Historical Events A summary of key historical events in the evolution of the corporation. view... (PDF - 19KB)

Historical Highlights

		The Enbridge name and brand came into being in October 1998, but the company's roots go back more than 55 years to 1949.

A Company in Transition Acquisition of Consumers Gas Subsequent Growth

Interprovincial Pipe Line (IPL), which became Enbridge Pipelines in 1998, was incorporated in 1949, shortly after Canada's first major oil discovery at Leduc, Alberta. The original pipeline was constructed to transport oil from Western Canada to refineries in the east.

The company has seen steady growth and numerous expansions over the years and today approximately two-thirds of Canada's crude oil from the Western Canadian Sedimentary Basin is transported through the Enbridge Pipelines system delivering more than 2 million barrels a day to markets in Eastern Canada and the United States. The original pipeline was built to carry oil from the 1947 Leduc oil discovery to Regina. When it became clear that Leduc was not the only oilfield in the Edmonton area, a decision was made to extend the pipeline from Regina to Superior, Wisconsin and then on to Sarnia, Ontario. Construction of the main pipeline from Edmonton to Superior began in November 1949. On October 4, 1950, the system was in full operation, and the first oil reached Superior on December 5, 1950. In 1953, the pipeline was extended from Superior to Sarnia.

In 1968/69 the system was extended south from Superior to Chicago, Illinois, and on to Sarnia. This was significant because it gave Enbridge access to the upper Midwest markets of Chicago, Detroit and beyond (PADD II), a key market today as it was more than 30 years ago.

And in the years leading up to 1985, the system was extended to include Port Credit, Ontario; and Montreal, Quebec. In 1999, the direction of flow for the pipeline from Montreal to Sarnia (Line 9) was reversed to enable an east-to-west flow of imported crude oil.

Mainline expansion continued throughout the 1990s, and into 2000 and 2001, with the System Expansion Program (SEP) and Terrace expansion programs.

In 1985, Interprovincial Pipe Line completed construction of an 870-kilometre pipeline from Norman Wells, Northwest Territories, to Zama, Alberta. It was the first buried pipeline to be constructed through permafrost in Canada's North. And in 1991, the company spun off the U.S. pipeline into a Master Limited Partnership. Enbridge continues to operate the U.S. portion of the liquids pipeline system.

Although Interprovincial had long been publicly traded, for most of its life the company was primarily owned by a handful of producers who shipped their products on the system. Then in 1983, Hiram Walker Resources took a major position in Interprovincial, through a share swap. That led to a string of events that included the acquisition of Home Oil in 1986, the creation of Interhome Energy, and control by Olympia & York. In 1992, Olympia & York sold its majority interest into the general marketplace, and Interprovincial became a widely held company. That was really the beginning of the Enbridge of today.

Enbridge today is a leading publicly traded energy transportation and distribution company, active in North America and internationally. That's a far cry from being "just a pipeline company" - although as operator of the world's longest crude oil and liquids pipeline system that, alone, is worthy of considerable merit.

But Enbridge now is also owner and operator of Canada's largest natural gas distribution system, and is building a new gas distribution system for the province of New Brunswick. Enbridge participates in gas transmission through the Alliance and Vector gas pipelines. It is involved in the gas midstream business, liquids feeder pipelines, electrical power distribution, retail energy services, energy marketing, fuel cells, and has a growing involvement internationally with investments such as the OCENSA crude oil pipeline in Colombia.

And all of this has occurred since the early 1990s.

The company's major transformation began with the 1994 acquisition of 85 per cent of The Consumers' Gas Company. Consumers, now known as Enbridge Gas Distribution, was incorporated in 1848 to distribute coal gas to light street lamps in Toronto. Today, Enbridge Gas Distribution distributes natural gas to 1.7 million customers in parts of Ontario, Quebec and New York State.

The acquisition was Enbridge's first, and so far only major business transaction. The company continues to assess opportunities for major deals as opportunities arise, and certainly such deals could dramatically affect the size and growth outlook of the business. But Enbridge does not intend to grow simply for growth's sake: any future acquisition must add value for shareholders.

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Since 1994, Enbridge has focused on a combination of internally generated growth projects, acquisitions, joint ventures and strategic alliances, including:

• The 1995 acquisitions of the Producers and Portal Pipelines, in Saskatchewan and North Dakota, respectively, added gathering and feeder pipeline capability to Enbridge's mainline pipeline system.
• The 1996 acquisition of a 30 per cent interest in the Mustang Pipeline, and the 1998 acquisition of a 21 per cent interest in the Chicap Pipeline, both in Illinois, extended Enbridge's geographic reach into new market areas in the United States.
• The company negotiated a win-win situation with Noverco in 1997, enabling it to acquire 32 per cent of that company, which owns 77 per cent of Gaz Metropolitan. Through Noverco, Enbridge is able to participate in gas distribution and transmission in Quebec and the northeastern United States, as well as gaining a strategic alliance with Hydro-Quebec, one of North America's largest and lowest cost producers of electricity.
• The 1998 acquisition of Cornwall Electric provided Enbridge with entry into the Ontario electricity distribution business.
• Construction in 1999 and ownership of the Enbridge Athabasca Pipeline which connects the oil sands and heavy oil deposits of northeastern Alberta to the Hardisty, Alberta, pipeline hub and Enbridge's mainline system.
• The acquisition of a 40 per cent interest in AltaGas Services in 1999 gives Enbridge direct involvement in the natural gas gathering, processing and extraction businesses.
• In 1999 Enbridge was awarded the exclusive franchise to develop and operate a natural gas distribution network for the province of New Brunswick.
• Unbundling of Enbridge Gas Distribution (formerly known as Enbridge Consumers Gas) in 1999 gave Enbridge Services, Enbridge's retail energy services, heating, ventilation, air conditioning and appliance sales business in Ontario, the critical mass for profitable growth in a non-regulated environment.
• In September 2000, Enbridge increased its interest in the OCENSA pipeline in Colombia from the 17.4 per cent acquired in 1994 to 24.7 per cent. Enbridge now is sole operator of the system, which is the major transporter of crude oil in Colombia.
• Enbridge's interests in Alliance and Vector, both of which went into commercial service at the beginning of December 2000, provide Enbridge with entry into the emerging west-to-east natural gas pipeline network. The company has played a leading role in developing and bringing both projects to start-up.
• In July 2000 Enbridge announced a strategic alliance to develop gas-fuelled fuel cells for residential use. In April 2001 the company announced an investment in the SunBridge wind power project in Saskatchewan. The two investments are the first steps in Enbridge's strategy of participation in emerging and renewable energy technologies.
• In May 2001 Enbridge completed the acquisition of Midcoast Energy Resources of Houston. The US$600 million acquisition gave Enbridge an expanded presence in the natural gas business, and in the U.S. Gulf Coast and Mid-Continent regions, significantly expanding the company's North American footprint.
• On October 30, 2001, Enbridge Inc. listed and its common shares began trading on the New York Stock Exchange, under the trading symbol ENB.
• In March 2002, Enbridge completed the acquisition of a 25% interest in Compañia Logistica de Hidrocarburos CLH, S.A., Spain's largest refined products transportation and storage business.
• In May 2002, Enbridge completed the sale of its retail energy services businesses in Canada and the U.S. to Centrica for $1 billion in cash.
• In July 2002, Enbridge Consumers Gas changed its name to Enbridge Gas Distribution Inc.
• In October 2002, Enbridge Inc. completed the transfer of its U.S. natural gas assets to Enbridge Energy Partners, L.P. for US$820 million. Also in October, the initial public offering of Enbridge Energy Management, L.L.C., a U.S. affiliate of Enbridge Inc., was completed. EEM was formed to manage and control the business and affairs of EEP.
• In April 2003, Enbridge completed the acquisition of additional interests in the Alliance Pipeline. Enbridge increased its ownership of the Canadian portion of the pipeline to 50%, its ownership of the U.S. portion to 48.9% (that was increased to 50% at end), and its ownership of the Aux Sable NGL plant and AC Marketing to 43%.
• In June 2003, Enbridge announced the creation of the Enbridge Income Fund. The Fund's initial asset base includes Enbridge's 50% interest in the Canadian portion of the Alliance Pipeline and Enbridge's 100% interest in Enbridge Pipelines (Saskatchewan) Inc. Enbridge is the sponsor and manager of the Fund.
• In September 2003, Enbridge completed the acquisition of a 90% interest in the Cushing to Chicago Pipeline System. The 1050-kilometre (650-mile) 22/24-inch diameter pipeline has capacity of 300,000 barrels per day. In December 2004, Enbridge announced that it would proceed with its Spearhead Pipeline project to reverse the flow of the pipeline to ship crude oil from Chicago, Illinois, to the hub at Cushing, Oklahoma, providing Canadian producers and shippers with access to new markets south of Chicago. The announcement came following the successful conclusion of an open season for shipper commitments and after securing support from the Canadian Association of Petroleum Producers. In June 2005, Enbridge increased its interest in Spearhead to 100%.
• In November 2003, Enbridge and CCS Inc. officially opened their jointly owned underground crude oil storage facility at Hardisty, Alberta. The Hardisty Caverns, Canada’s first crude oil storage facility, has four existing salt caverns, ranging in size from 600,000 to 900,000 barrels, and there are plans for expansion.
• In May 2004, Enbridge filed an application with the State of Alaska to negotiate commercial agreements for the construction and operation of the segment of the Alaska Highway natural gas pipeline project to be built in the state.
• In July 2004, Enbridge announced plans to divest a portion of its investment in AltaGas Income Trust. In October 2004, Enbridge announced that it had sold additional Trust Units and no longer held any interest in AltaGas.
• In September 2004, Enbridge announced it had entered into an agreement to provide pipeline transportation services for the Long Lake oil sands project. The agreement provides for an initial contract volume of up to 60,000 barrels per day with provisions for future increases. Start-up is expected in late 2006.
• In November 2004, Enbridge announced it had entered into an agreement to provide pipeline transportation services for the Surmont oil sands project. The agreement provides for an initial contract volume of up to 50,000 barrels per day of blended crude with provisions for future increases. Start-up is expected in mid-2006.
• Effective January 1, 2005, Enbridge acquired Shell Gas Transmission for US$613 million. The acquisition involved ownership interests in 11 natural gas transmission and gathering pipelines in five major offshore Gulf of Mexico corridors that transport approximately 3 billion cubic feet per day – approximately half of all deepwater natural gas production in the Gulf of Mexico.
• At the Enbridge Inc. annual and special meeting of shareholders in May 2005, shareholders approved a proposal to divide the company’s common shares on a two-for-one basis. The record date for the stock split was May 20, 2005.
• Enbridge reached an agreement in June 2005 with the Canadian Association of Petroleum Producers for a new five-year Incentive Tolling Settlement. The new ITS covers tolls on the core component of Enbridge’s mainline system in Canada from January 1, 2005 to December 31, 2009. Both Enbridge and CAPP realized significant benefits under the previously negotiated incentive tolling agreements that covered the periods 1995 to 1999, and 2000 to 2004.
• In September 2005, Vector Pipeline announced plans for a 2007 expansion of its mainline natural gas transmission pipeline, from 1 billion cubic feet per day to 1.2 billion cubic feet per day. Enbridge is the lead operator of and has a 60% interest in Vector.
• In September 2005, Enbridge entered into agreements to provide terminaling and pipeline services to the Heartland Upgrader under development by BA Energy at Fort Saskatchewan, Alberta. Enbridge expects to invest approximately $80 million in new facilities to provide storage services at a new satellite terminal it will develop adjacent to the upgrader, and pipeline transportation for the upgrader’s output from the new terminal to the nearby Edmonton terminal. Facilities are scheduled to be in service in 2007. Enbridge also entered into a strategic alliance to pursue oil sands energy infrastructure development with Value Creation Inc., which owns proprietary upgrading technologies and is the major shareholder of BA Energy.
• Gateway Pipeline Inc., a wholly owned subsidiary of Enbridge Inc., filed a Preliminary Information Package with the National Energy Board, the Canadian Environmental Assessment Agency and other federal departments in November 2005. The PIP provides detailed information on the major elements of the Gateway Project as of October 2005. It does not constitute an application for regulatory approval. Such an application is planned for 2006, subject to the achievement of commercial feasibility, including satisfactory shipper commitments, as well as successful completion of engineering, environmental planning, and public and Aboriginal consultation. This timing would permit construction to commence in 2008 and the pipelines to begin service in 2010. The Gateway Project is estimated to cost approximately $4 billion and will consist of a petroleum export pipeline with an initial capacity of approximately 400,000 barrels per day from near Edmonton to a marine terminal at Kitimat, B.C., and a condensate import pipeline along the same right-of-way initially transporting approximately 150,000 barrels per day from Kitimat to Edmonton.
• In November 2005, Enbridge announced that it will be developing 200 megawatts of wind power on the eastern shore of Lake Huron in Bruce County, Ontario. Enbridge has executed a 20-year electricity purchase agreement with the Ontario Power Authority for all of the power produced by the project, and will be responsible for project construction, which is expected to start in mid-2006, and operating the project when commercial operations begin in early 2007. Total capital expenditures for the project will be approximately $400 million.
• In December 2005, Enbridge Inc. and Enbridge Energy Partners announced that they were proceeding with construction of the Southern Access expansion project. The project, which involves US$135 million of expansion on Enbridge’s Canadian mainline and US$815 million of expansion on the Lakehead System in the U.S., will provide additional capacity of 400,000 barrels per day by 2009 into the U.S. Midwest.
• In December 2005, Enbridge Pipelines Athabasca (Inc.), a wholly owned subsidiary of Enbridge Inc., filed an application for regulatory approval to build the Waupisoo Pipeline. Waupisoo would be a $400 million pipeline from the Alberta oil sands to Edmonton, and would have an initial capacity of 350,000 barrels per day. The project, which could be in service in 2008, also includes a $200 million diluent return pipeline to transport diluent from Edmonton to the oil sands.
• In February 2006, Enbridge Inc. announced that it had completed the acquisition of a 65% common share interest in the Olympic Pipe Line Company for US$99.8 million, which includes Enbridge’s share of existing shareholder debt. Olympic owns the largest refined products pipeline in the State of Washington, transporting approximately 290,000 barrels per day of gasoline, diesel and jet fuel. The pipeline system extends from Blaine, Washington to Portland, Oregon, connecting four Puget Sound refineries to terminals in Washington and Portland. The system consists of 640 kilometres (400 miles) of 6-to-20-inch diameter pipe, a 500,000-barrel products terminal, 9 pumping stations and 21 delivery points or facilities. BP Pipelines (North America) Inc. is the operator of the pipeline system.
• In May 2006, Enbridge and EEP announced that the pipeline diameter for the Southern Access expansion would be upsized to 42", bringing the total estimated capital cost to US $1.3 billion.

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