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December 10, 2011

Rail and Pipeline expansions and project to move more Bakken Oil from North Dakota and Saskatchwan

1. Enbridge Energy Partners LP will make an additional $145 million investment in North Dakota to expand crude oil capacity and add a rail car loading facility to accommodate the additional volume, the company said today.

The Houston-based petroleum company, which operates oil pipelines, said that it will increase the holding capacity at the Berthold terminal by 80,000 barrels per day and add a double-loop unit-train facility, oil tanks and other terminal facilities next to its existing facilities.

The expansion adds to ongoing efforts by Enbridge to accommodate a boom in oil production in the region. Its Bakken Expansion Program announced in 2010 is aimed at increasing the company's transport capacity by another 145,000 barrels of oil per day from fields in Montana, North Dakota and southeast Saskatchewan. Expansion Program is expected to cost about $370 million for the U.S. projects and about $187 million for the Canadian projects

2. Enbridge Inc. (TSX:ENB) (NYSE:ENB) and Enterprise Products Partners L.P. (NYSE: EPD) announced that they have agreed to reverse the direction of crude oil flows on the Seaway pipeline to enable it to transport oil from Cushing, Oklahoma to the U.S. Gulf Coast. Pending regulatory approval, the line could operate in reversed service with an initial capacity of 150,000 barrels per day by second quarter 2012.



Following pump station additions and modifications, anticipated to be completed by early 2013, the capacity of the reversed Seaway Pipeline will be up to 400,000 barrels per day in mixed service. Enbridge and Enterprise expect that the reversed Seaway pipeline will be fully contracted. The partners anticipate conducting an open season to validate shipper support for an expansion of Seaway, through looping or twinning.

After reversing the direction that crude oil flows on the 500-mile (805-kilometer), 30-inch diameter, long-haul pipeline, Seaway will deliver crude from Cushing into the Houston-area market by utilizing existing affiliate and third-party pipelines as well as its Texas City local pipeline system. Enbridge and Enterprise plan to build a 45-mile (72-kilometer) pipeline that will link Seaway directly to Enterprise's ECHO crude oil storage terminal located southeast of Houston. This will provide shippers with enhanced connectivity and more efficient transportation to the Houston refining market. Additional investment required by the joint venture partners to reverse the line and construct supporting lateral and related facilities is expected to be approximately $300 million.

3. CP (Canadian Pacific Railway) is now increasing volumes of crude oil movement by rail out of the Saskatchewan Bakken oil formation through a new CP transload facility, operated by Bulk Plus Logistics in Estevan. This is in addition to railcar loads already moving out of the Dollard, SK transload facility, located on the Great Western Railway, a short line partner of Canadian Pacific. This oil is destined to various refineries in both Canada and the United States.

The Bakken Formation, encompassing sections of Saskatchewan and North Dakota, is a key area of focus for Canadian Pacific and part of the railway's growing energy portfolio. In the past three years CP has demonstrated its ability to deliver crude oil by rail. Volumes of rail shipments out of North Dakota, for example, have grown from roughly 500 carloads in 2009 to more than 13,000 carloads in 2011. This is expected to grow to 70,000 annual carloads in the future.

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