Enbridge Extends Open Season For Spearhead Pipeline Expansion Project
Enbridge Inc. (TSX:ENB) (NYSE:ENB) announced today that it has received significant interest from shippers for Phase I of a two-phased expansion of the Spearhead Pipeline through the Open Season which was announced March 2, 2007. The Spearhead Pipeline provides crude oil transportation between the Chicago area and Cushing, Oklahoma. Phase I will provide an incremental 65,000 barrels per day (bpd) of capacity.
In response to shippers’ requests for additional time to complete their analyses and secure necessary corporate approvals to enter into binding commitments, Enbridge has extended the Open Season until April 23, 2007 at noon CT. The Open Season was scheduled to close April 2, 2007 at noon CT. Shippers desiring long-term service are requested to execute and submit completed and signed transportation service agreements (TSAs) to Enbridge affiliate, CCPS Transportation, LLC. Enbridge has also modified certain terms of the TSA in response to shipper comments.
The Phase I expansion Open Season, if fully subscribed, would increase the Spearhead Pipeline’s average annual capacity from the current 125,000 bpd to 190,000 bpd. Given the existing commercial arrangements on the Spearhead Pipeline, the Open Season offers 30,000 bpd of new firm capacity. The remaining 35,000 bpd of expansion capacity will be available to uncommitted shippers unless and until existing committed shippers exercise their right to commit to this capacity. The Open Season is soliciting shipper interest in executing binding commitments to transport specified volumes of crude oil - up to an aggregate 30,000 bpd average annual capacity - over a 10-year term on the expanded pipeline. The expansion is expected to be completed in early 2009.
Should shipper interest for incremental capacity greatly exceed the available firm capacity offered in the Phase I Open Season, it is Enbridge’s expectation that it would proceed with the Phase I expansion to 190,000 bpd and promptly initiate an Open Season for a Phase II expansion.
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