HOUSTON, April 27, 2006 (PRIMEZONE) -- Enbridge Energy Partners, L.P. (NYSE:EEP) (the "Partnership") today approved up to a $70 million capital expenditure for a 30,000 barrel per day (Bpd) expansion of its North Dakota crude oil system. The expansion would be staged to provide incremental capacity by October 2006, with full capacity targeted for the fourth quarter 2007. The approved expenditure is subject to final support from shippers and producers, following which the Partnership intends to file a negotiated rate settlement surcharge with the Federal Energy Regulatory Commission (FERC).
The Partnership is working closely with shippers, producers and government officials to offer expanded pipeline transportation options in response to increased petroleum production in the region. Currently 75 percent of shippers on the North Dakota System have signed letters of support for the mainline expansion.
Drilling success in Montana and North Dakota and other factors are contributing to an oversupply in the northern U.S. Rockies area; while market demands are exceeding eastbound pipeline capacity available on the North Dakota System. The expansion will improve pipeline access to the Partnership's Lakehead System from eastern Montana and North Dakota. Shippers utilizing the Lakehead System can access refinery markets in the Upper Midwest, with interconnections providing access to the Mid-Continent and Gulf Coast.
Other expansions underway by Enbridge Inc. and the Partnership also will assist in providing ample transportation outlets for growing supplies of crude oil from western Canada into markets east of the Rockies. Specifically, the Partnership's Southern Access expansion will provide 400,000 Bpd of increased capacity by early 2009. In a separate decision today, the Partnership approved an increase in the pipe size for the Southern Access project from 36 inches to 42 inches, allowing for economical future expansions of up to 800,000 Bpd.
The planned expansion on the North Dakota System involves initial measures to be undertaken by Partnership to increase throughput by upgrading and testing transmission pipe segments to safely increase pipe pressure. Support from shippers is sought for a surcharge to fund the other major components of the expansion. These include 10 new or upgraded pump stations and a new 52-mile pipeline segment parallel to existing gathering pipe, to increase transport capacity out of the areas of highest production increases, such as Richland County, Mont. and western North Dakota oil fields; and additional tankage on the western portion of the system.
ABOUT ENBRIDGE ENERGY PARTNERS
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil and natural gas transportation systems in the U.S. Its principal crude oil system is the largest transporter of growing oil production from western Canada. The system's deliveries to refining centers in the U.S. Midwest account for approximately 10 percent of total U.S. oil imports; while deliveries to Ontario, Canada satisfy approximately 60 percent of refinery demand in that region. The Partnership's natural gas gathering, treating, processing and transmission assets, which are principally located onshore in the active U.S. Mid-Continent and Gulf Coast area, deliver more than 2 billion cubic feet of natural gas daily. Enbridge Energy Management, L.L.C. (NYSE:EEQ) (www.enbridgemanagement.com) manages the business and affairs of the Partnership and its principal asset is an approximate 18 percent interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. is the general partner and holds an approximate 11 percent interest in the Partnership.
LEGAL NOTICE
When used in this news release, words such as "anticipates", "expects", "plans", "will" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining to factors such as: (1) changes in the demand for, or the supply of, and price trends related to crude oil and natural gas liquids; including the rate of development of the Alberta Oil Sands; (2) changes in or challenges to Enbridge Partners' tariff rates; (3) the effects of competition, including by other pipeline systems; (4) regulatory approvals; and (5) performance of other parties. Reference should also be made to Enbridge Partners' filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the most recently completed fiscal year, for additional factors that may affect results. These filings are available to the public over the Internet at the SEC's web site (www.sec.gov) and via Enbridge Partners' web site.