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A Northern Gas Pipeline: The Big Picture. Patrick D. Daniel President & CEO Enbridge Inc. : Far North Oil & Gas Conference September 20, 2001. The Bottom Line. Project economics must be positive and robust Political / Social issues must be resolved
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A Northern Gas Pipeline:The Big Picture Patrick D. Daniel President & CEO Enbridge Inc. : Far North Oil & Gas Conference September 20, 2001
The Bottom Line • Project economics must be positive and robust • Political / Social issues must be resolved • Either pipeline route can be effectively constructed and operated • Two routes cannot be developed at the same time • There is also an alternative that can’t be ignored
Northern Expertise Enbridge built, and since 1985 has owned and operated the only major pipeline in the NWT. • Right-of-Way = 869 km (540 mi) • Pump stations = 3 • Pumps = 6 • Employees = 20 • 2000 payroll = $1.5M • 2000 capital investment = $568,000 • 2000 property taxes = $1.4M • 2000 power costs = $760,000 Norman Wells Crude Oil Pipeline
Northern Expertise Enbridge is involved in the production, processing, transmission and distribution of northern natural gas to the Town of Inuvik. Inuvik Gas Cdn $44 million project: • Two wells • Production facility • 50 kilometre pipeline • 25 kilometre distribution system • 500th customer Aug. 2001 • Partners: • Inuvialuit Petroleum Corporation • AltaGas Services • Enbridge
A Continental Energy Issue • North America is headed for a 30-plus TCF market • No single source will meet growth in demand • Continental decision-making required • Northern gas and WCSB are part of a continental supply solution to a continental demand challenge
Hot Topics • Routing • Will two routes go ahead at the same time? • Northern Route is feasible • Pipeline ownership • Regulatory process
Success requires: • Continental decision-making • Robust project economics • Common understanding • Cooperation of all stakeholders