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NEW BAKKEN MARKETS VIA PIPELINE

NEW BAKKEN MARKETS VIA PIPELINE. Williston Basin Petroleum Conference May 22 to 24, 2012 Perry Schuldhaus Vice President, Regional Pipeline Development, Enbridge Pipelines, Inc. . Forward Looking Statements.

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NEW BAKKEN MARKETS VIA PIPELINE

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  1. NEW BAKKEN MARKETS VIA PIPELINE Williston Basin Petroleum Conference May 22 to 24, 2012 Perry Schuldhaus Vice President, Regional Pipeline Development, Enbridge Pipelines, Inc.

  2. Forward Looking Statements • Certain information provided in this presentation constitutes forward-looking statements. The words "anticipate", "expect", "project" and similar expressions are intended to identify such forward looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Enbridge assumes no obligation to publicly update or revise any forward looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

  3. Agenda • Asset Overview • Crude Oil Supply Picture • Bakken Expansion Projects • Current Crude Disposition By Market • North American Pipeline Expansions in Progress • Increasing Gulf Coast Access • Increasing Eastern Market Access • Conclusion

  4. Enbridge Current Asset Structure Geothermal Electric

  5. Bakken Supply Forecast (Source: Enbridge internal forecast)

  6. Recent Bakken Pipeline Initiatives

  7. Next Major Expansion: Project Sandpiper SANISH

  8. Bakken: The Opportunity KBPD Production Forecast: Enbridge Bentek Energy to 2016 Other Rail Projects: 748 KBPD 2014 Other Pipeline Projects Sandpiper: ~225 KBPD 2015 Classic: 210 KBPD 2011 Enbridge Portal Reversal: 25 KBPD 2011 BEP: 120 KBPD 2013 Rail: 80 KBPD 2013 Butte Pipeline: 200 KBPD 2012 Tesoro, Mandan: 68 KBPD 2013

  9. FundamentalsUpper Midwest Refinery Demand Changes • Significant new heavy crude demand in the upper Midwest • Light crude will need to find a new market Source: Enbridge Internal Forecast

  10. Crude Oil Disposition By Market

  11. Strategic PositionEnbridge Mainline System • Competitive Advantages: • Scale: 2.5 million bpd • Significant potential supply growth • Access to highest netback markets • Well positioned for extension to new markets • Low cost expansion • Multiple lines: quality/reliability Fort McMurray Edmonton Hardisty Kerrobert Regina Cromer Enbridge Energy Partners L.P. Gretna Enbridge Inc. Clearbrook Montreal Superior Toronto Sarnia Buffalo Detroit Chicago Toledo Flanagan Patoka Wood River Cushing Houston

  12. Enbridge Expanded Market Access Norman Wells Zama Fort McMurray Mainline Optimization Edmonton Hardisty Regina Seattle Clearbrook Montreal Superior Eastern Access Ottawa Portland Toronto Buffalo Sarnia Casper Toledo Chicago Flanagan Salt Lake City Patoka Wood River U.S Gulf Coast Access Cushing • Gulf Coast Access Program: • Flanagan South • Seaway reversal • Seaway twinning • Eastern Access Program: • New Line 79 (twins Line 17) • Line 6B replacement segments • Full reversal of Line 9 • Mainline Optimization: • Expand existing Mainline System with horsepower, tanks and system optimization • Edmonton to Chicago Houston

  13. New Market ExtensionsU.S. Gulf Coast Access Enbridge Mainline System Chicago/ Flanagan • 2. Flanagan South Pipeline • Enbridge Inc. 100% • 36 inch twin Spearhead Pipeline • In-Service mid-2014 • Initial capacity = 585 kbpd Enbridge Spearhead Pipeline 2 • 1. Seaway Pipeline • Enbridge Inc. and Enterprise JV • First delivery to Freeport early June 2012 • Initial capacity = 150 kbpd light service • Planned capacity = 400 kbpd mixed service • Connectivity to ECHO terminal in 2013 • Connectivity to Port Arthur in 2014 Cushing 1 3 • 3. Seaway Pipeline Twin • Enbridge Inc. and Enterprise JV • Twin Seaway Pipeline • In-service mid-2014 • Initial capacity = 450 kbpd Texas City & Port Arthur

  14. Enbridge - Flanagan South • 36 inch new build pipeline • Initial capacity of 585 kbpd • Expansion capability to 800 kbpd

  15. Seaway Reversal and Expansion • Reversal of 30” Seaway in 2012 • Initial Capacity of 150,000 bpd in light service commencing June 2012 • Planned capacity of 400,000 bpd in mixed service in 2013 • Construction of parallel 510-mile, 30 inch diameter pipeline to be completed in mid-2014 • Adds 450,000 bpd • More than doubles system capacity to 850,000 bpd • 85 mile pipeline from Enterprise’s Echo terminal near Houston to Port Arthur

  16. Crude Oil Storage Capacity • Contract Tankage • One of the largest storage owner/operators at Cushing • Long term fee based contracts • Staggered maturities • Creditworthy customers • Capital recovery over initial term • Operational Tankage • Manage overall system flexibility • Return on investment included in tolls • $0.1B of capital projects underway

  17. Projects Advantages • Project certainty • Seaway will begin moving barrels south from Cushing in 2012 • Provides needed pipeline capacity • Relief of Cushing oversupply • Growing Bakken and Canadian supply • Toll certainty for committed shippers • No capital cost exposure • Flexible origination points and market destinations • Operational storage • Enbridge Mainline, Cushing and in US Gulf Coast

  18. Eastern Access – Line 9 Reversal • Line 9A • Sarnia to Westover • Broadens access to the Ontario refining market • Application before the NEB • In-Service first half of 2013 • Line 9B • Westover to Montreal • Application to be filed in fall of 2012 • Opens access to the Quebec refining market • In-Service spring of 2014 9B 9A

  19. Line 9B Reversal – Open Season • Open Season for Line 9B underway • Runs from May 17th to June 15th • Total capacity of 240,000 bpd • 180,000 bpd for committed volumes to Montreal • 35,000 bpd for committed volumes to Westover • 25,000 bpd dedicated to spot volume • Open Season information available at: http://line9.enbridge.com/

  20. Market Access for Bakken Production Portland Kitimat Fort McMurray Cheecham Edmonton Hardisty Kerrobert Come by Chance Puget Sound Regina Cromer Gretna Saint John Halifax Clearbrook Montreal Billings Superior Mandan St. Paul Toronto Casper Salt Lake City Buffalo Sinclair San Francisco Cheyenne Toledo Chicago New Jersey Lima Philadelphia Denver Wood River Robinson El Dorado Coffeyville Patoka Los Angeles Borger/Sunray Tulsa Catlettsburg Cushing Enbridge System Memphis Ardmore Flanagan South/Seaway Pipeline Connected Carriers Houston Lake Charles Refineries: Texas City Port Arthur New Orleans Enbridge Bakken Access Corpus Christi

  21. Conclusion • Enhancing and developing critical infrastructure to link North American Production with US Refining Centers. • Providing increased transportation alternatives for Producers and Shippers to access key US markets. • Decreasing dependence on less secure energy supply from overseas. • Positive Impact on the US Economy.

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