|IF I might add a thought concerning this potential cash cow......|
large scale developement of the oilsands will only become feasable when new pipelines are laid to transport the oil to the west coast where it can be shipped to NEW MARKETS.currently the oil goes south to the chicgo area where there are "heavey oil" refineries...these refineries are already working at full capacity....at the moment any increase in production would have nowhere to go. apperently,as a result this oil is sold at a 20 dollar discount to light crude.
currently Enbridge(ENB) is trying to build one such pipeline......completion is progected around 2009
wheather or not it will be built will be decided in early 2006
Enbridge Files Preliminary Information Package for Gateway Project
NOV 2, 2005 - 07:30 ET
CALGARY, ALBERTA--(CCNMatthews - Nov. 2, 2005) - Gateway Pipeline Inc., a wholly owned subsidiary of Enbridge Inc. (TSX:ENB) (NYSE:ENB), has filed a Preliminary Information Package (PIP) with the National Energy Board, the Canadian Environmental Assessment Agency and other federal departments.
The PIP provides detailed information on the major elements of the Gateway Project as of October 2005. It is intended to inform potentially interested parties, and to permit federal regulators to define the regulatory review process to satisfy the requirements of the National Energy Board and the Canadian Environmental Assessment Agency.
A PIP filing does not constitute an application for regulatory approval. Such an application is planned for 2006, subject to the achievement of commercial feasibility, including satisfactory shipper commitments, as well as successful completion of engineering, environmental planning, and public and Aboriginal consultation. This timing would permit construction to commence in 2008 and the pipelines to begin service in 2010.
The Gateway Project is estimated to cost approximately $4 billion and will consist of a petroleum export pipeline and a condensate import pipeline along the same right-of-way, and a marine terminal.
The Gateway Petroleum Export Pipeline project will involve a new 1150-km (715-mile) 30-inch diameter pipeline with an initial capacity of approximately 400,000 barrels per day to transport petroleum from Edmonton to Kitimat. The Gateway Condensate Import Pipeline will be a 20-inch diameter pipeline capable of initially transporting approximately 150,000 barrels per day from Kitimat to Edmonton.
Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. 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 international operations and a growing involvement in the natural gas transmission and midstream businesses. 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. Enbridge employs approximately 4,400 people, primarily in Canada, the U.S. and South America. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol ENB. Information about Enbridge is available on the Company's web site at 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 that 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. 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.
BACKGROUND INFORMATION ON THE ENBRIDGE GATEWAY PROJECT
- The Gateway Project, estimated to cost approximately $4 billion, involves the proposed development of two new pipelines, a new marine terminal, tankage, pumping stations and related facilities.
- The Gateway Project will run from Strathcona County near Edmonton to Kitimat, British Columbia.
- Key factors in the decision to select Kitimat as the end-site location for the pipeline were the deep-water port and abundant industrial land.
- The pipeline will be 1150 kilometres in length.
- The petroleum export pipeline will be 30-inches in diameter and designed to move an average of 400,000 barrels per day.
- The condensate import pipeline will be 20-inches in diameter and designed to move an average of 150,000 barrels per day.
- Condensate is a by-product of natural gas production and is used as feedstock to oil refineries but its primary use in Western Canada is to dilute heavy oil for easier transport by pipeline.
- Certified marine tankers will be used to either import condensate or export petroleum. The marine terminal will include tankage, emergency response equipment, tanker births and other related facilities.
- Enbridge anticipates filing the National Energy Board application for the Gateway Project in the second quarter of 2006, beginning construction in 2008 and having the pipeline operational in 2010.
- The socio-economic benefits during construction of the project are estimated at $1.52 billion in BC and $1.26 billion in Alberta.
- During the operation of the Gateway Project, the socio-economic benefits are estimated at $107 million per year in BC and $60 million per year in Alberta.
- The Gateway Project is an important part of Canada's energy future and will help ensure there is enough capacity to transport new oil expected from Canada's oil sands in the years to come.
FOR FURTHER INFORMATION PLEASE CONTACT: Enbridge Inc.