TERASEN PIPELINES GETS SUPPORT TO CONTINUE WEST COAST PROJECT.

(Full text of statement. Contact details below.)

CALGARY, Jan. 31 /CNW-AsiaNet/ --

Terasen Pipelines is pleased to announce that it has received strong support from 17 different parties including existing and new customers to proceed to the next phase of the Trans Mountain system expansion project ("TMX"). The TMX Project will provide additional pipeline capacity to the west coast and offshore markets for growing oil sands production.

Customers who participated in TMX's Expression of Interest process over the past two months have indicated the need for additional capacity out of Alberta by 2008, to serve west coast and offshore markets. Customers have also indicated the need for significant expansion of the Trans Mountain system beyond 2008, which would see the current system's capacity of 225,000 bpd more than double by 2010. This additional capacity can be most effectively brought on-stream using a staged expansion of the existing Trans Mountain oil pipeline system.

"We are very pleased with the support we have received and we are moving full steam ahead with the project," said Rich Ballantyne, President, Terasen Pipelines. "Existing and new customers have indicated that the TMX staged approach offers the right solution to a west coast pipeline expansion. We look forward to bringing this vision to reality."

Pending final commercial arrangements and regulatory approvals, Terasen Pipelines' initial expansion phase - TMx1 - will increase the system's capacity from 225,000 bpd to 300,000 bpd by the end of 2008. This initial expansion will be achieved by adding 35,000 bpd of capacity by the end of 2006 through the addition of pump stations along the pipeline system, followed by looping 178 kilometres of its system, providing an additional 40,000 bpd by the end of 2008. Further expansion will see the system's capacity increase to up to 850,000 bpd.

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