PIPELINES / IPL Terrace Expansion
JUNE 11, 1998
IPL Energy Welcomes NEB Approval of Terrace Phase I
Expansion Application
CALGARY, ALBERTA--(JUNE 11, 1998) IPL Energy Inc. today announced
its wholly-owned subsidiary Interprovincial Pipe Line Inc. of
Edmonton has received approval from the National Energy Board
(NEB) to proceed with the Terrace Phase I crude oil pipeline
expansion project.ÿ The Terrace project is a phased program on the
Interprovincial Pipe Line and Lakehead Pipe Line Partners, L.P.
systems that will ultimately provide overall system capacity
increase of 350,000 barrels per day - with a heavy crude oil
allocation of up to 520,000 barrels per day - for Western Canadian
producers seeking greater access to Midwest U.S. markets.
The first phase will provide an initial 95,000 barrels per day
capacity increase by January, 1999, rising to 170,000 barrels per
day by the end of 1999, at an investment of Cdn. $610 million in
Canada and U.S. $138 million in the United States.ÿ Subsequent
phases in the expansion program will provide the balance of
350,000 barrels per day of added capacity.
Brian F. MacNeill, President & Chief Executive Officer of IPL
Energy, said that the NEB approval is an important milestone in
the development of one of the most significant crude oil pipeline
expansion programs in Canadian history.ÿ "The Terrace Expansion
Project has received widespread industry support and is a vital
component for future Western Canadian heavy and synthetic crude
oil expansion programs," Mr. MacNeill said.ÿ "This expansion
builds upon the core strengths of our existing pipeline system and
strategically positions IPL for future pipeline expansion
opportunities.ÿ At the same time, Western Canadian producers can
continue to move forward with their expansion plans, confident in
the knowledge that the IPL system will be able to transport
significantly increased volumes to U.S. Midwest refinery markets."
This approval comes shortly after the approval in April by the
Alberta Energy and Utilities Board of another IPL Energy project,
the Athabasca Pipeline, under construction by wholly-owned
subsidiary Wild Rose Pipe Line Inc. of Calgary.ÿ The Athabasca
Pipeline will provide transportation service within Alberta from
the Athabasca and Cold Lake regions south to its terminus at
Hardisty.ÿ From the pipeline hub at Hardisty, crude supply will
have access to the expanded IPL and Lakehead pipeline systems.
IPL ENERGY INC. is a leader in energy delivery and services,
operating the world's longest crude oil and petroleum products
pipeline through the combined Interprovincial Pipe Line Inc. and
Lakehead Pipe Line Partners, L.P. system, and Canada' largest
natural gas distribution company through The Consumers' Gas
Company Ltd. which serves 1.4 million residential, commercial and
industrial customers in south central and eastern Ontario, Quebec
and Upper New York State.ÿ IPL Energy's common shares trade on the
Toronto and Montreal stock exchanges in Canada under the symbol
"IPL".ÿ In the United States the shares trade on the NASDAQ
National Market under "IPPIF".
TERRACE EXPANSION PROGRAM FACT SHEETÿ
PHASE I
-ÿ Phase I mainline facilities are scheduled to be placed in
service January 1999.ÿ This will provide an immediate 95,000 bpd
of incremental capacity to IPL/LPL's bases system capacity.ÿ The
Canadian facilities include construction of 620 kilometers of
pipeline in 15 new sections of 914 mm (36 inch) pipe that connect
existing 1219 mm (48 inch) diameter loop sections, creating a
fifth pipeline running between Kerrobert, Saskatchewan and Gretna
Manitoba.
In addition, Lakehead Pipe Line Partners L.P. is proposing to
construct a further 160 kilometres, (100 miles) of new 914-mm
(36-inch) pipeline in four separate sections between Canada/U.S.
border and Clearbrook, Minnesota.
-ÿ All remaining station modifications are scheduled to be
completed by the fourth quarter of 1999, resulting in an
additional 75,000 bpd of incremental capacity being added to base
system capacity.ÿ The total capacity increase which will result
from the Phase I facilities will be 170,000 bpd.
PHASE II
-ÿ Phase II of the program will include an extension of the
36-inch pipeline between Hardisty, Alberta and Kerrobert,
Saskatchewan.ÿ The tentative in-service date for Phase II is the
fourth quarter of 2000.ÿ This expansion would provide an
additional 40,000 bpd of incremental capacity.
PHASE III
-ÿ Phase III would include an extension of the 36-inch pipeline
between Clearbrook, Minnesota and Superior, Wisconsin on the
Lakehead Pipeline System.ÿ Subject to shipper production and
transportation requirements, Phase III facilities could be
in-service as early as the fourth quarter of 2001 and would
provide 140,000 bpd of incremental capacity.
/T/
TOTAL TERRACE CAPACITY EXPANSION PROJECT:
CAPITAL COST:ÿÿÿÿÿÿÿÿÿ $1.4 billion
CAPACITY INCREASE:ÿÿÿÿÿ 350,000 bpd overall system
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 520,000 bpd heavy crude
IN-SERVICE:ÿÿÿÿÿÿÿÿÿÿÿÿ January, 1999ÿÿÿÿÿÿÿÿÿÿ - Phase I
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Fourth Quarter - 2000ÿÿ - Phase III
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Fourth Quarter - 2001ÿÿ - Phase III
/T/
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FOR FURTHER INFORMATION PLEASE CONTACT:
IPL Energy Inc.
Alan Roth
Media Contact
(403) 420-5287
iplenergy.com
or
IPL Energy Inc.
Al Monaco
Investor Contact
(403) 231-3973
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