Enbridge Enters Into Alliance Agreement With Global Pipeline Partners to Construct Major Petroleum Pipeline Expansions

abarrelfullabarrelfull wrote on 11 May 2012 13:21
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Dec. 14, 2006

Enbridge Inc. (TSX:ENB) (NYSE:ENB), Enbridge Energy Partners, L.P. (NYSE:EEP) (collectively "Enbridge") and Global Pipeline Partners, LLC ("GPP") jointly announced today that they have entered into a three-year Alliance Agreement to construct new pipelines for 321 miles of the Wisconsin portion of the Enbridge Southern Access Program, 75 miles of early winter construction for Enbridge's Southern Lights project, and to jointly collaborate on future additional projects. Remaining work for these projects in Wisconsin and Illinois will proceed subject to appropriate regulatory and shipper approvals.

GPP is a partnership of four experienced pipeline construction contractors, including: Michels Corporation of Brownsville, Wisconsin; Precision Pipeline, LLC of Eau Claire, Wisconsin; U.S. Pipeline, Inc. of Houston, Texas and Welded Construction, L.P. of Perrysburg, Ohio.

"Enbridge and its many stakeholders have high expectations for the quality of workmanship, safety and environmental sensitivity in the construction and ultimate operation of these pipelines. We entered into the Alliance Agreement with this consortium of experienced pipeline construction contractors through a competitive process that recognized their prior experience and local knowledge of the area, dedication to innovation and continuous improvement in safety and environmental performance and strong relationships with regional labor resources," said Dale Burgess, project director for Enbridge.

"The Enbridge-GPP Alliance Agreement will mean that hundreds of skilled workers, many of whom are local residents in Wisconsin and Illinois, will work over the next three years on these major expansions to the nation's energy infrastructure," Burgess noted. "Overall, these projects and this construction contract are a win-win for workers, local contractors and consumers, who will benefit from this boost in the region's secure access to vital North American petroleum resources, while complying with environmental permits and safety standards."

Upon the execution of the Alliance Agreement, a spokesman for GPP added, "GPP is extremely pleased to have entered into this Alliance Agreement with Enbridge. This Alliance Agreement represents an unprecedented commitment designed to draw upon the strengths of both Enbridge and GPP to create an environment of innovation and continuous improvement in the areas of construction, environmental compliance and safety. We are hoping to get started with the winter work as soon as possible to maximize our productivity during this environmentally advantageous time."

The Alliance Agreement currently includes construction of 321 miles of 42-inch pipeline for the Southern Access, Stage 1 project and 75 miles of 20-inch pipeline for Enbridge's Southern Lights project that will be built concurrently and along the same route as the 42-inch pipeline. The Alliance Agreement also provides the opportunity for the parties to expand the scope of the agreement for further construction of the remaining 399 miles of Southern Lights 20-inch pipeline, an additional 133 miles of 42-inch pipeline for Stage 2 of Southern Access and 175 miles of 36-inch pipeline for the Southern Access extension project. These additional awards will be subject to acceptable performance by GPP on the initial construction work, final approvals of these projects by Enbridge, and approvals by the Canadian Association of Petroleum Producers and the applicable regulatory bodies.

Additional details on these Enbridge expansion projects, along with the Enbridge ownership of each segment, is available on Enbridge's project web site at www.enbridge-expansion.com


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