Mr. Graham White reports

ENBRIDGE OPTIMIZES REGIONAL OIL SANDS INFRASTRUCTURE EXPANSIONS

Enbridge Inc. plans to optimize a previously announced expansion of its regional oil sands system. The optimization, which has been agreed to with affected shippers, will involve capital cost savings of $400-million in aggregate and lower tolls for the shippers, while maintaining attractive returns on the capital to be invested.

Projects involved in the optimization include the Athabasca twin project and the Wood Buffalo extension project. Following the optimization and finalization of scope and definitive cost estimates for the projects, Enbridge's commercially secured expansion investments on its regional oil sands system, in service from 2014 to 2017, will total $5.6-billion. By 2017, Enbridge will connect 11 oil sands projects to regional hubs in Edmonton and Hardisty, Alta.

"We continually work closely with our customers to ensure we're meeting their market access needs through safe, reliable transportation solutions offered at the lowest practical cost," said Guy Jarvis, president, liquids pipelines. "By combining the Wood Buffalo extension project and the Athabasca pipeline twin, we will be able to deliver significant toll savings to our shippers while meeting all our contractual commitments to them. At the same time, optimization of the projects is a more efficient use of capital for Enbridge and preserves attractive returns."

The optimization involves:

• Expansion of the Wood Buffalo extension segment between Cheecham and Kirby Lake (approximately 100 kilometres) from 30-inch diameter to 36-inch diameter;
• Connection of the Wood Buffalo extension to the 36-inch-diameter Athabasca twin at Kirby Lake;
• Expansion of the Athabasca twin from 450,000 barrels per day to 800,000 bpd through additional horsepower.

The cost of the Wood Buffalo extension at its reduced scope is expected to decrease to approximately $1.3-billion, from $1.8-billion before the optimization. The cost of the Athabasca pipeline twin is expected to increase from approximately $1.2-billion to approximately $1.3-billion.

Enbridge expects to file an amendment application with the Alberta Energy Regulator in the second quarter of 2015. The Wood Buffalo extension, the Athabasca pipeline twin and the proposed Norlite diluent pipeline will be the conduit to ship diluent to, and blended bitumen from, the Fort Hills mine project, which has an anticipated first oil date of fourth quarter 2017.