HOUSTON, Dec. 9, 2019 /CNW/ - Enbridge Inc. (TSX:ENB)(NYSE:ENB) (Enbridge) and Enterprise Products Partners L.P. (NYSE: EPD) (Enterprise) announced today they have agreed to jointly develop and market a deep-water offshore crude oil export terminal capable of fully loading Very Large Crude Carriers (VLCCs).
Under the terms of the Letter of Intent (LOI), Enbridge and Enterprise will work to finalize an equity participation agreement (Agreement). The Agreement would allow Enbridge an option to purchase an ownership interest in Enterprise's Sea Port Oil Terminal (SPOT), subject to SPOT receiving a deep-water port license. The parties intend to initially focus commercial development efforts on seeking customer support to fully utilize SPOT. As the crude oil export market continues to grow, Enbridge anticipates that its Texas COLT deep-water port will be well positioned to proceed.
"We are pleased to be teaming up with Enterprise to bring large scale, integrated export solutions to the market," said Enbridge President and CEO Al Monaco. "This collaboration leverages our jointly owned and highly competitive Seaway system and capitalizes on each of our capabilities to drive out highly capital efficient export infrastructure for our customers. For Enbridge, it's also a key part of our priority to provide our North American light and heavy crude customers with highly efficient access to the Houston-area refining markets and growing global demand."
Enbridge also announced that it will advance the development of a new wholly-owned Jones Creek Crude Oil Storage Terminal. The terminal will have ultimate capability of up to 15 million barrels of storage; access to crude oil from all major North American production basins and will be fully integrated with the Seaway Pipeline system to allow for access to Houston-area refineries, existing export facilities and other facilities in the future.
Seaway announced on November 25, 2019, a plan to proceed with an open season to secure interest in a potential 200,000 barrels per day expansion of the system. Seaway is well-positioned as a highly competitive option to transport Cushing volumes to a fully integrated network of pipelines, storage facilities, and export terminals along the US Gulf Coast.
"The combination of the proposed Seaway expansion, the development of our Jones Creek Storage Terminal and our expanded offshore VLCC, positions us nicely and advances our strategy to enhance and extend North America's premiere crude oil value chain – one that stretches from western Canada, to the Midwest and through to the Midcontinent and US Gulf Coast. It also fits very well with our broader goal to further build out our export infrastructure position in both crude oil and natural gas," said Monaco.
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to proposed projects to develop a deep-water offshore export terminal with Enterprise, SPOT, Texas COLT and the Jones Creek Terminal, including the benefits, risks, costs and timing thereof, the receipt of applicable permits and governmental, regulatory, customer and other approvals, and other related matters.
Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the impact of customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes; the availability and price of labour and construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impact of weather; and the ability of our joint venture partners to complete and finance proposed projects.
Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; and Utilities and Power Operations, which serves approximately 3.7 million retail customers in Ontario and Quebec, and generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com
SOURCE Enbridge Inc.