between Griffith, Indiana, and the border near
Sarnia, Ontario, which will require upsizing at an estimated cost of
approximately $0.4 billion. This brings the estimated total cost of
the Eastern Access supporting mainline expansions to $2.6 billion.
The upsized capacity and cost is supported by the Canadian
Association of Petroleum Producers (CAPP), representing Enbridge's
mainline shippers, for inclusion in the U.S. mainline system cost of
service surcharge mechanism. The additional cost will be included in
the Eastern Access Joint Funding Arrangement pursuant to which
Enbridge will fund 60% of the cost and EEP will fund 40%, with an
option to pare down by up to 15% and to claw back up to 15%. 
The upsized Line 9 reversal and supporting U.S. mainline expansion
capital brings the total Eastern Access Program estimated cost to
$3.2 billion including the $0.2 billion Toledo Pipeline expansion.  
Southern Access Extension Pipeline 
Enbridge will construct the 265-kilometre (165-mile), 24-inch
diameter Southern Access Extension Pipeline from Flanagan to Patoka,
Illinois at an estimated cost of approximately $0.8 billion, and a
target in service date of first quarter 2015. The initial capacity of
the line will be 300,000 bpd. Marathon Petroleum Company L.P.
(Marathon Petroleum) has contracted capacity on the pipeline in order
to access light crude oil supply off the Enbridge mainline for its
PADD II refineries. 
The terms of the Marathon Petroleum contract provide sufficient
commercial support to the project, but an open season will be held to
provide other potential shippers with an opportunity to secure
capacity. The capacity of the pipeline could be increased through
additional horsepower, and/or upsized to 30inch diameter if
substantial further commitments were received. Marathon Petroleum
will have an option to take up to a 25% interest in the pipeline. 
U.S. Mainline System 
Based on increased availability of western light oil supplies, and
attractive pricing relative to U.S. Gulf Coast sourced supply,
Chicago area refineries are shifting to western Canada and North
Dakota as their primary light oil supply source. To accommodate this
additional demand, as well as the additional Ontario and Quebec
demand, the capacity of the Lakehead System between Flanagan,
Illinois and Griffith, Indiana will be expanded by constructing a
122-kilometre (76-mile), up to 36-inch diameter twin of the existing
Line 62. The new line will have initial capacity of 570,000 bpd at an
estimated cost of approximately $0.5 billion, and a target in service
date of mid-2015. The capacity of the 42-inch diameter Line 61 from
Superior to Flanagan will also be expanded to its full 1,200,000 bpd
potential, together with related terminal modifications, at an
estimated additional cost of approximately $1.3 billion, with a
target in service date of mid-2015. 
These projects will be jointly funded by Enbridge and the
Partnership, under the terms of a Mainline Expansion Joint Funding
Arrangement, paralleling the Eastern Access Joint Funding
Arrangement. 
CAPP has approved inclusion of this additional mainline expansion
capital in the Lakehead System local toll cost-of-service surcharge
mechanism. 
Canadian Mainline System Terminal Flexibility and Connectivity 
In order to accommodate additional light oil volumes and enhance the
operational flexibility of the Canadian mainline terminals, an
upsized expansion program will be undertaken at an estimated cost of
approximately $0.6 billion., The Representative Shipper Group (RSG),
established under the terms of the mainline CTS, has approved
surcharges on the international joint toll provided for in the CTS
which are applicable to all mainline shipments which originate from
western Canada and are delivered to points east of Superior,
Wisconsin. A surcharge of $0.05 will apply to all such shipments
delivered to Flanagan and a surcharge of $0.12 to all other such
shipments. 
Contacts:
Enbridge Inc.
Graham White
Media
(403) 508-6563 or Toll Free: (888) 992-0997
graham.white@enbridge.com 
Enbridge Inc.
Jody Balko
Investment Community
jody.balko@enbridge.com 
Enbridge Energy Partners, LP.
Larry Springer
Media
(877) 496-8142
usmedia@enbridge.com 
Enbridge Energy Partners, LP.
Sanjay Lad
Investment Community
Toll-free: (866) EEP INFO or (866) 337-4636
eep@enbridge.com
 
 
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