The thrust of the Company's current strategy is growth through development and construction of new infrastructure. The Company is advancing the development of a number of organic growth projects, some of which are summarized below, which support annual organic earnings per share growth rates averaging 10% 'plus' over the 2007 to 2012 time frame. These projects are at various stages of development; some are recently completed and in service.
While different milestones are relevant to each, for simplicity management has classified projects into two categories Commercially Secured and Under Development. Commercially Secured projects, including those being undertaken by EEP, are largely expected to be completed within the next two years. Projects Under Development are those which the Company believes it has a reasonable probability of competitively winning but has not yet completed commercial terms for. While Enbridge will undertake acquisitions that are accretive to earnings on an opportunistic basis, growth project execution remains the Company's primary near term focus. The following table summarizes commercially secured projects that have not yet been placed into service.
|Commercially Secured Projects 1||Estimated
Capital Cost 2
(in billions of Canadian dollars unless stated otherwise)
|1.||Southern Access Mainline Expansion Canadian portion||$0.2 billion||$0.2 billion||2008||Substantially complete|
|2.||Line 4 Extension||$0.3 billion||$0.2 billion||Early 2009||Under construction|
|3.||Spearhead Pipeline Expansion||US$0.1 billion||US$0.1 billion||First half of 2009||Under construction|
|4.||Hardisty Terminal||$0.6 billion||$0.4 billion||2009
|5.||Southern Lights Pipeline||$0.5 billion + US$1.7 billion||$0.3 billion + US$0.9 billion||Light Sour Line Early 2009; Diluent Line Late 2010||Under construction|
|6.||Alberta Clipper Canadian portion||$2.4 billion||$0.8 billion||Mid-2010||Under construction|
|7.||Fort Hills Pipeline System||~$2.0 billion||$0.1 billion||No earlier than 2012||Being reevaluated|
|8.||EEP Southern Access Mainline Expansion U.S. portion||US$2.1 billion||US$1.9 billion||2008 - 2009
|9.||EEP North Dakota System Expansion||US$0.1 billion||No significant expenditures to date||Q1 2010||Under construction|
|10.||EEP Alberta Clipper U.S. portion||US$1.2 billion||US$0.1 billion||Mid-2010||Awaiting regulatory approval|
|11.||EIF Saskatchewan System||$0.1 billion||No significant expenditures to date||Q3 2010||Pre-construction|
- Descriptions of each project are included in the strategy section for each business segment.
- These amounts are estimates only and subject to upward or downward adjustment based on various factors.
Risks related to the development and completion of organic growth projects are described under Risk Management.