Meeting the needs of rising global energy demands

An investor bulletin from 2015 Enbridge Day (Part 1)

It’s a growth model that’s flexible, scalable – and, above all else, well-connected.

The recent 17th annual Enbridge Day Investment Community Conference, held Oct. 7 in Toronto and Oct. 8 in New York, gave current and potential Enbridge investors insight into our business fundamentals, our financial outlook, and our large and diversified set of future growth opportunities.

And for our crude oil pipeline network, that means supporting an expected rising demand for energy delivery, in spite of the current economic uncertainty, said Guy Jarvis, president of Enbridge’s Liquids Pipelines division.

“We are delivering,” Mr. Jarvis told investors and analysts. “We are delivering the infrastructure closest to production. We are delivering increased mainline volumes and market access. And we are delivering on an option to meet continuing industry capacity needs.”

In addition to a strategic company overview by president and CEO Al Monaco, who discussed our $38-billion, five-year capital growth program, 2015 Enbridge Day also included updates by various Enbridge leaders on key aspects of our business – including a Liquids Pipelines presentation by Mr. Jarvis.

Enbridge operates the world’s longest and most complex crude oil and liquids pipeline network. Mr. Jarvis noted that by the end of 2015, our mainline system is expected to access about 3.5 million barrels per day (bpd) of demand – 1.9 million barrels directly connected to refineries, and another 1.6 million barrels per day to refining centers via downstream connections.

The Canadian Association of Petroleum Producers (CAPP) is currently forecasting a need for between 450,000 and 950,000 bpd of new capacity by 2020 and beyond.

As part of Enbridge’s five-year growth platform, Mr. Jarvis pointed out that Enbridge has identified a series of options to meet as much as 800,000 bpd of that need with “scalable, highly executable and low-cost projects,” post-2017, along our mainline system.

Our five-year plan also explores further expansion and market access, post-2017. This includes:

  • Potential expansion of our Flanagan South, Seaway Twin, and Southern Access Extension lines; and
  • Assessing demand for an Eastern Gulf Coast Access initiative.

We’ve also started work on a regional business plan for the U.S. Gulf Coast refining corridor near Houston. Mr. Jarvis pointed to the region’s prominence on both a North American and global scale, with more than 8 million bpd of refining capacity – as well as its current and growing import/export capability.

Enbridge’s regional business plan for the U.S. Gulf Coast may include:

  • An expanded terminal presence;
  • Involvement in regional pipeline connectivity; and
  • Access to import/export dock capability.

The Liquids Pipelines presentation, as part of 2015 Enbridge Day, is available on the website.