Enbridge continues to expand its interests in natural gas pipelines in North America.

Through Enbridge Energy Partners, the Company is involved in a variety of natural gas transmission and gathering pipeline systems in the Gulf Coast and Mid-Continent regions of the United States. The Company is a major player in the fast-growing Anadarko Basin, Barnett Shale and Bossier Sands gas plays in Texas, and transports approximately 15% of all Texas gas production. In 2006, Enbridge Energy Partners announced plans to invest US$0.6 million to expand and extend its East Texas natural gas system to handle growing production from that area.

In addition, Enbridge Offshore Pipelines transports approximately half of the deepwater offshore natural gas production in the Gulf of Mexico, and is well positioned there to take advantage of forecast growth from proposed new deepwater projects. Work is currently under-way to construct natural gas and oil laterals to tie in new volumes, and in 2006 another seven deepwater discoveries were announced, reinforcing the Gulf’s potential for being a key source for long-term continental supply growth.

Enbridge also has major interests in the Alliance and Vector transmission systems that transport Western Canadian natural gas to markets in the U.S. Midwest and Ontario. Both pipelines announced growth plans in 2006 – Alliance is pursuing a pipeline extension to the east, and Vector is expanding capacity from its approximately 1 billion cubic feet per day to 1.2 billion cubic feet per day. Both pipelines are well positioned to transport northern natural gas, should the Alaska and Mackenzie pipeline projects proceed.