8-K

ENBRIDGE INC 8-K Report (Feb 2, 2015)

Filed February 2, 2015For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed an 8-K report on February 2, 2015, primarily to disclose a press release dated January 12, 2015. The key announcement is Enbridge's selection to build, own, and operate a crude oil pipeline lateral to serve the deepwater Gulf of Mexico Stampede development, operated by Hess Corporation. This project represents a strategic expansion for Enbridge into new deepwater crude oil plays and aligns with its low-risk business model, leveraging its existing offshore infrastructure and expertise. The Stampede lateral pipeline is projected to cost approximately $0.13 billion and is anticipated to be operational by 2018. The pipeline will be approximately 16 miles long, 18 inches in diameter, and will connect the Stampede development to an existing third-party pipeline system. This investment is expected to enhance Enbridge's significant presence in the Gulf of Mexico, where it already transports a substantial portion of the region's deepwater natural gas production.

Key Highlights

  • 1Enbridge will build, own, and operate a new crude oil pipeline lateral in the Gulf of Mexico.
  • 2The pipeline will serve the Stampede development, operated by Hess Corporation.
  • 3Projected cost for the Stampede lateral is approximately $0.13 billion.
  • 4The new pipeline is expected to be operational in 2018.
  • 5The project aligns with Enbridge's strategy to capture new deepwater Gulf of Mexico crude oil plays.
  • 6Enbridge has a significant existing presence in the Gulf of Mexico for natural gas transportation.

Frequently Asked Questions

The primary purpose of this 8-K filing is to formally report a press release announcing Enbridge's selection to construct and operate a crude oil pipeline lateral for the Stampede development in the Gulf of Mexico.

The Stampede lateral pipeline is estimated to cost approximately $0.13 billion and is expected to become operational in 2018.

This project is consistent with Enbridge's low-risk business model and furthers its objective to capture new deepwater Gulf of Mexico crude oil plays, leveraging its established offshore infrastructure and expertise in the region.

Enbridge already has a significant operational footprint in the deepwater Gulf of Mexico, transporting approximately 40% of the natural gas produced there and 45% of ultra-deep natural gas production. Its assets include interests in multiple natural gas gathering and transmission pipelines, as well as one existing crude oil pipeline.