1. A Northern Pipeline Not if, but When? A Northern Pipeline Not if, but When? 4th Annual Far North Oil & Gas Conference September 30, 2002 Presented by: Wayne Sartore VP Northern P/L Development

2. North American Natural Gas Reserves Northern Frontier Arctic Islands Atlantic Canada Eastern US Gulf of Mexico Gulf Coast US Heartland Rockies and West Western Canada

3. Gas Balances and Flow Changes – 2001 to 2011 Net Change in Supply/Demand Balance (bcf/day) Incremental Gas Flows (bcf/day) 3.4 -0.5 0.4 1.3 1.1. 2.7 -2.3 -3.2 -5.7 0.5 -0.7 0.0 0.2 -2.6 -0.2 -3.0 -1.8 -2.8 1.3 -0.2 1.1 2.9 0.2 4.8 6.2 3.6 0.6 1.4 0.6 2.3 5.5 0.6

4. A Continental Energy Issue n It is !! n Continental approach requires: –stakeholder cooperation –additional infrastructure –coherent, long-term plan n Leave these at the door: –regional self-interest –political in-fighting –market distortion mechanisms

5. Who’s Who and the Routes Alaskan Gas Producers (AGP) British Petroleum (BP)ConocoPhillips ExxonMobil State of Alaska Alaska Others EnCana (AEC)AnadarkoChevronTexaco ShellPetroCanada Mackenzie Delta Producers Group (MD4) Imperial Oil Ltd (IOL)ConocoPhillips (Gulf) ExxonMobilShell Mackenzie Delta Explorers (MD 7 ) EnCana (AEC) AnadarkoChevronTexaco BurlingtonDevon (Anderson) British Petroleum (BP) PetroCanada NWT Others Canadian Natural Resources Ltd (CNRL) Canadian Forrest Oil International Frontier Devlan Exploration Northrock Resources EOGResources Pacific Rodera Ventures Hunt Oil Paramount Resources

6. Prudhoe Bay Inuvik Norman Wells Whitehorse The Proponents - The Studies Mackenzie Delta Producers (MD-4) - Have completed a feasibility study and are into Project definition on a Mackenzie Valley “Stand-alone pipeline. Expect an NEB filing by mid - 2003. Alaska Gas Producers (AGP) - Studying economic feasibility of both north & south routes

7. Northern Expertise n Enbridge has substantial experience constructing and operating northern infrastructure projects…. Alaska Inuvik Norman Wells Zama Inuvik Gas Norman Wells Pipeline

8. “Northern” Pipeline Challenges Prudhoe Bay Inuvik Norman Wells Anchorage Whitehorse Yellowknife Edmonton Unique “Northern” P/L Issues n Frontier supply source n Capital Cost / Risk n Geography and Remote Access n Permafrost

9. Challenges / Opportunities n Design n Environmental / Geotechnical n Construction logistics n Operations n Maintenance

10. Construction Logistics n Early transportation planning n Camp requirements n Staging of materials

11. n Integrity Management in permafrost –Geo-pig Northern Pipelines - Operations

12. A Successful Northern Pipeline Development - What will it take?? 1. Project economics must be positive and robust. 2. The Core Producers will direct the development. 3. Political / Social issues must be resolved. 4. Aboriginal ownership must be supported. - What is the “right” level of equity ownership? 5. Experience counts!! …… and adds value... - Enbridge should be participating in development. 6. A pipeline design that provides for expansion at a reasonable cost for all.

13. Enbridge: North & South America

14. A Northern Pipeline A Northern Pipeline QUESTIONS ??