Enbridge Files Regulatory Application for Alberta Clipper Expansion Project

abarrelfullabarrelfull wrote on 20 Jan 2014 06:47

May 31, 2007

Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announced today that it has filed an application with the National Energy Board for the construction and operation of the Canadian segment of the Alberta Clipper Project, a proposed 1,607 kilometre (1,000 mile) expansion project to provide greater access for Western Canadian crude oil to U.S. Midwest markets. Alberta Clipper will be integrated with, and form part of the existing Enbridge Mainline liquid pipeline system in Canada owned by Enbridge Pipelines Inc., and the Lakehead System in the United States owned by affiliated Enbridge Energy Partners, L.P.

Based on industry support, Enbridge is progressing with land access, engineering and initial procurement commitments to facilitate commencement of construction in 2008. Alberta Clipper is expected to be in service by mid-2010, subject to finalization of commercial terms with industry, and regulatory approvals.

Alberta Clipper involves the construction of a new 36-inch diameter crude oil pipeline from Hardisty, Alberta to Superior, Wisconsin, generally within or adjacent to Enbridge's existing right-of-way. In Canada, the project is comprised of approximately 1,074 kilometres of new pipeline and related pump station and terminalling facilities. Alberta Clipper will have an initial capacity of 450,000 barrels per day (bpd) and allows for future expansions to 800,000 bpd. Based on final scope and cost estimates, the total construction cost of Alberta Clipper is expected to be approximately CDN$2.0 billion for the Canadian segment, and approximately US$1.0 billion for the U.S. segment to be undertaken by Enbridge Energy Partners, L.P. (in both cases, in 2007 dollars, excluding allowance for funds used during construction).

"Alberta Clipper will ensure that timely new pipeline capacity is available to meet producers' needs to transport growing supplies of crude oil from Alberta's oil sands and the Northern United States to refinery markets in the U.S. Midwest," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. "The combination of Alberta Clipper and Southern Access, which is currently under construction, can ultimately provide transportation capacity of up to 1.2 million bpd from Alberta to the U.S. Midwest."

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