ENBRIDGE EYES "SECOND WAVE" OF CAPITAL INVESTMENTS

Energy Processing Canada, Sep/Oct 2007

As it embarks on the largest capital program in its history, Enbridge Inc. is eyeing an additional $14 billion in potential liquids pipeline investment opportunities beyond 2011, Enbridge President and CEO Pat Daniel told investment analysts in early October. The company's current $12-billion five-year capital plan includes about $9 billion in liquids pipeline projects between now and 2011.

¶ Enbridge estimates the "second wave" of regional pipelines between 2011 and 2015 would have a capital cost of $4.8 billion on an unrisked basis (assuming it captures all the business) in addition to the $1.3 billion in risked capital it has already built into its five-year plan. The projects include Kearl (Imperial oil), Fort Hills (PetroCanada), Joslyn (Total); Sunrise (Husky Energy) and Borealis (EnCana Corp.) ¶ Enbridge believes it has a significant advantage in accessing these projects because it can offer the Athabasca, and soon, the Waupisoo pipelines, as interim measures until the projects ramp up and a larger regional line is needed. ¶ In other Enbridge news, the company has reached an agreement with Imperial oil on the terms and conditions of a new Transportation Service Agreement for Line 9, Enbridge's only westbound pipeline. Imperial is Line 9's largest shipper.