“We are very pleased to add the Sunrise Project to our roster of oil sands projects committed to Enbridge’s regional pipeline and terminal system. This will bring the number of oil sands projects connected to our system to eight by 2013,” said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. “The Sunrise commercial arrangements are similar to those recently concluded with both Suncor and the Christina Lake project in that Enbridge will benefit from an attractive investment in new facilities and from increased volumes on existing facilities. The investment will be accretive to earnings per share in 2013.”
Mr. Daniel added, “This new project brings expansions and extensions of Enbridge’s Regional Oil Sands System announced in the last year to a total of approximately $2.3 billion. This string of investments reflects our strategy to capitalize on regional pipeline and terminaling opportunities and further solidifies our competitive position as the largest pipeline operator in this oilsands region.”
Under the terms of the agreement, Enbridge will also provide pipeline transportation services on its existing Regional Oil Sands System for up to 90,000 barrels per day of diluted bitumen produced from Phase 1 of the Sunrise Project. All of these arrangements remain subject to the final sanctioning of the Sunrise Project. The initial term of the pipeline and terminaling agreement is 20 years with Husky having the right to extend the agreement in successive five year terms for a total contract life of 45 years. Enbridge and Husky will share equally in net revenues from third party volumes transported in the line.
Enbridge’s Regional Oil Sands System At-a-Glance:
Enbridge is the leading pipeline operator in the Fort McMurray to Edmonton/Hardisty corridor and well positioned to tie-in new oil sand developments to mainline pipelines and increase capacity for current customers. Enbridge’s Regional Oil Sands Infrastructure includes the Athabasca and Waupisoo pipeline systems, connecting six producing oil sands projects. A map is available at www.enbridge.com
Athabasca Pipeline:
— 540-kilometre (335-mile) pipeline in operation since March 1999
— Annual capacity of up to 570,000 barrels per day of crude oil (dependingbon crude viscosity) from the Athabasca and Cold Lake regions of Alberta, south to Hardisty, Alberta
Waupisoo Pipeline:
— 380-kilometre (mile) pipeline system in operation since June 2008
— Annual capacity of up to 600,000 bpd of crude oil (depending on crude viscosity) from Enbridge’s Cheecham Terminal to Edmonton
Tankage:
— Largest operator of contract storage facilities at the Hardisty hub with the 3.1 million barrel Hardisty Caverns storage facility, plus the 7.5 million barrel Hardisty Contract Terminal surface storage facility
— More than 4.4 million barrels of operational storage associated with the Waupisoo and Athabasca pipelines and laterals