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  1. North American Oil and Gas Pipelines: Redrawing the Map Stephen J.J. Letwin Executive Vice President 27th USAEE/IAEE North American Conference September 16 – 19, 2007

  2. Agenda • Enbridge Overview • Crude Oil Pipeline Story • Natural Gas Pipeline Story • New Pipeline Construction Risks

  3. Energy DeliveryLiquids and Natural Gas Seattle Portland Covenas OCENSA Bogotá • Liquids pipelines • Gas Pipelines • Gas Distribution • Gathering & Processing • Wind Power • International Inuvik Norman Wells Zama Fort St. John Fort McMurray Edmonton Hardisty Regina Clearbrook Saint John Montreal Superior Ottawa Casper Toronto Buffalo Salt Lake City Sarnia Chicago Spain Toledo Kansas City Patoka Wood River El Dorado Cushing Liquids Pipelines Houston Gas Pipelines Gas Distribution

  4. Crude Oil Pipline Story

  5. North American Crude Oil Pipelines

  6. Historical Flow Pattern

  7. Western Canadian Oil ProductionMarket Unconstrained Case Forecast Historical 2007 CAPP Pipeline Planning Case 2007 Potential Raw Bitumen Synthetic Light Synthetic Heavy Conventional Heavy Pentanes Plus Conventional Light

  8. Future Flow Pattern + - - +

  9. Liquids StrategyBroadening Market Access Norman Wells Enbridge/Lakehead System Other Pipelines Refineries: Canadian Supplied No/Limited Cdn Supply Zama Fort McMurray Tanker Port Hardisty Edmonton Puget Sound Great Falls Clearbrook Montreal Billings Superior Mandan Toronto Salt Lake City Casper Sinclair Buffalo St. Paul Detroit San Francisco Chicago Toledo Cheyenne Lima Canton Wood River McPherson Denver Robinson Bakersfield El Dorado Patoka Coffeyville Catlettsburg Los Angeles Ponca City Tulsa Cushing Memphis Ardmore Artesia Borger/Sunray El Paso Big Spring Port Arthur Houston Lake Charles Texas City New Orleans Freeport Corpus Christi

  10. Liquids StrategyMajor Projects Proceeding Enbridge Liquids System Southern Access Alberta Clipper Southern Access Extension SpearheadExpansion Major Projects ProceedingCostIn-Service Contract Terminaling Hardisty (Upstream) $ 0.4B 2008 Stonefell (Upstream) $ 0.1B 2008 Cushing (Downstream) $ 0.1B 2007 Other $ 0.2B 2007-09 Regional Infrastructure Athabasca $ 0.2B 2007 Waupisoo $ 0.5B 2008 Southern Access Expansion $ 2.2B 2006-09 Extension $ 0.4B 2009 Spearhead Expansion $ 0.1B 2009 Alberta Clipper $ 2.9B 2010 Southern Lights $ 1.4B 2010 Line 4 $ 0.3B 2008 Total Capital $ 8.8B Contract Terminaling Fort McMurray Edmonton Regional Infrastructure Hardisty Kerrobert Regina SOUTHERN LIGHTS REVERSED LINE 13 Cromer Gretna SOUTHERN LIGHTS LIGHT SOUR CRUDE (new construction) Clearbrook Montreal SOUTHERN LIGHTS (new construction) Superior Toronto Casper Buffalo Sarnia Lockport Detroit Toledo Chicago Flanagan Canton Contract Terminaling Lima Wood River SPEARHEAD Patoka Catlettsburg Exxon Mobil Mid Valley Cushing Capline Corsicana Beaumont Houston

  11. Natural Gas Pipeline Story

  12. North American Gas Pipelines

  13. Natural Gas Supply Changes + + + + + + + + + + + - - - Alaska Mackenzie WCSB Rockies Increased Flow Decreased Flow Appalachia Supply Increase Midcon/ Permian LNG Supply Decrease Increased LNG LNG GOM

  14. Gas Pipelines Proposed/Under Construction Rocky Mountain Express Midcontinent Express Ozark Express Gulf Grossing Clarity Others

  15. Gas StrategyAsset Positioning Inuvik Alaska Pipeline Mackenzie Delta Fort St. John Rabaska Edmonton Alliance Pipeline Quebec City LNG Toronto Gas Storage Sarnia Chicago Enbridge Inc. Pipelines Gas Distribution Enbridge Energy Partners Enbridge Income Fund Potential Projects Kansas City VectorPipeline East Texas Expansion New Orleans Houston Neptune Shenzi LNG

  16. Pipeline Project Risk

  17. North American Pipeline Construction • Potential Pipeline Requirements* * Estimate as of Jan ‘07

  18. New Pipeline Project Risks • Supply/Demand • Construction costs • Environment • Competition • Regulatory • Operating

  19. Supply: Drilling Linked to Pricing

  20. Future supply linked to continued drilling

  21. Construction Pressures • Steel • High Chinese Demand • Pipe Mill Space • 3,200 miles/year capacity for 24”+ • Lay Costs • Only 25 Spreads available • Right of Way • Higher congestion, more vocal opposition • Workforce • Retiring skilled labor not being replaced

  22. Risk Strategies • Strong project management • Joint Ventures • Long term agreements • Take or Pay Contracts • Legislative stability

  23. North American Oil and Gas Pipelines: Redrawing the Map Stephen J.J. Letwin Executive Vice President Gas Transportation & international