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1
Future ProjectsCEPA Supplier’s Conference
Calgary, AlbertaNovember, 2008
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The Next 45 Minutes……..
• Who is CEPA?• CEPA Priorities• Company Project Updates• Summary
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CEPA Membership
• Transport 97% of the crude oil and natural gas produced in Canada
• Oil pipeline systems are near capacity
• New natural gas supply needs to be connected to existing pipeline systems
• Collective assets must significantly expand next 15 years
Full and Technical Members• TransCanada• Enbridge• Spectra• Alliance• Kinder Morgan Canada• TransGas• ATCO• Trans-Northern• Foothills• Trans Québec & Maritimes• Portland to Montreal• Pembina Pipelines• BP Canada Energy Company • Maritimes & Northeast Pipeline• Inter pipeline Fund• Access Pipeline• Terasen
Gas
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Associate Members
• BJ Pipeline Inspection Services• CDI Professional Services Ltd.• Deloitte• Fraser Milner Casgrain• GAZ Metro• IPSCO Inc. (Canada)• IPSCO Inc. (USA)• Miller Electric Manufacturing• OSM Tubular Camrose• Pipe Line Contractors
Association of Canada• Shaw Pipe Protection Ltd.• T.D. Williamson Canada ULC• Toronto Dominion Bank
• Rosen Inspection• Stikeman Elliott
SpectrSpectr
Kinder Kinder
AccesAcces
Anchorage
Prudhoe Bay
Norman Wells
Whitehorse
Prince Rupert
Kitimat
Prince George
Taylor
Rainbow Lake Zama
Fort McMurray
LloydminsterEdmonton
HardistySundre
Kerrobert
Cutbank
Great Falls
KamloopsVancouver
AnacortesOlympia
Portland
Seattle
Spokane
Empress Regina
WinnipegCromerGretna
Mandan
Clearbrook
Thunder Bay
Superior
St. Paul
Lockport Chicago
Moosonee
Timmins
Sudbury North BayOttawa
Montreal
Quebec City St. John
Halifax
Port Hawkesbury
St. John’s
Portland
Boston
Philadelphia
Warren
Oakville
Sarnia
Nanticoke
DetroitToledo
CantonLima
Catlettsburg
Memphis
PatokaRobinson
WoodRiverMcPherson
El Dorado
Ponca CityCushing
BorgerTulsa
Coffeyville
Wynnewood
ColoradoCity Tyler
El Dorado
New Orleans
St. JamesCorpus ChristiThree Rivers Freeport
Houston
Port Arthur
Lake Charles
Longview
Big Spring
Artesia
El Paso
Billings
Casper
Salt Lake City Sinclair
Cheyenne
Denver
Guernsey/Ft. Laramie
Long BeachLos AngelesTorrance
BakersfieldSanta Maria
AvonSan Francisco
TransTrans--
Sunray
BB
EnbridgEnbridg
Canadian Oil Facts Canadian Oil Facts ––
20072007
2.8 million barrels/day – total production1.85 million barrels/day – total exports$41.5 billion (CDN) – value of total exports205.1 billion barrels – recoverable reserves
(Source: NEB)
Non-Member Pipeline
Sedimentary
CEPA Members - Liquid PipelinesAugust
Inter Inter
Portland Montreal Pipe Portland Montreal Pipe
PembinPembin
SpectrSpectr
TransGTransG
TransCanaTransCana
Trans Trans & Maritimes& Maritimes
AlliancAllianc
BB
ATCATC
EnbridgEnbridg
Anchorage
Prudhoe Bay
Norman Wells
Whitehorse
Prince Rupert
KitimatPrince George
Fort St. John
Rainbow Lake
Zama
Fort McMurray
LloydminsterEdmonton
HardistySundre
KerrobertVancouver
HuntingdonOlympia
Portland
Seattle
Spokane
Empress Regina
Winnipeg
Cromer
Gretna
MandanClearbrook
Thunder Bay
Superior
St. Paul
Lockport Chicago
Moosonee
Timmins
SudburyNorth Bay
Ottawa Montreal
Quebec City
St. JohnHalifax
Port Hawkesbury
St. Johns
Portland
Boston
Philadelphia
Warren
OakvilleSarnia
Nanticoke
ToledoCantonLima
Catlettsburg
Memphis
Patoka
Sunray
ColoradoCity El Dorado
New Orleans
St. JamesCorpus ChristiThree Rivers Freeport
HoustonPort Arthur
Lake Charles
Longview
Big Spring
Artesia
El Paso
Salt Lake City
Ehrenberg
Long BeachLos AngelesTorrance
BakersfieldSanta Maria
Avon
San Francisco
MaritimesMaritimes& &
Yorktown
Detroit
Canadian Natural Gas Facts Canadian Natural Gas Facts –– 2007200716.8 billion cubic feet/day – total production9.0 billion cubic feet/day – total exports$24.3 billion (CDN) – value of net exports 58.1 trillion cubic feet – total reserves
(Source: NEB)
CEPA Members - Natural Gas Pipelines
Non-Member Pipeline
Sedimentary
Terasen Terasen
August
PLATTE & EXPRESS PLATTE & EXPRESS EXPANSIONEXPANSION(Kinder Morgan)(Kinder Morgan)
SPEARHEAD SPEARHEAD (Enbridge)(Enbridge)
CHINOOK/MAPLE LEAF PIPELINECHINOOK/MAPLE LEAF PIPELINE(Kinder Morgan)(Kinder Morgan)
MACKENZIE VALLEY MACKENZIE VALLEY (TransCanada)(TransCanada)
ALASKA ALASKA PIPELINEPIPELINE(Multiple Member (Multiple Member
Anchorage
Prudhoe Bay
Norman Wells
Whitehorse
Kitimat
Prince George
TaylorRainbow Lake
Zama
Fort McMurray
LloydminsterEdmonton
HardistyCalgary
Kerrobert
KamloopsVancouver
Regina
Winnipeg
Clearbrook
Superior
St. Paul
LockportChicago
Quebec City St. John
Halifax
Port Hawkesbury
St. John’s
Portland
Boston
Philadelphia
Memphis
Patoka RobinsonWood RiverEl Dorado
Cushing Tulsa
Coffeyville
Wynnewood
Tyler
Wichita Falls
Houston
LongviewEl Paso
Los Angeles
San Francisco
WAUPISOWAUPISO(Enbridge)(Enbridge)
CANAPORT CANAPORT (Connection to Maritimes & (Connection to Maritimes &
GATEWAGATEWA(Enbridge)(Enbridge)
TMXTMX(Kinder (Kinder
KEYSTONKEYSTON(TransCanad(TransCanad
ALBERTA ALBERTA (Enbridge)(Enbridge)
GROS GROS (TransCanada)(TransCanada)
SOUTHERN SOUTHERN (Enbridge)(Enbridge)
Fort Saskatchewan
Gordondale
Springville
Nederland
Corsicana
Foreman
TEXAS TEXAS (Enbridge)(Enbridge)
SOUTHERN SOUTHERN LIGHTSLIGHTS(Enbridge)(Enbridge)
Delevan
RABASKARABASKA((GazGaz Metro & Metro &
BROADWATER BROADWATER (TransCanada)(TransCanada)
ENERGIA COSTA ENERGIA COSTA (TransCanada)(TransCanada)
CEPA Members – Proposed Crude Oil and Natural Gas Pipeline Expansions
CORRIDOR CORRIDOR (Inter Pipeline)(Inter Pipeline)
FORT HILLS FORT HILLS (Enbridge)(Enbridge)
Liquid Pipeline
Gas Pipeline
Sedimentary
LNG Terminal
SUNSTONE PIPELINESUNSTONE PIPELINE(TransCanada)(TransCanada) BISON BISON
PROJECTPROJECT(TransCanada)(TransCanada)
PATHFINDEPATHFINDEPIPELINE PIPELINE
(TransCanada)(TransCanada)
NORTH NORTH EXPANSIONEXPANSION(TransCanada)(TransCanada)
PALOMAR GAS TRANSMISSION PALOMAR GAS TRANSMISSION (TransCanada)(TransCanada)
KEYSTONE KEYSTONE (TransCanada)(TransCanada)
KEYSTONE KEYSTONE (TransCanada)(TransCanada)
Sarnia PIONEER PIPELINE (2 PIONEER PIPELINE (2 (Enbridge)(Enbridge)
ALBERTAALBERTA--(TransCanada)(TransCanada)
NORTH CENTRAL NORTH CENTRAL (TransCanada)(TransCanada)
NIPISI PIPELINE NIPISI PIPELINE (Pembina)(Pembina)
August
8
Transmission Pipelines
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CEPA Priorities
Enhance economic viability– Competitive business environment and fair Return on
Equity
Ensure timely decision making by governments– Effective and efficient regulation and consultation
buttressed with good policy
Opportunity through responsibility– Safety and sustainability
Responsiveness– Adaptive, relevant and solution oriented
1010
Landowners Say….
83% – Favourable towards pipeline companies80% – Believe they are informed regarding pipeline activities on their land Safety: Landowners consider themselves more informed on public safety/emergency preparedness than in 2003 Environment: Nearly ¾ report that pipelines do a good job protecting the environment Compensation: Low on landowner list of concernsVery little change in past five years….
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Update TransCanada
12
Pipeline AssetsPipelines
Gas Storage Facilities
GTN System
Tuscarora
North Baja
Tamazunchale
Foothills/BC
Iroquois
Portland
ANR
Alberta System
Canadian MainlineTQM
Great LakesNorthern
Border
• 59,000 km (36,500 mi) of wholly owned natural gas pipeline
• Interests in an additional 7,800 km (4,800 mi) of natural gas pipeline
• 235 Bcf of regulated natural gas storage capacity; 130 Bcf unregulated gas storage
• Unparalleled connections from traditional and emerging basins to growing markets
• Average daily volume of approximately 15 Bcf
• Keystone oil pipeline in construction
1.1 million bpd
Keystone
1
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Natural Gas Pipeline Opportunities
Pipelines
Gas Storage Facilities
GTN System
Tuscarora
North Baja
Foothills/BC
Iroquois
Portland
ANR
Alberta System
Canadian Mainline
Great LakesNorthern
Border
Keystone
2
Sunstone / Palomar
Pathfinder / Bison
Mackenzie Gas Pipeline
Alaska Pipeline
Dawn Express
Montney Pipeline
Horn River Pipeline
North Central Corridor Pipeline
• Proposed pipelines designed to help US Rockies basins natural gas get to market
• Proposed pipelines designed to bring Northern natural gas to Canadian and lower 48 US markets
• Proposed pipelines designed to connect new shale gas resources to existing pipeline assets
Pipelines
Proposed Pipelines
Gas Storage FacilitiesAlaska Pipeline
Mackenzie Gas Pipeline
Horn River Pipeline
MontneyPipeline
North Central Corridor
Palomar
PathfinderBison
SunstoneDawn
Express
1414
Northern Projects:Recent Developments
Alaska Pipeline • Alaska Senate and House of
Representatives voted in favour of granting TransCanada a license to build the Alaska pipeline
• Governor Sarah Palin signed the Bill that authorizes granting the license to TransCanada on August 27
• Commence open season work
Mackenzie Gas Pipeline• Public hearing phase of the
regulatory process largely complete. Awaiting report of Joint Review Panel, likely in 2009
• Project proponents involved in discussions with Canadian federal government to financially restructure project
Pipelines
Proposed Pipelines
Gas Storage Facilities
Conventional Gas Basins
Mackenzie Gas Pipeline
AlaskaGas
PipelineProject
3
15
Update Alliance Pipeline
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Alliance System
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Capital Projects
PROPOSED ROCKIES ALLIANCE PIPELINE:
Project Scope: – 1080 mile pipeline from the Rockies (Wamsutter) to Chicago– Capital Cost ≈
$5.0 Billion– Pipe Size: 42”– Pressure 1440 MAOP– Compression: 7 compressor stations (approx 250,000 hp)– Capacity 1.3 Bcf/d
expandable to 1.7 Bcf/d– Joint project: Alliance Pipeline and Questar
Open Season ended June 16, 2008– Initial interest = 480,000 Dth/d of subscriptions– Second Open Season pending
Targeted in-service November 1, 2012
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Capital ProjectsFACILITIES CONNECTING NEW GAS SUPPLY:
• Currently constructing new compressor station near Taylor, BC (on-line Dec 2008)
• Additional interconnects being finalized in NE BC and NW Alberta
• Interconnection to Pecan Pipeline (EOG Resources) near Bantry, North Dakota (on-line mid-2009)
• Additional interconnects being finalized in SK and North Dakota
WASTE HEAT:
– October 2008: completed construction of the fourth 5 MW waste heat unit in SK. All 4 Alliance compressor stations in SK now operate waste heat units.
– Pursuing development in Alberta:Received regulatory approval for Irma, Alberta
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Update Kinder Morgan Canada
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Trans Mountain PipelineThe Only Pipeline from Alberta to the West Cost
55 year historyRecognized leader in mountain pipelining & operations in environmentally sensitive areas158km 30”/36” TMx1 (Anchor Loop) Project through Jasper & Mt. Robson Parks completed in October 2008 188,000 bpd capacity prior to 2000300,000 bpd capacity as of November 1, 2008
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Trans Mountain PipelinePlans for Continued Phased Expansion
TMx2
TMx1 (complete)
TMx3
Lowest cost to the West Cost
Greatest flexibility
TMx2: up to 330km of 30”/36” will add 80,000 bpd (total 380,000 bpd) by 2012*
TMx3: up to 750km of 30”/36” will add 320,000 bpd (total 700,000 bpd) by 2014*
Northern Leg: up to 780km of 30” will add 400,000 bpd (total 1,100,000 bpd) as early as 2014*
Additional pump stations & tanks will also be required
*Note: timing dependent on shipper support
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CO2 Infrastructure
Carbon Capture, Storage, & EOR Potential
Fort McMurray
Ft. Sask. / Edmonton
Emissions SourcesEOR / Sequestration Sites
Redwater
Swan Hills
Pembina
Innisfail / Drumheller
Brooks / Taber
Kinder Morgan is the world’s largest CO2operator (capture, transport, & injection): 1440km of pipelines; 1.3 billion cu.ft./day
Kinder Morgan is the 2nd largest oil producer in Texas: EOR increased production from 8,000 bpd to 37,000 bpd
Kinder Morgan has proposed small, commercially viable pipeline segments that will eventually form part of an Alberta network
Minimal government involvement is required
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Kinder Morgan ProjectsPrimary Contacts
– Pipeline System Major Projects (typically over $20M)Greg Hill, Director, Major Projects, KMC(403) 514-6635; [email protected]
– Non-Pipeline Terminals Projects (typically over $5M)Mark Wright, Director, Terminals Engineering, KMCT(403) 514-6498; [email protected]
– Sustaining Projects (typically under $20M)Michael Davies, Director, Engineering, KMC(403) 514-6597; [email protected]
– Contracts; Supplier QualificationGabrielle Butler, Director, Procurement, KMC(403) 514-6650; [email protected]
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Update ATCO Pipelines
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Existing Facilities
8,400 km Pipeline system
43 Compressor Stations
1350 Delivery stations
250 Receipt Stations
150 Interconnect Stations
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Capital ProjectsSouthern Extension Replacement (Three year project)
Viking to Red Deer
Replace 160 km of 219mm pipe
East Edmonton Compression (2009)
6500 HP total
4 or 5 reciprocating compressors
Small Pipeline Projects throughout Alberta annually
50km (60.3 through 406mm diameter)
generally 1 or 2 km in length or shorter
Fort Saskatchewan Upgraders
(2009 plus)
10 km 406 -
508 km pipe
29
Update Inter Pipeline Fund
30
Oil Sands Transportation
Conventional Oil Pipelines
NGL Extraction
Bulk Liquid Storage
Business Segments
31
Fort McMurray
Edmonton
Muskeg River Mine
Scotford Upgrader
Albe
rta
Sask
atch
ewan
24”, 12” pipelinesNew 42” pipeline
Corridor PipelinesCorridor Expansion Pipelines
16”, 20” pipelinesNew 20” pipeline
Corridor Pipeline System
• Corridor is a major oil sands pipeline system that services the AOSP
• AOSP is owned by Shell Canada (60%), Chevron Canada (20%), and Marathon Oil (20%)
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Corridor Pipeline Expansion Overview
$1.8 billion expansion
453 km of 42”, 43 km 20”pipe and upgraded pump stations
Blend capacity increased to 465,000 b/d
Expected to be in service in 2010
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Sole transporter of Cold Lake blended bitumen
Third-party Shell Orion connection
$225 million expansion program in progress
Cold Lake Pipeline
Edmonton
Fort McMurray
CNRL Wolf Lake
EnCana Foster Creek
Hardisty
Imperial Cold Lake
Albe
rta
Sask
atch
ewan
Shell Orion Project
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Oil Sands Pipeline Capacities(000 b/d)
Cold Lake capacities on a 100% basis
460300
560
465
705
1,400
0
500
1,000
1,500
2,000
2,500
2007 2011 Ultimate Capacity
Cold Lake Corridor
7601,025
2,105
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Conventional Oil Pipelines
Transport ~ 18% of total western Canadian conventional volumes
3,900 km of pipe connected to 160 producer owned batteries
875,000 barrels of storage
Bow River PipelineCentral Alberta PipelineMid-Saskatchewan PipelineValley PipelineNon-IPF Pipeline
Kerrobert
Hardisty
Calgary
Edmonton
Albe
rta
Sask
atch
ewan
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Conclusions
CEPA members are dedicated to ensuring a strong and viable pipeline industry in Canada
The industry continues to be quite active on a number of fronts
CEPA members continue to make significant investment in pipeline infrastructure projects
Other CEPA companies have significant active projects but could not be included in this presentation
Presentation will be posted on the CEPA web site
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For more information, please contact:
Ziad Saad,Director, Operations
Canadian Energy Pipeline AssociationSuite 1860, 205 - 5th Avenue S.W.
Bow Valley Square IICalgary, Alberta T2P 2V7
Tel: (403) 221-8777 Fax: (403) [email protected]
www.cepa.com