8-K

ENBRIDGE INC 8-K Report (Mar 1, 2013)

Filed March 1, 2013For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB), in a Form 6-K filing dated March 1, 2013, announced a significant joint venture with Energy Transfer to develop a new crude oil pipeline project. This project aims to provide crucial pipeline access for crude oil from the Patoka, Illinois hub to the highly sought-after eastern Gulf Coast refinery market. The venture involves converting existing natural gas pipeline segments owned by Energy Transfer's subsidiary, Trunkline Gas Company, LLC, into crude oil service. This initiative is strategically important as it addresses a significant market gap, offering the first pipeline transportation option for crude oil from the Midwest US to the eastern Gulf Coast. The project, expected to be in service by 2015, will span over 700 miles and have a substantial capacity of up to 660,000 barrels per day. Both Enbridge and Energy Transfer will hold a 50% stake in the joint venture, highlighting a collaborative effort to capitalize on the growing demand for North American crude oil by major refining centers.

Key Highlights

  • 1Enbridge Inc. and Energy Transfer entered into an agreement to jointly develop a crude oil pipeline project.
  • 2The project will convert existing natural gas pipeline segments owned by Trunkline Gas Company, LLC (a subsidiary of Energy Transfer) to crude oil service.
  • 3The pipeline will connect the Patoka, Illinois hub to the eastern Gulf Coast refining market.
  • 4This marks the first pipeline transportation option for crude oil to the eastern Gulf Coast from the Midwest U.S.
  • 5The project is expected to be in service by 2015 with a capacity of 420,000 to 660,000 barrels per day.
  • 6Enbridge and Energy Transfer will each own a 50% stake in the joint venture, contingent on certain conditions like open season commitments and due diligence for Enbridge.
  • 7The 700+ mile pipeline includes a new lateral to St. James, Louisiana, a major crude oil hub and access point for refineries and water-borne shipments.

Frequently Asked Questions

This Form 6-K filing by Enbridge Inc. primarily serves to report a significant press release dated February 15, 2013, detailing a joint venture agreement with Energy Transfer to construct a new crude oil pipeline.

The project is strategically important because it will provide the first pipeline access for crude oil from the Midwest U.S. (specifically the Patoka hub) to the large and valuable eastern Gulf Coast refining market, addressing a previously unmet logistical need.

Enbridge and Energy Transfer will each own 50% of the joint venture entity. Enbridge's participation is subject to securing a minimum level of commitments during an upcoming open season and completing due diligence. The project involves converting existing natural gas pipeline infrastructure.

The pipeline is expected to be in service by 2015. Its capacity is projected to range between 420,000 and 660,000 barrels per day, depending on the crude slate and subscription levels.