economic performance
Expanding our Continental Reach
Enbridge is uniquely positioned for growth in North America, and is focused on moving energy
from areas where we foresee increasing supply to areas of growing demand. In 2005, we made
continued progress towards our goal of broadening access to continental markets for customers
of our energy delivery systems.
 Top of pageExpand existing core asset platforms
The Spearhead Pipeline was reversed and first crude oil shipments reached the Cushing terminal
in March 2006. Enbridge now directly ships western Canadian crude oil all the way from Alberta
to Oklahoma.
In December 2005, we announced that we were proceeding with construction of the Southern
Access expansion, to add an additional 400,000 barrels per day of capacity between Hardisty, Alberta,
and the Chicago, Illinois area by 2009. In July 2006 we also announced that we were proceeding
with a 400,000-barrels-per-day Southern Access extension to Patoka, Illinois.
Top of pageSupporting Market Access to the Oil Sands
Our liquids petroleum system is strategically positioned between Alberta’s oil sands and the
United States Midwest, eastern Canadian markets and growing Asian markets. As oil sands producers
develop new production facilities in northern Alberta, we are developing pipeline plans to connect
the next wave of oil sands projects. In 2005, we finalized shipper agreements on the Waupisoo
Pipeline , a connecting pipeline that will bring oil sands shipments from Fort McMurray, Alberta
to the Edmonton hub. We also finalized agreements to construct facilities to ship production from
two more oil sands projects – the Long Lake and Surmont projects.
During the year we also made significant strides on our Gateway Project to build a petroleum
export pipeline from Bruderheim, Alberta (near Edmonton) to Kitimat, British Columbia and a
condensate import pipeline from Kitimat to Edmonton to be in service by 2011. We began
environmental fieldwork, continued our consultation with Aboriginal groups and stakeholders,
and held 18 informational open houses in communities along the right-of-way. Two Open Seasons
produced strong interest from potential customers for both pipelines, and we continue to work to get
shipping commitments, are continuing our community consultations, and are completing engineering
and environmental planning to be in position to file an application in late 2006 for construction of
the pipeline.
All of these projects are needed to accommodate growing oil sands production over the next five
to 10 years. In February 2006, we also announced plans for the Enbridge Alberta Clipper Pipeline,
a proposed 400,000 barrels per day pipeline from Hardisty, Alberta to Superior, Wisconsin.
And in 2006 we announced plans for a 180,000-barrels-per-day diluent pipeline called Southern
Lights, from Chicago to Edmonton.
We are also developing new infrastructure in the oil sands region of northern Alberta. We
announced plans in 2005 to build a pipeline and terminal for a new Fort Saskatchewan upgrader,
and invested in Value Creation Inc. to participate in the development of upgrading technologies.
At the end of 2005, we announced the acquisition of a majority interest in Olympic Pipe Line
giving Enbridge an equity position in a pipeline in the northwest United States.
Top of pageBenefiting customers through incentive tolling
In 2005, we finalized a new incentive tolling settlement with shippers on the Enbridge System.
Incentive tolling allows customers to benefit from our cost saving initiatives. Since the inception
of incentive tolling in 1995, Enbridge and our customers have shared a total of $119 million of
after-tax savings.
Developing renewable energy resources
Enbridge and Enbridge Income Fund are currently involved in four wind power projects, which
will be capable of generating more than 270 megawatts of power. These include a 200-megawatt
wind power project, announced in 2005, on the shores of Lake Huron in Ontario. (For more
details on our wind power projects, see page the Sustainable Energy Commitment page.)
Expanding Ontario gas distribution system
Our Enbridge Gas Distribution infrastructure in Ontario serves Canada’s fastest growing
metropolitan area. In 2005, our natural gas franchise continued to grow, with Enbridge Gas
Distribution adding more than 50,000 new customers.
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