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Enbridge Pipeline Capacity Expansions - Benefits to Williston Basin

Williston Basin Conference 2007Brad Shamla

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About Enbridge

Ottawa

Spain

Saint John

Kansas City

SuperiorClearbrook

Zama

Fort McMurray

Montreal

TorontoBuffalo

Regina

Hardisty

Patoka

CasperSalt Lake City

Houston

Toledo

Edmonton

Norman Wells

Fort St. John

Cushing

Inuvik

Chicago

WoodRiver

El Dorado

Gas Distribution

Liquids TransportationGas Transmission

• Operates world’s longest liquids pipeline and Canada’s largest natural gas distribution company

• Interest in 80,000 km (50,000 miles) of pipelines

• Delivers 2 MM BPD of liquids

• Handles 5 BCF/D of gas

• Employs 5,000 people

• Wind development capacity of 270 MW

• One of the Global 100: Most Sustainable Corporations

OCENSA

Bogotá

Covenas

Colombia

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Saskatchewan/Manitoba Gathering Systems Organic Growth Overview

ENBRIDGE PIPELINES (WESTSPUR) INC.

ENBRIDGE PIPELINES (VIRDEN) INC.

ENBRIDGE PIPELINES (WEYBURN) INC.ENBRIDGE PIPELINES (SASKATCHEWAN) INC.

Cromer

Virden

ALIDA

STEELMAN

MIDALEWEYBURN

Oungre

Lake Alma

Weyburn

Estevan

Parkman

Gapview

Carlyle

Willmar

Innes

Benson

Ingoldsby

Hitchcock-Macoun

NottinghamWest Kingsford

Portal Link Tesoro Interconnect

ENBRIDGE PORTAL PIPELINE (IDLED)

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Enbridge Pipelines (Weyburn) Weyburn to Midale Expansion

• Additional production from Weyburn field• Installation of 2 new pumps and motors,

maximizing capacity within existing pipe maximum operating pressures

• Operational Q1 2007

Sask25%

CANADAU.S.A.

Man

.Sa

sk.

Weyburn System Expansion

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Enbridge Pipelines (Westspur) Midale to Steelman Expansion

• Debottlenecking of Westspur 12-inch –West Area

• Installation of a mid-point booster station between the Midale and Steelman terminals

• To be completed for Q2 2007

Sask25%

CANADAU.S.A.

Man

.Sa

sk.

Westspur System Expansion

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Enbridge Pipelines (Westspur)Alida to Cromer Expansion

• New Westspur 6-inch for NGL – Alida to Cromer• Convert existing 12-inch line to crude oil service • Additional crude oil capacity - 77,000 bpd• Awaiting regulatory approval • Scheduled completion for Q4 2007

Westspur System Expansion

CANADA

U.S.A.

Man

.

Sask

.Alida

Cromer

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Future Expansions: Saskatchewan& Manitoba Gathering Systems

• Recently received 5yr Forecast (2007-2011) shows further increase to SE Saskatchewan production

• Additional capacity expansion proposals being developed

• Discussions to occur with customers to secure support for additional expansions

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New or Expanded Pump Stations

Hydrotests

Line Looping

Tankage Upgrades

Adds 30,000 – 40,000 barrels per day of capacity

Costs $70 - $76 million, Completion 4th Quarter 2007, FERC Approved 5 Year Surcharge

Saskatchewan Manitoba

CANADA

North Dakota Minnesota

Montana

Reserve

Grenora

Trenton

Alexander

BeaverLodge

Stanley

Plaza/WabekFields

Lignite Sherwood

Maxbass

Berthold

Minot

Glenburn

Newberg

PleasantLake

Bartlett

Crookston

Clearbrook

East Fork

North Dakota Gathering System Current Expansion

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120/11096/9080/76Minot to Clearbrook

107/100 (Possibly more with DRA)

84/78 73/67Beaver Lodge to Minot

93 (Possibly more with DRA)

63/5848Alexander to Beaver Lodge

Estimated Expanded Line Capacity Bpd(Summer/Winter)

Estimated Current Line Capacity Bpd

with DRA(Summer/Winter)

Line Capacity Bpd Before Hydrotest

without DRA(Summer/Winter)

Line Segment

EPND Current Capacity Solutions Summary

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Canadian Supply Growth

Western Canadian crude oil production is expected to grow from 2.2 million Bpd today to 4.7 million Bpd by 2020.

0

500

1000

1500

2000

2500

3000

3500

4000

4500

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1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

(000 BPD)

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500

1,000

1,500

2,000

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6,000(000 BPD)

Conventional Light

Synthetic Light

Raw Bitumen

Conventional HeavyPentanes Plus Synthetic Heavy

ForecastHistorical2007 Potential

2007 Risked

2007 Risked

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Requires New Market Access

Major refinery hubsCurrently receive Canadian crudeRefineries that are gradually

increasing or considering Canadian supplies

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Solutions: Pipeline Expansions

Detroit

Chicago

PatokaWood River

Cushing

Flanagan

Delavan

SuperiorClearbrook

CromerRegina

Kerrobert

Hardisty

Fort McMurray

Edmonton

• Enbridge has more than $12 billion of liquid pipeline expansions underway

• Adding up to 1.2 million barrels per day of capacity in stages

• Extending access to growing Canadian production

• Growing crude storage and merchant business

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Enbridge Liquids Pipelines Expansions

2007-2009>8 million bblsvariousStations and Terminals

Mid-2008350,000 bpd234 mi/30-inchWaupisoo

Early 200965,000 bpdStation/LoopingSpearhead Expansion

2012 - 2014400,000 bpd715 mi/36-inchGateway

Start-upInitialCapacity

Miles/sizeProject

End 200730,000 bpd52 mi & stationsNorth Dakota System

End 2009450,000 bpd990 mi/36-inchAlberta Clipper

313 mi/20-inch

674 mi/20-inch

454 mi/42-inch175 mi/36-inch

End 2008186,000 bpdSouthern Lights crude

Mid-2010180,000 bpdSouthern Lights diluent

First Qtr 2008, and Early 2009

400,000 bpd (three stage)

Southern Access Expansion/Extension

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Southern Access

• Hardisty - Superior315 kbpd initial capacityHorsepower additions

• Superior to Chicago400 kbpd initial capacity456 miles of 42” pipe1,200 kbpd ultimate

Chicago to Patoka400 kbpd initial178 miles of 36” pipe

• In service Q1 2009

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Alberta Clipper

• System expansion Hardisty to Superior

• In service as early as Q4 2009

• Traditional rolled-in toll design

• Initial Design– 450 kBD initial capacity– 1000 miles of 36” pipe– $1.9 B (2006 USD)– In service as early as

2009• Under review with

industry

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Eastern PADD II

Multiple alternatives

Incremental capacity by 2008-2010

expansions/new builds

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US Gulf Coast

• Four primary greenfield alternatives

• 400 kBD initial volume scenarios

• $US 4.30 / bbl to $US 3.75 / bbl

• Options for reversal of existing facilities could provide earlier access for up to 200 kBD

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Gateway

• Focus on Commercial Development

Anchoring commitments to Asian markets are continuing under active discussion and will set schedule for completion

• RegulatoryNEB applications are ready to file

• Technical Work Complete

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Diluent capacity180 kBD initial330 + kBD ultimate

45 kbpd light crude capacity increase Committed and uncommitted capacity Indicative standalone toll US $3.00 per barrelCrude oil toll reduction of US 2-3 cents per barrelIn service mid-2010

Southern Lights

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Summary

• Growth in Canadian production and supply fundamentals is driving major pipeline projects

• Increasing North American energy security• New pipeline infrastructure creating new

markets to protect value of production