This follows an announcement that Enbridge has entered into an agreement to acquire ConocoPhillips’ 50 per cent interest in the Seaway Crude Pipeline System for $US1.15 billion, and become joint owner of the pipeline with Enterprise, who will continue to operate the pipeline system and storage facilities. Closing of the transaction is subject to normal closing conditions and customary regulatory approvals and is anticipated by early 2012.

Enterprise General Partner President and Chief Executive Officer Michael Creel said “We congratulate Enbridge on its agreement to purchase a 50 per cent interest in Seaway. We believe that reversing the direction of crude oil movement on Seaway and the construction of additional infrastructure will accelerate access to Gulf Coast markets, reduce transportation costs, improve both producer and refiner economics, and hasten the development of North America's crude oil reserves.”

Enbridge President and Chief Executive Officer Patrick Daniel said “The Seaway Pipeline reversal provides an early opportunity to offer Gulf Coast access to midcontinent producers and other crude oil shippers. A Seaway reversal will provide capacity to move secure, reliable supply to Texas Gulf Coast refineries, offsetting supplies of imported crude.”

Following pump station additions and modifications, anticipated to be completed by early 2013, the capacity of the reversed Seaway Pipeline will be up to 400,000 bbl/d in mixed service. Enbridge and Enterprise expect that the reversed Seaway Pipeline will be fully contracted. The partners anticipate conducting an open season to validate shipper support for an expansion of Seaway, through looping or twinning.

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After reversing the direction that crude oil flows on the 805 km, 30 inch diameter, long-haul pipeline, Seaway will deliver crude from Cushing into the Houston area market by utilising existing affiliate and third party pipelines, as well as its Texas City local pipeline system.

Enbridge and Enterprise plan to build a 72 km pipeline that will link Seaway directly to Enterprise's ECHO crude oil storage terminal located southeast of Houston. This will provide shippers with enhanced connectivity and more efficient transportation to the Houston refining market. Additional investment required by the joint venture partners to reverse the line and construct supporting lateral and related facilities is expected to be approximately $US300 million.

Pending regulatory approval, the line could operate in reversed service with an initial capacity of 150,000 bbl/d by second quarter 2012.