Canada's Enbridge to build C$250 million Alberta crude terminal

London (Platts)--3May2006

Canada's Enbridge plans to build a new 5 million barrel crude terminal at
Hardisty, Alberta, at a cost of C$250 million ($226 million), the company said
Wednesday.

The new terminal will provide services on a long-term contract
fee-for-service basis, Enbridge said, adding it has signed letters of intent
for terms averaging seven years, on 80% cent of the initial design capacity.
The terminal will be located close to, but separate from, Enbridge's
existing regulated mainline system terminal at Hardisty, and Enbridge's
50%-owned Hardisty Caverns partnership, the company said.

Enbridge said it was in "active discussions with additional parties whose
interest exceeds the remaining capacity," and that the design of the facility
included room for future expansion.

"Demand for terminaling facilities is very strong as a result of growth
in oil sands production, seasonality of markets, and greater price volatility.
The new Hardisty facility has low cost expansion potential and will position
us well to attract additional business as oil sands production continues to
grow." CEO Patrick Daniel said in a statement.

He said Enbridge currently had 15 million barrels of tankage under
long-term contract, with another 30 million barrels under development at eight
different locations.

Construction of the new terminal is estimated to take between 24 to 30
months, and it is anticipated the facility would be in service in September
2008, the company said.

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