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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,

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Presentation on theme: "1 NEW BAKKEN MARKETS VIA PIPELINE Williston Basin Petroleum Conference May 22 to 24, 2012 Perry Schuldhaus Vice President, Regional Pipeline Development,"— Presentation transcript:

1 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 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 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 4 Enbridge Current Asset Structure Geothermal Electric

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

6 6 Recent Bakken Pipeline Initiatives

7 7 Next Major Expansion: Project Sandpiper Superior Option Capacity225 – 325 KBPD In Service Date2015 Presidential Approval Not Required Regulatory Jurisdiction U.S. SANISH

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

9 9 Fundamentals Upper Midwest Refinery Demand Changes Refinery Feedstock Change (kbpd) YearLightHeavy ConocoPhillips Wood River2011-130+160 BP Whiting2013-260+260 Marathon Detroit2013-65+80 Total-455+500 Source: Enbridge Internal Forecast Significant new heavy crude demand in the upper Midwest Light crude will need to find a new market

10 10 Crude Oil Disposition By Market

11 11 Text goes here Bullet points go here Strategic Position Enbridge 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 Montreal Toronto Gretna Regina Hardisty Kerrobert Superior Toledo Buffalo Edmonton Houston Detroit Clearbrook Flanagan Fort McMurray Cromer Cushing Patoka Chicago Wood River Sarnia Enbridge Inc. Enbridge Energy Partners L.P.

12 12 Enbridge Expanded Market Access Norman Wells Zama Edmonton Hardisty Fort McMurray Portland Seattle Casper Montreal Salt Lake City Patoka Toledo Toronto Buffalo Cushing Wood River Houston Superior Chicago Clearbrook Regina Ottawa Sarnia Flanagan Mainline Optimization 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 Eastern Access U.S Gulf Coast Access

13 13 Text goes here Bullet points go here Cushing Texas City & Port Arthur Chicago/ Flanagan 1 Enbridge Mainline System New Market Extensions U.S. Gulf Coast Access 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 Enbridge Spearhead Pipeline 2 3 2. Flanagan South Pipeline Enbridge Inc. 100% 36 inch twin Spearhead Pipeline In-Service mid-2014 Initial capacity = 585 kbpd 3. Seaway Pipeline Twin Enbridge Inc. and Enterprise JV Twin Seaway Pipeline In-service mid-2014 Initial capacity = 450 kbpd

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

15 15  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 Seaway Reversal and Expansion

16 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 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 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

19 19 Line 9B Reversal – Open Season Open Season for Line 9B underway –Runs from May 17 th to June 15 th 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:

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

21 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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