|By Marketwired .||
|September 26, 2013 05:57 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 09/26/13 -- Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it will construct facilities and provide transportation services to the Japan Canada Oil Sands Limited (JACOS) Hangingstone Oil Sands Project (the Hangingstone Project). JACOS and Nexen Energy ULC, a wholly owned subsidiary of CNOOC Limited, are partners in the project, which is operated by JACOS. Enbridge and JACOS have entered into a long term agreement for transportation services from Cheecham to Edmonton on Enbridge's regional infrastructure. Commercial terms for the incremental facilities to connect Hangingstone to Cheecham have been agreed to but execution remains subject to finalization of the definitive agreements which are imminent.
The newly constructed pipeline will have the capacity to transport 40,000 barrels per day (bpd) of diluted bitumen produced at the Hangingstone Project to the Enbridge terminal in Cheecham, Alberta. First oil from the Hangingstone Project is expected in early 2016, with initial volumes of 18,000 bpd.
"Enbridge is pleased to enter into this agreement with JACOS and Nexen, which provides further confirmation of the sustainable growth in oil sands production," said Stephen J. Wuori, President, Liquids Pipelines and Major Projects. "This project, the tenth to connect into our infrastructure in the Athabasca region, will contribute to our ongoing strategy of connecting new oil sands projects and expanding access for production growth from the region."
Pending regulatory approvals, the execution of the definitive agreements, and stakeholder consultation, Enbridge plans to construct and operate a 50-kilometre (31-mile), 12-inch lateral pipeline to connect the Hangingstone Project to Enbridge's regional system at Cheecham. The scope also includes an optional 8-inch diluent line to transport diluent to the Hangingstone Project. The initial term of the transportation agreement is 20 years, with JACOS and Nexen having the right to extend the agreement in successive five-year terms.
Enbridge is committed to timely and meaningful dialogue with all stakeholders, including shareholders, customers, and employees, Aboriginal and Native American communities, governments, regulators, and landowners, among others, regarding all of our projects, operations and activities. Enbridge will ensure this project is constructed in an environmentally responsible manner with a focus on the safety of our employees and the community.
About Enbridge Inc.
Enbridge Inc., a Canadian Company, is a North American leader in delivering energy and has been included on the Global 100 Most Sustainable Corporations in the World ranking for the past five years. 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 more than 1,600 megawatts of renewable and alternative energy generating capacity and is expanding its interests in wind and solar energy and geothermal. 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's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
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 or otherwise.