SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act
of 1934
for the period ended 29 August
2008
BP p.l.c.
(Translation of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the
registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F
|X| Form 40-F
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----------------
Indicate by check mark whether the registrant by furnishing the
information
contained in this Form is also thereby furnishing
the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of
1934.
Yes
No |X|
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Enbridge and BP
Announce
Agreement to
Develop Delivery System
for Canadian crude oil
from Illinois to the
U
.
S
.
Gulf Coast
CALGARY,
Alberta
and WARRENVILLE, Ill.
- August 29, 2008 - Enbridge Inc. (TSX:ENB) (NYSE:ENB) and BP
Pipelines (North America) Inc. announced today they have entered into an agreement
to develop a new delivery system to transport Canadian heavy crude oil from
Flanagan, Illinois, to Houston and Texas City, Texas, using a combination of
existing facilities and new pipeline construction where required.
The new delivery system is expected to be in service by late
2012 with an initial total system capacity of 250,000 barrels per day (bpd) into
the Gulf Coast. Enbridge and BP intend to use the BP #1 System and other existing
pipelines north of the Cushing, Oklahoma, crude oil hub with some new pipeline
construction south of Cushing, to connect to markets in Houston and possibly
Nederland, Texas. Initial receipts at Flanagan, where the system would interconnect
with Enbridge Energy Partners' Southern Access pipeline, would be approximately
140,000 bpd with deliveries to Gulf Coast markets.
The remaining
110,000 bpd would originate from interconnecting
pipelines at Cushing.
"This proposed project offers timely and economic access for
shippers to the U.S. Gulf Coast market," said Steve Wuori, Executive Vice
President, Liquids Pipelines, Enbridge, Inc. "The new system would be a
continuation of our phased approach to Gulf Coast market access, which has the
objectives of minimizing capital cost and financial commitments required of
shippers, maximizing use of existing pipelines and rights-of-way and ensuring
attractive producer netbacks."
The project would be timed to coincide with the projected
ramp-up of crude oil production in western Canada. It would be complementary to
Enbridge's other market initiatives including the Trailbreaker Project, which is
planned to offer Gulf Coast access by tanker from Portland, Maine, by mid-2010; the
Southern Access Extension, which is expected to facilitate both heavy and synthetic
crude access to Patoka, Illinois, by 2011; and the Texas Access Pipeline, which is
positioned to move greater crude oil volumes from Patoka to the Gulf
Coast
at the time required by the market.
"These options offer unparalleled flexibility to shippers, and
this project reflects our objective to provide our customers with the best
transportation solutions available," said Mr. Wuori.
Jim Lamanna, president, BP Pipelines (North America) Inc.,
said "This proposal is consistent with BP's goals of maximizing value from existing
assets and minimizing environmental impacts. Combined with the construction and
operating experience of these two companies, the proposed new delivery system will
offer shippers the economics, predictability and flexibility that are required in
this high-cost environment. Also, timely redeployment of existing facilities
significantly reduces the environmental impact associated with alternative proposed
cross-country pipelines."
A BP Pipelines affiliate is expected to be a significant
committed shipper on the proposed system. Enbridge and BP Pipelines would make
capacity available to other potential shippers on terms competitive with other Gulf
Coast delivery proposals through
commercial arrangements targeted to be concluded
this
F
all.
Terms will
be
subject to approval by applicable regulatory authorities. The
two companies plan to operate the pipeline system by way of a joint venture,
subject to completing final agreements and securing other required
approvals.
Enbridge Inc., a Canadian company, is a leader in energy
transportation and distribution in North America and internationally. As a
transporter of energy, Enbridge operates, in Canada and the U.S., the world's
longest crude oil and liquids transportation system. The Company also has
international operations and a growing involvement in the natural gas transmission
and midstream businesses. As a distributor of energy, Enbridge owns and operates
Canada's largest natural gas distribution company, and provides distribution
services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs
approximately 5,600 people, primarily in Canada, the U.S. and South America.
Enbridge's common shares trade on the Toronto Stock Exchange in Canada
and
on the New York Stock Exchange in the U.S. under the symbol
ENB. Information about Enbridge is available on the Company's web site
at
www.enbridge.com.
BP Pipelines (North America) Inc. is part of BP plc and one
of the largest liquids pipeline companies in the U.S., transporting more than 1.6
million barrels per day of oil, refined products, natural gas liquids and other
products.
Altogether, BP Pipelines (North America) Inc. operates
about 6,000 miles of pipelines owned and operated by BP or its subsidiaries,
affiliates and joint ventures, and holds joint venture interests in another
approximately 3,000 miles of pipelines, which are operated by third
parties.
www.bp.com
The joint investment in the phased capacity additions is
expected to be in the range of US$1b
illion
to US$2
b
illion
.
FOR FURTHER INFORMATION PLEASE CONTACT:
Email:
chris.martin@enbridge.com
(403) 508-6563 or Toll Free: (888) 992-0997
Email:
jennifer.varey@enbridge.com
Email:
usmedia@enbridge.com
Email:
vern.yu@enbridge.com
Website:
www.enbridge.com
BP Pipelines (North America) Inc.
BP Pipelines (North America) Inc
-ENDS -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
BP p.l.c.
(Registrant)
Dated: 29 August 2008
/s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary