Edmonton, Alberta

1
Canadian Energy Update

• Edmonton, Alberta
• June 19, 2008

Chuck Szmurlo Vice President, Alternative
Emerging Technology Enbridge Inc.
2
Enbridge Overview
Spain
Colombia

• Enbridge Inc. is a leader in energy
  transportation and distribution in North America
  and internationally
• Owns and operates the worlds longest crude oil
  and products pipeline system
• Owns and operates Canadas largest natural gas
  distribution company
• Interest in 80,000 km of pipelines
• Delivers 2 MM B/D of liquids
• Handles 5 BCF/D of gas
• Net wind power capacity of 215 MW
• Employs 5000 people

3
CO2 Transportation Strategic Drivers

• The public increasingly sees global warming as
  the cause of calamities
• Pine beetles
• Weather phenomena
• Flooding and drought
• Industry (particularly energy) is perceived as
• The largest cause of greenhouse gas emissions
• Financially capable of a remedy as a consequence
  of high energy prices
• Legislation will likely mandate direct action
• Dissatisfaction with overseas offsets
• Potential for carbon tax
• CO2 credit costs to exceed 15/tonne
• CCS for new 2012 oil sands and coal facilities
• EOR and Sequestration not always proximate to
  major emissions

4
CO2 Sequestration Pilots

• Alberta Saline Aquifer Pilot (ASAP)
• Enbridge, EPCOR and PTAC launched November, 2007
• 29 participants
• Government funding identified

• Project Aquistore-Saskatchewan
• Petroleum Technology Research Centre

5
ASAP Project Description

• Phase 1 2008, 750,000 (Participants 20k/each,
  Federal Provincial)
• Identify 3 specific saline aquifer locations
• Design and cost ( 30) a sequestration
  demonstration including CO2 compression and
  transportation
• Prepare preliminary application for saline
  lease/permit and approval for demonstration pilot
• Phase 2 2009/12, 30 - 50MM (Technology Funds,
  Participants, Western Economic Dev., Federal
  Provincial)
• Construct operate demonstration pilot (1000 -
  3000 tonnes/day)
• Phase 3 2013, 100 - 200MM (Operators for
  commercial return)
• Expand to commercial operation

6
CO2 Slurry Pipeline

• Deliver petcoke to SGAD operations and displace
  natural gas for steam operation
• Petcoke to Ft. Saskatchewan to provide hydrogen
  for refineries and upgraders from coke gas-fires
• Deliver petcoke/sulphur and limestone to rail
  junctions to access world markets

5,500
1
2
98 C02 Source
3
Sequestration Site
7
Conclusions

• CO2 pipelines to EOR and sequestration a likely
  outcome
• Must integrate sequestration with EOR
• Saline aquifers best for large volume
  sequestration
• Useful work for CO2 could be key to offsetting
  CCS costs
• Slurry Pipelines delivering coke, limestone and
  sulphur could be a viable alternative for Ft.
  McMurrays CO2 transportation