Enbridge, ETE to Provide Pipeline Access to Gulf Coast to Patoka, IL Hub

Enbridge Inc. (NYSE: ENB) and Energy Transfer announcedtoday that they have entered into an agreement on the terms for thejoint development of a project to provide crude oil pipeline accessto the eastern Gulf Coast refinery market from the Patoka, Illinoishub. The project will involve the conversion from natural gas service tocrude oil service of certain segments of pipeline that are currentlyin operation as part of the natural gas system of Trunkline GasCompany, LLC, a subsidiary of Energy Transfer Partners, L.P. andEnergy Transfer Equity, L.P. This agreement is subject to approval bythe Federal Energy Regulatory Commission (FERC) of Trunkline's July2012 request to abandon certain designated segments of pipeline fromnatural gas transmission service. The converted 30-inch diameter crude oil pipeline is expected to be in service by 2015. It will havecapacity of up to 420,000 to 660,000 barrels per day (bpd) dependingon crude slate and the level of subscriptions received in an openseason to be conducted in the near future. Enbridge and Energy Transfer (NYSE: ETP and ETE) would each own 50%of the joint venture entity. Enbridge's participation in the ventureis subject to a minimum level of commitments being obtained in theopen season, and on completion of due diligence. Crude oil can reach the Patoka hub from both western Canadaproduction and from the Bakken play in North Dakota through a varietyof existing pipelines as well as through Enbridge's Southern AccessExtension pipeline, which is already under development. The easternGulf Coast market is a highly attractive market for Canadian andBakken crude, but is not currently accessible by pipeline. TheTrunkline conversion would create the first pipeline transportationoption for transportation of crude oil to the eastern Gulf Coast from the midwest U.S. Once completed, the project will span more than 700 miles, includinga new lateral from central Louisiana, near the town of Boyce, to therefining market and the crude oil hub at St. James, Louisiana. TheSt. James hub will provide access to refineries in the eastern GulfCoast, as well as dock access for water-borne shipments.