Feb. 3, 2006 — Ipsco Inc. has received a commitment from Enbridge reserving Ipsco's large diameter pipe mills for the Waupisoo Pipeline Project and Stage 1 of the Southern Access Expansion Project.

With these new commitments, Ipsco expects that its large diameter pipe mill will operate near capacity for the balance of the year. Ipsco will begin production for the Enbridge order — approximately 160,000 tons of spiral welded pipe — in the second half of 2006. Specifications are still being finalized.

The 380-kilometer long Waupisoo Pipeline will transport crude oil from the Alberta oil sands to the Edmonton area refinery hub. Stage 1 of the Southern Access Expansion Project includes 321 miles of pipeline from Superior, Wis., that will increase crude transportation capacity to the greater Chicago market.

"We are very pleased with the confidence that Enbridge has shown in our large diameter pipe manufacturing capabilities," said Ipsco Executive Vice President and Chief Commercial Officer John Tulloch. "We look forward to working on these two significant projects with Enbridge."

Ipsco operates steel mills at three locations and pipe mills at six locations in Canada and the United States. As a low cost North American steel producer, Ipsco has a combined annual steel making capacity of 3,500,000 tons. The company's tubular facilities produce a wide range of tubular products including line pipe, oil and gas well casing and tubing, standard pipe and hollow structurals, for a combined annual capacity of 1,725,000 tons. Steel can also be further processed at Ipsco's five temper leveling and coil processing facilities.