Enbridge to Extend GoM Infrastructure to Connect Gas from Shenzi Field

Enbridge's subsidiary, Enbridge Offshore Pipelines, L.L.C. will extend its Gulf of Mexico pipeline infrastructure by constructing a natural gas gathering lateral to connect the deepwater Shenzi field to existing Gulf pipelines.

"The Shenzi lateral project, which follows the similar Neptune lateral project announced last year, is another positive step in our strategy of building on Enbridge's recently acquired deepwater offshore businesses in the Gulf of Mexico," said Doug Krenz, President of Enbridge Offshore Pipelines. "It leverages existing Enbridge gas infrastructure in the Gulf, positioning us for other opportunities in the region."

Enbridge will construct and operate a gas lateral that will consist of 11 miles of 12-inch diameter pipe and will have the capacity to deliver in excess of 100 million cubic feet per day.

The Shenzi discovery represents a major development relatively close to Enbridge's existing Green Canyon infrastructure. The Shenzi development will provide a new natural gas supply source and potential for additional supply sources for the existing Cleopatra, Manta Ray and Nautilus offshore pipeline systems, all partially owned by Enbridge.

The Shenzi field is located approximately 120 miles from the coast of Louisiana in water depths of approximately 4,300 feet. BHP Billiton will be operator of the field, which has estimated recoverable reserves in the range of 350 million to 400 million barrels of oil equivalent: BHP Billiton has a 44% interest in the field, BP Exploration & Production Inc. has 28%, and Hess Corporation has 28%. Development plans, costing approximately US$4.4 billion gross through the year 2015, include drilling a number of subsea wells, and the wells, subsea flowlines and other production facilities that will be operated by BHP Billiton on behalf of the joint venture partners.

The lateral pipeline to be built by Enbridge is expected to be completed by year-end 2007, with first gas expected by mid-year 2009.

Enbridge Offshore Pipelines provides Enbridge with wholly owned or joint venture interests in 11 transmission and gathering pipelines in five major pipeline corridors in Louisiana and Mississippi offshore waters of the Gulf of Mexico. The system moves on average approximately 3 billion cubic feet per day - approximately half of all deepwater Gulf of Mexico natural gas production.

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