Northern Gateway files Reply Evidence to JRP, makes pledge to heighten pipeline safety, operations measures

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Jul 20, 2012

CALGARY, ALBERTA – July 20, 2012 – Today Enbridge Inc. (TSX, NYSE: ENB) announced Northern Gateway has filed Reply Evidence in the regulatory application for the project and, contained in that filing, details further enhancements in pipeline design and operations. These extra measures build on the plan in the application presently before federal regulators that already far surpasses industry codes and standards.

“We recognize that there are concerns among Aboriginal groups and the public around pipeline safety and integrity. We had already planned to build a state-of-the-art project, using the most advanced technology, safety measures and procedures in the industry today,” said Janet Holder, Executive Vice President, Western Access, Enbridge Inc. “With these enhanced measures, we will make what is already a very safe project even safer in order to provide further comfort to people who are concerned about the safety of sensitive habitats in remote areas.”

Enbridge and the Northern Gateway project team have worked hard to ensure this unique project would be built and operated to the highest standards. The measures contained in the Reply Evidence go above and beyond anything that has ever been done before in the industry.

The extra measures include:

  • Increasing pipeline wall thickness of the oil pipeline
  • Additional pipeline wall thickness for water crossings such as major tributaries to the Fraser, Skeena and Kitimat Rivers
  • Increasing the number of remotely-operated isolation valves. This would increase the number of isolation valves in BC by 50%
  • Increasing frequency of in-line inspection surveys across entire pipeline system by a minimum 50% over and above current standards
  • Installing dual leak detection systems
  • Staff pump stations in remote locations on a 24/7 basis for on-site monitoring, heightened security, and rapid response to abnormal conditions

Enbridge expects these extra measures will carry an additional cost of approximately $400 million - $500 million.

“After years of consultation with stakeholders and after personally attending many regulatory hearings for Northern Gateway, it has become clear – we have to do everything we can to ensure confidence in the project,” said Ms. Holder. “We’ve listened. We have often been asked if we could guarantee that we would never have a significant pipeline failure over the years on Northern Gateway. These initiatives will put the project closer than any pipeline system in the world to providing that guarantee.”

The Northern Gateway Project is a proposed 1,176-km twin pipeline system and marine terminal. The proposed project, currently under regulatory review, would transport 525,000 barrels per day (bpd) of oil for export and import 193,000 bpd of condensate.

About Enbridge Inc.

Enbridge Inc. is a North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a significant and growing involvement in natural gas gathering, transmission and midstream businesses, and an increasing involvement in power transmission. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, Enbridge has interests in almost 1,000 megawatts of renewable and alternative energy generating capacity and is expanding its interests in wind and solar energy, geothermal and hybrid fuel cells. Enbridge employs about 7,000 people, primarily in Canada and the U.S. and is ranked as one of Canada's Greenest Employers, and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.

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Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

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  • Northern Gateway, Oct 03rd, 2013 (7 months ago)

    Hi Ioni, thanks for your question.

    Currently we're awaiting the Joint Review Panel's project recommendation. After that, the federal government is expected to issue its decision on whether or not the project can be built.

    The BC government has issued 5 Conditions for new oil pipeline projects, and Northern Gateway is aligned with those conditions—currently we're consulting with British Columbians to hear their views on the project and to share information with them. We're optimistic that, through open discussion, we can find solutions to issues and make this project a reality.

  • loni Bowers, Oct 01st, 2013 (7 months ago)

    With so many British Columbians not in favour of this project, I am wondering if it seems possible to you that you might, at some point, decide not to pursue it. That is, if you are unable to persuade citizens that the project is safe and good for B.C.

  • Lillian, Jul 07th, 2013 (10 months ago)

    There are no guarantees.

  • Northern Gateway, Nov 13th, 2012 (1 year ago)

    Hi Ryan, thanks for your comment and questions.

    This blog post discusses seismic and tsunami activity on the BC north coast and outlines how Northern Gateway's design accounts for this potential risk: http://www.northerngateway.ca/news-and-media/northern-gateway-blogs/pipeline-safety/earthquake-on-the-queen-charlotte-fault/

  • Ryan, Nov 10th, 2012 (1 year ago)

    Is there any plan concerning seismic activity on the coast of BC? How would pipelines handle big shifts along fault lines? What for tankers in the straight if there is a tsunami?

  • Jeff Henderson, Oct 25th, 2012 (1 year ago)

    Are there any statistics concerning the safety of the pipeline?

  • brad rinsma, Oct 05th, 2012 (2 years ago)

    lets get this pipeline going,i work for a pipeline co.,and i need the work.

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