1. Petroleum Products in Western Canada

2. Western Canada Refining Esso, Shell, PetroCanada in Edmonton – 400 Mbd ChevronTexaco in Vancouver – 50 Mbd Husky in Northern BC – 10 Mbd Co-op in Saskatchewan – 70 Mbd All run light sweet crude and/or synthetic

3. North American Pipelines, Refinery Centres and US Markets

4. Western Canada Product Balances Mogas –Balanced or short in summer –Long in winter Diesel –Generally long or balanced all year –Syncrude plants now making diesel, will increase length Jet –Short jet, significant volume to diesel for pour in winter –Significant portion of Vancouver airport supplied by imports

5. Trans Mountain Pipe Line (TMPL) Ships crude, products and MTBE/isooctane in single line Capacity about 240,000 bpd, typically not full * Crude goes to Vancouver, Puget Sound refiners, export Mogas and diesel to supply Southwestern BC, export MTBE to California, will be replaced with isooctane

6. System Map

7. Influences on TMPL Throughput Puget Sound refiners demand for Canadian crude –Depends on price vs. ANS Exports of crude from TMPL’s Vancouver terminal –Heavy crude reduces capacity Turnaround activity at Edmonton refineries –BC supplied by imports, reduced shipments ex Edmonton Significant increase in synthetic crude in Alberta –May look to export some via West Coast TMPL could “dust off” expansion plans if capacity consistently constrained.

8. Canadian Low Sulphur Fuels All mogas 30 ppm avg, 80 ppm max Jan 2005 Ultra low sulphur diesel 15 ppm June 2006 Unlikely that Western Canadian supply will be significantly impacted by new regulations Major issue around shipping low sulphur products in a crude pipeline

9. Low Sulphur Products in TMPL Products have been shipped in TMPL since mid 80’s Products pick up sulphur in pipeline Not an issue when sulphur spec is 200+ ppm With low sulphur fuels, product will need treatment at end of pipe or ????? Product shippers currently studying this problem

10. Isooctane Alberta Envirofuels plant in Edmonton 50/50 JV between ChevronTexaco and Fortum Recently converted from MTBE to isooctane Isooctane: 100 octane, low vapour pressure, no aromatics, low olefin Isooctane production less than MTBE Destined for California market

11. Summary Western Canada likely to remain fairly balanced TMPL is crucial to BC supply TMPL is proven, reliable, well maintained Shipping low sulphur products in TMPL is an important issue that will be resolved