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Paolo Mastronardi, Manager, Business Development

November 16, 2017

Dawn Hub – Successfully Meeting Market Growth

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Agenda

• Enbridge/Union Gas Overview

• The Value of Dawn – Defining

Liquidity

Supply & Demand at Dawn

Infrastructure Expansions

Storage Expansion

• Expansions Challenges

• Mitigation

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Dawn

Enbridge Assets

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Union Gas

• Major Canadian natural gas storage, transmission and distribution company based in Ontario

• Over 100 years of experience and safe service to customers

• Dawn Storage facility – largest underground storage facility in Canada

• Dawn Hub, the second most traded hub in North America

• Assets of $8.2 billion, ~1.5 million customers, ~2,300 employees

• One of Canada's Top 100 Employers 2011-2017

• An Enbridge company

1.5 Million Retail Customers

1.2Tcf

Pipeline Throughput

65,390 km / 40,630 mi Distribution Pipe

278 Bcf

Storage Capacity

4,850 km / 3,015mi Transmission Pipe

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LIQUID

HUB

The Value of Dawn – Defining Liquidity

Storage

Gas Supply

Take Away

Buyers & Sellers

Price Discovery

Trading Activity

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Sourcing Supply at the Dawn Hub

Winter 3.2 Bcf/d Summer 3.0 Bcf/d

Gas Supply

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Existing Supply

New Supply

DAWN HUB

Sourcing Supply at the Dawn Hub Diversity = Reliability

Abundant and diverse natural gas serving the growing needs of the market

Gas Supply

DAWN

LTFP

NEXUS

ROVER

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Average Daily Dawn System Demand

Take Away

Winter 4.2 Bcf/d Summer 2.4 Bcf/d

Total Peak Demand – ~ 8.7 Bcf/d

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Brantford-Kirkwall Pipeline (2015)

Parkway West & Parkway D

Compressors (2015)

Lobo C Compressor (2016)

Hamilton-Milton Pipeline (2016)

Dawn Compressor (2017)

Lobo D Compressor (2017)

Bright C Compressor (2017)

Bluewater

St. Clair

Ojibway

Lobo

Bright

Kirkwall

Parkway

Maple

Dawn

Dawn – Downstream Connectivity Expansion Projects

Take Away

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2015-2017 Dawn Parkway System Growth 1.2 Bcf ~85% contracted by Ontario/Québec LDCs with a 15 year term

Dawn – Downstream Connectivity Utilities Supporting Expansion

2015-2017 Expansion Capacity

Take Away

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11 DAWN HUB

New markets and growing Dawn demand

The energy

advantage for

Eastern Canada

and U.S.

Northeast

Downstream Connectivity Growing connectivity to meet market demand

Take Away

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• 278 Bcf – Total Storage

• 120 Bcf total merchant storage

• 5.5 Bcf Peak Day Deliverability

– 3.1 Bcf/d Union Gas

– 2.4 Bcf/d Enbridge Gas Distribution

• Storage Enhancement Projects:

– 2016/17 - 3.2 Bcf incremental storage space

– 2017/18 - ~0.2 Bcf/d of incremental deliverability

– Post 2019 – incremental space

Dawn Storage Growing to Meet Demand

Storage

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• External Issues:

– Stakeholder requirements differ at federal, provincial and municipal levels

– Permitting process changes

• Internal Issues:

– Growth outpacing available resources

– Definition of roles and responsibilities

• Union’s multi-million expansion project faced some hurdles

Infrastructure Challenges

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• Stakeholder outreach plan

• Development of a centralized permitting group

• Escalation process when delays occur

• Development of tools to track status

Infrastructure Challenges - Mitigation

www.uniongas.com

Questions?