Enbridge System: Crude Types, Enbridge System: Crude Types, Transportation and Quality Transportation and Quality PerformancePerformance

Ashok AnandSenior Manager, Petroleum QualityFebruary 2011

Ashok AnandAshok AnandSenior Manager, Petroleum QualitySenior Manager, Petroleum QualityFebruary 2011February 2011

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Certain information provided in this presentation constitutes forward-looking statements. The words "anticipate", "expect", "project" and similar expressions are intended to identify such forward looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Enbridge assumes no obligation to publicly update or revise any forward looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

Forward Looking StatementsForward Looking Statements

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WoodRiver

Ottawa

Saint John

Kansas City

Superior

Clearbrook

Zama

Fort McMurray

Montreal

TorontoBuffalo

Regina

Hardisty

Patoka

CasperSalt Lake City

Houston

Toledo

Edmonton

Norman Wells

Fort St. John

Cushing

Inuvik

El Dorado

Sarnia

Chicago

Seattle

Portland

Enbridge Liquids Pipeline Enbridge Liquids Pipeline OverviewOverview

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Alberta Oilsands Regional Pipeline DevelopmentAlberta Oilsands Alberta Oilsands Regional Pipeline DevelopmentRegional Pipeline Development

Cheecham Terminal

Waupisoo Pipeline - 30” diameter, 390 km.’s,

350 KBPD initial capacity-In service now

Opti-Nexen (Long Lake)ConocoPhillips/Total (Surmont)

Waupisoo Pipeline

EnCana (Christina Lake)

PetroCanada (MacKay River)

Athabasca Pipeline

Suncor

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Mainline ExpansionsMainline Expansions-- Alberta ClipperAlberta Clipper

Montreal

Toronto

Gretna

Regina

Hardisty

Kerrobert

Cromer

Clearbrook

Superior

Toledo

Sarnia

Chicago

Buffalo

Edmonton

Lockport

Enbridge Mainline

Patoka

Flanagan

WoodRiver

Chicap/MustangSpearhead

nNew 36” diameter line, Hardisty to Superior, 1,000 miles

n450 kbpd additional capacity into Chicago

Alberta Clipper

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Montreal

Toronto

Gretna

Regina

Hardisty

Kerrobert

Cromer

Clearbrook

Superior

Toledo

Sarnia

Chicago

Buffalo

Edmonton

Lockport

Mainline Expansion –Southern Access Expansion Mainline Expansion Mainline Expansion ––Southern Access Expansion Southern Access Expansion

Enbridge Mainline

Patoka

Flanagan

WoodRiver

Chicap/MustangSpearhead

Southern Access Expansion

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180 kbpd diluent capacity

Contract pipeline

Mainline Expansion Mainline Expansion Southern Lights Diluent SupplySouthern Lights Diluent Supply

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Crude Oil Prices Crude Oil Prices ––2009 Average2009 Average

Crude Type Batch ID Long Name Crude Type Batch ID Long Name

Heavy ‐ High Tan

AWB Access Heavy Blend

Sour

SLE EDM Low Sulphur

MKH Mackay River Heavy LSB Light Sour Blend

PH Peace River Heavy SHE Edm High Sulphur

PSH Long Lake Heavy MJT Moose Jaw Tops

SH Seal Heavy SO Mixed Blend Sour

SHB Surmont Heavy Blend UOC US Sour Clearbrook

Heavy

AHS Albian Heavy Synthetic FOM Foreign Sour Mokena

ARB Albian Resid Blend

Sweet

SW Mixed Sweet Blend

BR Bow River UHM Foreign Sweet Mokena

CL Cold Lake FHN US Sweet Mokena

F Fosterston UHC US Sweet Clearbrook

LLB Lloydminister Hardisty

Synthetic

PSC Opti/Nexen Light Synthetic

LLK Lloydminister Kerrobert HSB Husky Syntheric Blend

SC Smiley Coleville NSA Newgrade Synthetic Blend

WCB Western Canadian Blend OSA Suncor A

WCS Western Canadian Select OSC Suncor C

WH Wabasca Heavy PAS Premium Albian Synthetic

Heavy ‐ Low Resid OSH Suncor H SPX Shell Synthetic

AVB Albian Vacum Blend SSX Shell Synthetic Light

Medium M Midale SYN Syncrude

UMC US Midale Clearbrook CNS CNRL Light Sweet Synthetic

Heavy – Cracked OCC Suncor Coker Blend Condensate OSN Suncor N

PBS Pine Bend Special CRW Condensate Blend

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Enbridge Commodity TypesEnbridge Commodity Types(Enbridge.com & crudemonitor.ca)(Enbridge.com & crudemonitor.ca)

API %S MCR TANHeavy 19-21 2.6-4.5 8.5-11.3 0.5-1.05Heavy Hi Tan 19-21 3.0-4.5 7.5-10 1.4-3.5Heavy Lo Resid 20 3.0 <1.0 3.5Medium 30-35 2.5 6.0 0.2Sour 30-35 1.1-1.8 4.0-6.0 0.3Sweet 40 <0.5 2.0 0.2Lt Sweet Synthetic 30-35 0.1-0.25 <0.5 0.1Condensate 60 0.2 - -OlefinicNGLRefined Products

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Quality Management of Commodities in Quality Management of Commodities in Enbridge Batched PipelineEnbridge Batched Pipeline

• Enbridge controls quality of delivered crude in the following ways.– In the Pipe: Manage Interface - number, type, size,

cut• Line Splits:Like Commodities in segregated lines• Line Rates: Turbulent flow to minimize interface sizes• Batch Sizes: Minimum 60KB, Multiples batch trains• Batch Sequence; Based on least contamination risk• Batch Cuts (Interfaces): Mid point

– In the Tank• Tank Bottoms Crossing• Tank Selection/Terminal Piping/Service Change

Core Liquid Pipelines Core Liquid Pipelines --Number & TypeNumber & Type

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The Quality Matrix The Quality Matrix –– Number & Number & TypeType

CRUDE TYPE MATRIX - THE QUALITY PROCESSHeavy -TAN Heavy Medium Sour Sweet Synthetic Condensate

Heavy -TAN 1 2 3 4 5 6 7Heavy 2 1 3 4 5 6 7Medium 7 6 1 2 3 4 5Sour 7 6 2 1 3 4 5Sweet 7 6 5 4 1 2 3Synthetic 7 6 5 4 3 1 2Condensate 7 6 5 4 3 2 1

The above numbers rank the order (as a guideline) that should be follow ed w hen changing from crude types.One being f irst choice. Seven being the last choice.When making sequence decisions betw een crudes of the same type(Heavy-Heavy).Reference the crude prices for best choice.

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Line Rates at Turbulent flow Line Rates at Turbulent flow --sizesize

Turbulent Flow

Laminar Flow

Notice the increased size of the mixing area from the Turbulent to Laminar flow

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In The TankIn The Tank

• Tank Selection - This is important to determine the amount of contamination created from station piping. This may increase or decrease depending on the location of the tank and the amount of common piping. Most sensitive crude types closest to manifold.

• Tank Bottoms Crossing - The procedure for this is outlined in the Service Levels (Table 5). Outlines how each commodity is treated through tankage at every location from receipt to delivery.

• Tank Service Change - Follows a rigid procedure to minimize contamination.

• Tank Cleaning - Can cause a product to be delivered with a high S&W which can cause refinery problems. Procedure in place to monitor and restrict high S&W

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Special ProceduresSpecial Procedures

• High Tan (Total Acid Number >1.0) commodities have dedicated tanks or flush batch (destined to same facility) is required if routed through a regular heavy tank.

• Cracked products contain olefins desired by very few refineries. Cracked products require both front and back buffers that are sized to contain the cracked crude interfaces. The whole train (buffers and crude) moves into the same refinery.

Enbridge WTI/DSW PlanEnbridge WTI/DSW Plan

• SAMPLES: Enbridge will obtain 2 random samples per week of WTI/DSW being delivered from our Cushing Terminal. One such sample will be a delivery into Ozark while the second sample will be any random delivery to many of the 3rd party terminals connected to our Cushing facility;

• TESTING: All testing against the proposed new specifications will be conducted at the Enbridge laboratory in Cushing. All testing costs for the 2 per week samples will be borne by Enbridge.

• TEST DATA: All the collected data may be shared with the industry at large such as COQA with Enbridge shippers’ approval. All references to batch numbers and destination locations will be omitted in any such public disclosure.

• FUTURE: Any increase in this sample and test program and also testing on the receipt side will be dependent on the results of the delivery tests. Any such escalation including cost sharing will be discussed with Marathon and other Enbridge shippers of WTI/DSW.

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Quality Performance Quality Performance -- AverageAverage

• Synthetic Sulphur– Hypothetical Receipt synthetic: 0.15%– Average Chicago delivery: 0.21%– Average Sarnia delivery: 0.17%

• Sweet Sulphur– Hypothetical Receipt synthetic: 0.50%– Average Chicago delivery: 0.56%– Average Sarnia delivery: 0.51%

• Heavy MCR – very commodity dependent– Generally Chicago swings average: +/- 0.7 points– Generally Sarnia swings average: +/- 0.6 points

• Heavy TAN – very commodity dependent– Generally Chicago swings average: +/- 0.1 point– Generally Sarnia swings average: +/- 0.2 points

Enbridge Pipelines (North Dakota)Enbridge Pipelines (North Dakota)Enbridge Pipelines (North Dakota)

Project Description: Project Description: Portal Reversal Expansion Project Portal Reversal Expansion Project (PREP)(PREP)

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Scope: Reactivation and reversal of Portal Link Receipts from Berthold Truck Station connection Berthold deliveries into Westspur system at Border Westspur deliveries to Enbridge Canadian Mainline

at Cromer Planned In-service: Q1 2011 Nominations into Westspur System limited to 25k bpd

(available capacity in Canadian feeder pipeline)

Saskatchewan Manitoba

Enbridge Pipelines(North Dakota)

North Dakota MinnesotaMontana

ReserveGrenora

Alexander

BEAVERLODGE Stanley

Lignite

BERTHOLD

Minot

CLEARBROOK

Trenton

CROMER

WeyburnSteelman

Midale

Alida

Portal Link

Virden

EPI Mainline

Portal Reversal  Expansion Project:

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Project Description – Bakken Pipeline Expansion Project (BPEP)

Scope: Expand PREP capacity into

Steelman New 16” line from Steelman

to Cromer Initial capacity: 145k bpd Planned In Service Date: Q1 2013

Saskatchewan Manitoba

Enbridge Pipelines(North Dakota)

North Dakota MinnesotaMontana

ReserveGrenora

Alexander

BEAVERLODGE Stanley

Lignite

BERTHOLD

Minot

CLEARBROOK

Trenton

CROMER

WeyburnSteelman

Midale

Alida

Portal Link

Virden

EPI Mainline

Bakken Pipeline Expansion Project:Berthold to Cromer

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SummarySummary

• Growth expected in new and existing crude types – some challenging

• Enbridge infrastructure being expanded to connect increased supply sources to existing & new markets

• Great strides made in last 6 years on Quality performance – ITS metrics

• Quality metrics principles/practices extended to all expanded infrastructure