A Northern Gas Pipeline:A Northern Gas Pipeline:The Big PictureThe Big Picture

Patrick D. Daniel Patrick D. Daniel President & CEO President & CEO

Enbridge Inc. Enbridge Inc.

:

Far North Oil & Gas ConferenceSeptember 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

Enbridge:North and South America

Jose

Northern ExpertiseEnbridge 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

Inuvik

Norman Wells

Zama

Norman Wells Crude Oil Pipeline

Northern Expertise

Inuvik

Norman Wells

Zama

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

Inuvik Gas

Enbridge is involved in the production, processing, transmission and distribution of northern natural gas to the Town of Inuvik.

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

The Alternatives

Prudhoe Bay

Fort St. John

Inuvik

Norman Wells

Fort Simpson

W hitehorse

Zama

Fort McMurray

Northern RouteMackenzie Valley Pipeline Southern Route

Edmonton

Anchorage

Yellowknife

Fairbanks

CalgaryVancouver

Pt. Thomson

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

The need for a broad perspective.