Enbridge Sees Investment in Pra About $264M, Will Buy Some Facilities

Enbridge Inc.

announced today that it has entered into a midstream services relationship with Encana Corporation (TSX, NYSE:

) to develop gas gathering and compression facilities in the Peace River Arch ("PRA") region in northwestern Alberta. Enbridge has agreed to acquire from Encana certain gathering and compression facilities in the PRA region currently in service and under construction, with an expected closing date in December 2012. Following the completion of construction of these facilities in 2013, Enbridge's total investment in the PRA region is expected to be approximately $264 million. The financial terms of the midstream services agreement for the gathering and compression facilities in the PRA region will parallel previously established terms between Enbridge and Encana reached in 2011. Enbridge is also working exclusively with Encana on facility scoping for further development