enbridge's experience in colombia€™s...ii colombia oil and gas investment conference...
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II Colombia Oil and Gas Investment Conference
Cartagena, ColombiaDecember 2006
Enbridge InternationalIndependent Midstream Expertise
Enbridge’s Experience in Colombia
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Presentation ObjectivesPresentation Objectives
Introduction to EnbridgeAn overview of Enbridge InternationalOur strategyHow we add valueEnbridge in ColombiaCriteria for international investments
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Who is Enbridge?Who is Enbridge?
North American leader in energy deliveryEssential link between supply and demandClose to 80,000 km of pipelineUS$12 billion market capitalizationOver US$15.0 billion in assets“A” credit ratingEmploys more than 4,000 people in Canada, USA, Latin America, and Europe
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WoodRiver
Spain
Three Strong BusinessesConnecting Supply With DemandThree Strong BusinessesConnecting Supply With Demand
Ottawa
Saint John
Kansas City
SuperiorClearbrook
Zama
Fort McMurray
Montreal
TorontoBuffalo
Regina
Hardisty
Patoka
CasperSalt Lake City
Houston
Toledo
Edmonton
Norman Wells
Fort St. John
Cushing
Inuvik
El Dorado
SarniaChicago
Gas Distribution
Liquids PipelinesGas Pipelines
Seattle
Portland
38%38%
10%10%29%29%
10%10%13%13%
2005 Adjusted Earnings
Gas Distribution
Gas Pipelines
Sponsored Investments
International
Liquids Pipelines
OCENSA
Bogotá
Coveñas
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Other New Market (C$ 1 B)
Southern Access Extension
(US$ 350 M)
Southern Lights (US$ 920 M)
Spearhead Pipeline (US$ 200 M)
Alberta Clipper (US$2.1B)
Gateway(C$4.0 B)
Regional Infrastructure(C$1.9B)
Southern Access Expansion (US$1.3 B)
Exxon Mobil
Enbridge PipelinesEnbridge Energy PartnersPotential Projects
RefineriesCanadian Supplied Not Canadian Supplied
Liquids Strategy Broadening Market AccessLiquids Strategy Broadening Market Access
Chicago
Edmonton
Zama
Fort McMurray
Montreal
TorontoBuffalo
Patoka
Casper
Norman Wells
Cushing
Vancouver
Houston
Hardisty
Salt Lake City
Kitimat
Regina
Major Announced Projects In-Service
Spearhead Q1 2006
Gulf Coast Q1 2006
Southern Access Expansion 2009
Southern Access Extension 2009/2010
Southern Lights 2009
Alberta Clipper 2010
Gateway 2010
Seattle
Portland
WoodRiver
Superior
Contract Terminalling(C$1.4B)
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Enbridge Pipelines
EEP Infrastructure
Alliance Canada (ENF)
Potential Projects
Gas Distribution
Sarnia
Edmonton
Fort St. John
LNG
LNG
Chicago
Houston
Toronto
Quebec City
Gas StrategyLinking Growing Supply to MarketGas StrategyLinking Growing Supply to Market
Inuvik
Alliance Pipeline
Mackenzie Delta
Alaska Pipeline
VectorPipeline
New Orleans
Rabaska(C$280 M, 2010)
Kansas City
East Texas Expansion
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International CLHInternational CLH
3,400 km of products pipelines€1.54 billion assetThroughput of 768,000 b/dEnbridge (25%), Repsol-YPF (25%), CEPSA (Total), Oman Oil, BP, Disa, China Aviation Oil, and GALPFee for service model83% market share SpainSpain
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OCENSA
Bogotá
Conveñas
Cusiana/Cupiagua
International OCENSAInternational OCENSA
820 km crude oil pipelineUS$2.3 billion assetEnbridge operatedCapacity of 550,000 b/dThroughput of 235,000 b/dEnbridge (24.7%), Ecopetrol, BP, and TotalFull cost of service modelMoves 100% of volumes from the Cusiana/Cupiagua fields
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Enbridge in ColombiaEnbridge in Colombia
OCENSA has performed as expectedEntered Colombia in 1994 with construction of OCENSAPartner and operator (CitCol) in OCENSA
OCENSA is operated as a prudent North America operator adapted to local conditionsHSE and CSR performance, including human rights, have been consistent with North American standards
ISO 14001/OHSAS 18001 certifiedHuman Rights Policy and Code of ConductAnnual Corporate Social Responsibility reportBe prepared for some NGO questioning
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Enbridge in ColombiaEnbridge in Colombia
Enbridge is pleased with the support it receives from partners, the government, and local communitiesPeople and asset security has improved but it is still a challengeEnbridge is interested in additional investments in Colombia
Political and regulatory stability
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Key International StrategiesKey International Strategies
Exploit core competencies in ownership of energy infrastructure
Operating and project management expertiseIndependence – energy midstream onlySignificant regulatory experience in multiple jurisdictionsStrong financial positionEfficient deal structuring experience
Lever relationships with key partners, energy majors, and significant regional playersFocus on regions with compelling energy fundamentals and political stability
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Opportunities of InterestOpportunities of Interest
Greenfield and acquisition projects:Oil, gas, and products pipelinesMarine terminalsOil and gas storageNatural gas distribution
Projects that:Generate superior risk adjusted returnsAllow Enbridge to have significant governance and operating roleAllow Enbridge to add valueHave local partnersHave attractive fundamentals of supply, market demand, and commercial arrangements
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SummarySummary
Enbridge – North American leader in energy deliverySeeking new opportunities in regions of interestEnbridge adds valueEnbridge is interested in additional investments in Colombia
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Contact InformationContact Information
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Enbridge Inc.3000, 425-1st Street S.W.Calgary, Alberta, Canada T2P 3L8Telephone: (403) 231-3900Website: www.enbridge.comStock symbols: ENB-T, ENB-N
Enbridge International Inc.Leigh S. CruessPresident, Enbridge International Inc.3000, 425-1st Street S.W.Calgary, Alberta, Canada T2P 3L8Tel: +1 (403) 231 5700
Algimantas DidziulisVice President Commercial Affairs & Business DevelopmentCalle 98 No. 9-03, of 501Edificio SanchoBogotá, ColombiaTel: +57 (1) 623 5904