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Liquids Pipelines Steve Wuori
President, Liquids Pipelines & Major Projects
This presentation includes certain forward looking information (FLI) to provide Enbridge shareholders and
potential investors with information about Enbridge and management’s assessment of its future plans and
operations, which may not be appropriate for other purposes. FLI is typically identified by words such as
“anticipate”, “expect”, “project”, “estimate”, “forecast”, “plan”, “intend”, “target”, “believe” and similar words
suggesting future outcomes or statements regarding an outlook. Although we believe that our FLI is
reasonable based on the information available today and processes used to prepare it, such statements are
not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its
nature, FLI involves a variety of assumptions, risks, uncertainties and other factors which may cause actual
results, levels of activity and achievements to differ materially from those expressed or implied in our FLI.
Material assumptions include assumptions about: the expected supply and demand for crude oil, natural gas
and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates;
inflation; interest rates; the availability and price of labour and pipeline construction materials; operational
reliability; anticipated in-service dates and weather.
Our FLI is subject to risks and uncertainties pertaining to operating performance, regulatory parameters,
weather, economic conditions, exchange rates, interest rates and commodity prices, including but not limited
to those discussed more extensively in our filings with Canadian and US securities regulators. The impact of
any one risk, uncertainty or factor on any particular FLI is not determinable with certainty as these are
interdependent and our future course of action depends on management’s assessment of all information
available at the relevant time. Except to the extent required by law, we assume no obligation to publicly
update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this
presentation is expressly qualified in its entirety by these cautionary statements.
This presentation will make reference to certain financial measures, such as adjusted net income, which are
not recognized under GAAP. Reconciliations to the most closely related GAAP measures are included in the
earnings release and also in the Management Discussion and Analysis posted to the website.
Legal Notice
2
Liquids Pipelines & Major Projects Leadership Team
3
Chief Operating Officer
Leon Zupan
Senior VP Business
& Market
Development
Vern Yu
Senior VP Major Projects
Byron Neiles
VP Strategy & Integrated Services
David Bryson
VP Customer Service
Sonya Buys
VP Finance
Bill Ross
President, Liquids Pipelines & Major Projects
Steve Wuori
North America Crude Oil Pricing
Asia
$96
$96
$112
Alberta
Light
WCS
Bakken
Light
Brent
Maya
Pricing as at September 25, 2013
(USD per barrel)
$89
$108
$105
LLS
$103
WTI
$117
Light Crude
Heavy Crude
*Brent price is a landed price on US East Coast/ US Gulf
Coast. Assumed tanker freight cost of US$2.00 per bbl.
*
4
$72
North American Supply
North American Demand
Public Opposition to
Infrastructure
Transportation Bottlenecks
Volatile Price Differentials
North American Crude Supply Growth (2013 - 2025)
Bakken
Eagle Ford
Permian Basin
Other
Niobrara
Oil Sands
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Heavy Light
Cardium, Viking, Duvernay
Sources: Enbridge Internal Forecast and External Forecasts
5
+ 7 MMbpd by 2025
MMbpd
Pricing History
($50)
($40)
($30)
($20)
($10)
$0
$10
$/bbl
WTI-Brent WCS-Maya
2010 2011 2013 2012
6
WCS Remains Disadvantaged
2013 Light & Heavy Markets
Source: StatsCan, EIA, Enbridge Internal Forecasts 7
Light Markets
• East Coast
• Eastern PADD II
• PADD III
Heavy Markets
• PADD II
• PADD III
US Refining Crude Coverage
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2013F 2015 2020 2025
US Production Waterborne Imports Imports from Canada
MMbpd
U.S. Production Displaces Waterborne Imports
Sources: Enbridge Internal Forecast
8
Providing New Market Access (Heavy & Light)
Norman Wells
Zama
Edmonton
Fort McMurray
Portland
Seattle
Casper
Montreal
Salt Lake City
Patoka
Cushing
Superior
Chicago
Clearbrook
Regina
Flanagan
Hardisty
Toledo Sarnia
Buffalo
Houston
St. James
Cromer St. John
+600 kbpd
Heavy
+80 kbpd
Heavy
+250 kbpd Light
+50 kbpd Heavy
+300 kbpd Light
Western USGC Access
($6.4B)
Eastern Access
($2.7B)
Light Oil Market Access
($6.3B) +50 kbpd Light
Incremental Market Access Volumes
+ ~1.0 MMbpd of Heavy
+ ~0.7 MMbpd of Light
+50 kbpd Light
Nanticoke
+1.7 MMbpd New Market Access by 2015
+250 kbpd
Heavy
9
System Reliability & Integrity
10
• Risk Management
– Risk Policy, Risk Framework, Risk Culture
Survey + Training
• Inline inspection (ILI)
– Significant dig program 3,400 pipe joints
examined followed with non-destructive testing
– Research and Development in tool
enhancements - Medical imaging technology
• On-line sensors
– Pressures/cycling, pipe movement, external
& internal corrosion, vibration
• Surveys
– Pipe depth, river crossing and geotechnical
conditions, corrosion control, 3rd party activity
• Incident Response
– Focused Emergency response tactical plans
• Health + Safety
– Process safety management implementation
Liquids Pipelines Vern Yu
Senior Vice President, Business & Market Development
WCSB Pipeline Takeaway Capacity*
*Includes Bakken entering ENB Mainline 12
OTHER
ENB
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
20
13
-Q1
201
4-Q
1
201
5-Q
1
20
16
-Q1
201
7-Q
1
201
8-Q
1
20
19
-Q1
202
0-Q
1
202
1-Q
1
202
2-Q
1MMbpd
2013 Enbridge Forecast 2013 Enbridge Upside Forecast Optimal Pipeline Capacity
Sources: Enbridge Internal Forecast
• Keystone XL
• ENB Northern Gateway
• TransMountain Expansion
• Energy East
Alberta Regional Projects
NTD: Secured capital does not align with LRP (2013 – 2017) - Fort Hills and Norlite should be classified as unsecured?
13
Edmonton
Alberta
Hardisty
Cheecham
Terminal
Kirby
1
2
3
4 5
6
7
8
9
10
Waupisoo Pipeline
Athabasca Pipeline
Athabasca Twin Pipeline
Woodland Pipeline
Woodland Pipeline Extension
Norealis Pipeline
Total Potential Capital ~$4 B
1
2
3
4
- Expand Waupisoo Pipeline to
550 kbpd (In-service)
- Expand Athabasca Pipeline to
570 kbpd (PH2 2014)
- Twin Athabasca Pipeline
450 kbpd (2014)
- Woodland Pipeline
400 kbpd (In-service)
- Norealis Pipeline
90-270 kbpd (2013) 5
- Wood Buffalo Pipeline
(In-service) 6
- Suncor Bitumen Blend
(In-service) 7
- AOC Hangingstone Lateral
20 kbpd (2015) 8
- Surmont Cheecham Facilities
(Q4 2014/ Q1 2015) 9
- Woodland Pipeline Extension
400 kbpd (2015) 10
• Industry Diluent Pipeline (Norlite)
Potential Projects:
• Cheecham to Edmonton Pipeline
• Cheecham to Hardisty Pipeline
• Gathering Laterals
Secured Projects:
Total Secured Capital = $4.5 B* * Includes ~$1.0B of projects that came into service in 2012
11
- JACOS Lateral
40 kbpd (2016) 11
Industry Diluent Pipeline (Norlite)
NTD: Secured capital does not align with LRP (2013 – 2017) - Fort Hills and Norlite should be classified as unsecured?
14
Edmonton
Terminal
Alberta
Hardisty
Cheecham
Terminal
Athabasca
Terminal
Norealis
Terminal
Wood Buffalo Pipeline
Woodland Pipeline Extension
Norlite Diluent Pipeline
Stonefell Terminal
Keyera Laterals
(existing)
Waupisoo Pipeline
Athabasca Pipeline
Total Potential Capital ~ $1.4 B
Base Case:
• Scope: 489km, 16” pipeline
• Expected In-service: Q2 2017
• Capacity: 200 kbpd
Expanded Case:
• Scope: 489km, 24”/20” pipeline
• Expected In-service: Q2 2017
• Capacity: 270 kbpd
• Keyera has the option to participate
in the project with a 30% working
interest
Bakken Crude Oil Supply vs. Pipeline Takeaway Capacity
15
Range of External Supply Forecasts
Tesoro Mandan Refinery
Enbridge Berthold Rail ND
Baker Take-away (Platte)
Plains Bakken North
Enbridge Sandpiper
0.0
0.5
1.0
1.5
2.0
2.5
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
MMbpd
Enbridge Bakken Expansion Program
Enbridge North Dakota to Clearbrook
Bakken Regional Projects
16
Clearbrook
Gretna
Saskatchewan
Minot
Lignite
Weyburn
Cromer
Berthold
Steelman
Tioga Stanley
to Superior
Total Secured Capital = $0.7 B
Enbridge Mainline
North Dakota System
Bakken Expansion Project
• 145 kbpd (In-service)
Saskatchewan System (ENF)
Bakken Access Program
(well connections)
• 100 kbpd (2013)
Berthold Rail
• 80 kbpd (In-service)
Sandpiper
Clearbrook
Superior
Sarnia
Chicago
Patoka
Toledo
Montreal
Westover
Hardisty
Cushing
EEP Funded
Sandpiper
• Scope: 614 mile, 24”/30” pipeline
• Capacity: ~225 kbpd/375 kbpd
• ISD: Early 2016
Regina
Gretna
17 Total Secured Capital = $2.6 B*
* Total Secured Capital of $2.6B is a component of Light Oil Market Access Program
Cushing
Houston
Chicago/
Flanagan
Port Arthur
Seaway Pipeline Acquisition + Reversal ($1.3B)
• Enbridge Inc. and Enterprise JV
• Initial capacity 150 kbpd, up to 400 kbpd by Q1 ‘13
• Reversal started May 2012
• Connectivity to ECHO Terminal in 2013 (65 miles)
Seaway Pipeline Twin + Lateral ($1.1B)
• Enbridge Inc. and Enterprise JV
• Twin Seaway Pipeline (515 miles)
• Initial capacity 450 kbpd, In-service mid-2014
• Connectivity to Port Arthur (85 miles)
Flanagan South Pipeline ($2.8B)
• Enbridge Inc. 100%
• Twin Spearhead Pipeline (36-inch pipeline, 591 miles)
• Initial capacity 585 kbpd, expandable to 800 kbpd
• In-service mid-2014
Market Access – Western U.S. Gulf Coast Access
18
1
3
1
2
3
2
* Excluding associated Mainline expansions
Total Secured Capital = $5.2 B*
Market Access – Eastern Access
Clearbrook
Superior
Sarnia
Chicago
Patoka
Toledo
Montreal
Westover
Hardisty
Cushing
EEP/ENB joint funded
ENB funded
1. Line 5 Expansion +50 kbpd (In-Service)
2. Spearhead North Expansion +105 kbpd (2013)
3. Line 6B Replacement +260 kbpd (2014)
4. Line 9A Reversal +240 kbpd (In-Service)
5. Line 9B Reversal +240 kbpd (2014)
6. Toledo Pipeline Twin +80 kbpd (In-Service)
19 Total Secured Capital = $2.7 B
1
2
3
4
5
1
2
6
4
5
3
6
Market Access – Light Oil Market Access
Clearbrook
Superior
Sarnia
Patoka
Toledo
Montreal
Westover
Hardisty
Flanagan
Chicago
ENB funded
EEP/ENB joint funded
EEP funded
1. Sandpiper Pipeline +225-375 kbpd (2016)
2. Line 62 Twin +570 kbpd (2015)
3. Line 6B Expansion (2016)
4. Line 9 Expansion +60 kbpd (2014)
5. Southern Access Extension +300 kbpd (2015)
Gretna Cromer
20 Total Secured Capital = $4.4 B*
1
2
3
4
5
3
1
2
4
5
Stockbridge
* Excluding associated Mainline expansions
Enbridge Mainline Expansions
Toledo
21
Superior
Chicago
Flanagan
Clearbrook
Fort McMurray
Edmonton
21 Total Secured Capital = $4.9 B
Sarnia
Toledo
Edmonton to Hardisty
Alberta Clipper
Southern Access
Western U.S.
Gulf Coast
Light Oil
Market Access
Canadian Mainline Terminal Capability
($0.6B) – 2013/2015
Edmonton to Hardisty
($1.8B) – 2015
Alberta Clipper to 570 & 800 kbpd
($1.0B) – 2014/2015
Southern Access to 560 kbpd
($0.2B) – 2014
Southern Access to 1,200 kbpd
($1.3B) – 2015
Southern Lights Expansion
Regina Gretna
Superior
Chicago
Flanagan
Clearbrook
Kerrobert
Cromer
Sarnia
Toledo
Fort McMurray
Edmonton
Southern Lights
Hardisty
22
Southern Lights Expansion:
• Open season before end of 2013
• Capacity: +95 kbpd (to 275 kbpd)
• ISD: Q4 2016
Total Potential Capital ~ $0.7 B
New Initiatives – Enhanced Market Access
23 Total Potential Capital ~ +$7.5B
Norman Wells
Zama
Edmonton
Fort
McMurray
Portland
Seattle
Casper
Salt Lake City
Patoka Cushing
Ottawa Superior
Chicago
Clearbrook
Regina
Flanagan
Hardisty
Toledo
Toronto
Wood
River
Sarnia Buffalo
Montreal
East
South
+525 kbpd
+120 to
200 kbpd
+400 kbpd
+200 kbpd
West
Houston
West
• Northern Gateway Pipeline
East
• Chicago Rail
South
• Flanagan South /
Seaway Expansion
• Southern Access
Extension Upsize
• Eastern U.S. Gulf Coast
Access
+300 kbpd
~1.7 MMbpd of potential new market access
+100 kbpd
Zama
Key Takeaways
24
• North American crude oil fundamentals support
significant investment opportunities
• Enbridge system provides the best netbacks
for Shippers
• Regional Oil Sands investment opportunities
continue to be robust
Liquids Pipelines
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