8-K

ENBRIDGE INC 8-K Report (Sep 1, 2010)

Filed September 1, 2010For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This Form 6-K filing by Enbridge Inc. (ENB) primarily contains two press releases dated August 24 and August 26, 2010, detailing significant pipeline expansion projects. The first release announces the Bakken Expansion Program, a joint initiative by Enbridge Energy Partners (EEP) and Enbridge Income Fund (ENF) to increase crude oil takeaway capacity from the Bakken and Three Forks formations by 145,000 barrels per day (bpd), expandable to 325,000 bpd, with an estimated cost of US$370 million for U.S. projects and Cdn$190 million for Canadian projects. This expansion is driven by growing production and has secured sufficient long-term shipping commitments from anchor shippers. The second release details the construction of the approximately $370 million Wood Buffalo Pipeline, a 95-kilometer, 30-inch diameter pipeline connecting Enbridge's Athabasca Terminal to its Cheecham Terminal in Alberta. This new pipeline, developed in partnership with Suncor Energy, will parallel the existing Athabasca Pipeline and is expected to be in service by mid-2013. These projects collectively represent substantial investments in expanding Enbridge's liquids transportation infrastructure to meet growing demand from key oil-producing regions.

Key Highlights

  • 1Enbridge, through its affiliates EEP and ENF, is launching a Bakken Expansion Program to increase crude oil takeaway capacity from the Bakken and Three Forks formations by 145,000 bpd, with potential to expand to 325,000 bpd.
  • 2The Bakken Expansion Program has an estimated cost of approximately US$370 million for U.S. projects (by EEP) and Cdn$190 million for Canadian projects (by ENF).
  • 3Sufficient long-term shipping commitments from anchor shippers have been secured, enabling the Bakken Expansion Program to proceed.
  • 4A new 95-km, 30-inch diameter Wood Buffalo Pipeline will be constructed in Alberta, connecting Enbridge's Athabasca Terminal to the Cheecham Terminal, at an estimated cost of $370 million.
  • 5The Wood Buffalo Pipeline project is a collaboration with Suncor Energy and is expected to be operational by mid-2013.
  • 6These projects, along with other recent expansions, bring Enbridge's total announced regional oil sands system expansions over the past year to approximately $1.6 billion.
  • 7The expansions aim to provide shippers with increased capacity, market alternatives, and enhanced connectivity to North American refinery hubs.

Frequently Asked Questions

This filing announces two major pipeline expansion projects: the Bakken Expansion Program, which will increase crude oil takeaway capacity from the Bakken and Three Forks formations, and the Wood Buffalo Pipeline, a new pipeline connecting Enbridge's Athabasca Terminal to its Cheecham Terminal in Alberta.

The Bakken Expansion Program has an estimated cost of approximately US$370 million for U.S. projects and Cdn$190 million for Canadian projects. The Wood Buffalo Pipeline is estimated to cost approximately $370 million.

The Bakken Expansion Program is expected to provide incremental capacity by Q1 2013. The Wood Buffalo Pipeline is expected to be in service by mid-2013.

Enbridge Inc. has a 27% ownership interest in Enbridge Energy Partners (EEP) and a 72% economic interest (41.9% voting interest) in Enbridge Income Fund (ENF), the affiliates undertaking the Bakken Expansion Program. Enbridge Inc. itself is undertaking the Wood Buffalo Pipeline project.