Opportunity Crudes 2008: Crude Types, Transportation and Handling Systems
Ashok Anand Manager, Petroleum Quality May 1, 2008
Forward Looking Statements
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. 2
Enbridge Infrastructure Overview Inuvik
Norman Wells
Spain
Zama Fort St. John Fort McMurray Edmonton Hardisty Seattle Regina Portland
Clearbrook Montreal
Superior Ottawa Casper Salt Lake City
Sarnia
Wood River
Covenas OCENSA
Toronto Buffalo
Bogotรก
Toledo
Chicago Kansas City El Dorado Cushing
Saint John
Patoka
Liquids Transportation Gas Transmission Gas Distribution
Houston
3
WCSB Supply Production Growth vs. Pipeline Capacity (000 BPD)
(000 BPD)
3,000
2006 CAPP Forecast New Pipeline 3
2,500
3,000
2,500
New Pipeline 2 2,000
1,500
1,000
2,000
New Pipeline 1 Southern Access
1,500
Current Unutilized Export Capacity
1,000
Enbridge Market Unconstrained Case 500
500
0 2005
0 2007
2009
2011
2013
2015
4
Incremental Disposition Summary
Need to Accommodate 2.1 Million BPD incremental basin production by 2015
Export 300-500
Fort McMurray
25 Edmonton Hardisty Kerrobert Puget Sound
Great Falls Billings Salt Lake City San Francisco
50
Regina Cromer Gretna Clearbrook Superior Mandan Casper St. Paul Sinclair
Chicago
750
100 Bakersfield Los Angeles
Montreal
Cheyenne Denver Robinson McPherson Wood River Lima El Dorado Woodriver Patoka Coffeyville Ponca City Cushing Tulsa Memphis Ardmore Borger/Sunray
Toronto Buffalo Detroit Toledo Canton
250
125
Port ArthurLake Charles Houston Texas City New Orleans Freeport Corpus Christi
250-450
Catlettsburg
5
Infrastructure Requirement
Regional Pipeline Development
Mainline Expansions
New Market Access Pipelines
Terminaling 6
Alberta Oilsands Regional Pipeline Development Norman Wells
Zama
Fort McMurray
Kitimat
Vancouver
Edmonton
Hardisty Regina
Seattle Portland
Montreal
Toronto Buffalo
Casper Chicago
Salt Lake City
Cushing
Wood Patoka River
Refineries Canadian Supplied Not Canadian Supplied Enbridge Pipelines
Beaumont Houston
7
Alberta Oilsands Regional Pipeline Development PetroCanada/UTS (Forthills) Total/Deer Creek (Joslyn) PetroCanada (MacKay River)
ConocoPhillips/Total (Surmont) EnCana (Christina Lake) Waupisoo Pipeline
- Athabasca Pipeline Expansion & Cheecham Terminal - Terminal In-Service Late 2006 Waupisoo Pipeline - 30” diameter, 390 km.’s, 350 KBPD initial capacity -In service mid 2008
Synenco (Northern Lights) Imperial (Kearl) Husky (Sunrise) EnCana (Borealis) Suncor Opti-Nexen (Long Lake) Cheecham Terminal Athabasca Pipeline
Access Pipeline
En
b ri dg eM
8 ain l
ine
Mainline Expansion – Southern Access Expansion
400 kbpd Edmonton to Chicago
Under construction, inservice Q1, 2009
New 42” Pipe from Superior, Wisconsin to Chicago, 456 miles
Edmonton Hardisty
Kerrobert Regina Cromer Gretna
Clearbrook Montreal Superior Toronto Buffalo
Enbridge Mainline
Sarnia Lockport
Southern Access Expansion
Flanagan
Toledo
9
Chicago Chicap/Mustang
Spearhead
Wood River
Patoka
Mainline Expansion – Southern Access Extension
400 kbpd Chicago to Patoka
Under construction, inservice Q1, 2009
36” diameter, 178 miles
Edmonton Hardisty
Kerrobert Regina Cromer Gretna
Clearbrook Montreal Superior Toronto Buffalo
Enbridge Mainline
Sarnia Lockport
Southern Access Extension Flanagan
Toledo
10
Chicago Chicap/Mustang
Spearhead
Wood River
Patoka
Mainline Expansions - Alberta Clipper New
36” diameter line, Hardisty to Superior, 1,000 miles
400
kbpd additional capacity into Chicago
Edmonton
in-service
Hardisty
late 2010
Kerrobert Regina Cromer Gretna
Clearbrook Montreal Superior Toronto Buffalo
Enbridge Mainline Alberta Clipper
Sarnia Lockport Flanagan
Toledo
11
Chicago Chicap/Mustang
Spearhead
Wood River
Patoka
Mainline Expansion Southern Lights Diluent Supply 180 kbpd diluent capacity Contract pipeline In service 2010 Fully supported by industry Under Construction
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New Market Access 1. Spearhead Expansion I : 65 kbpd, US $ 55 MM, 2009 II : 100 kbpd, US $215 MM, 2011 2. U.S. Gulf Coast
: 200 kbpd, US $200 MM, 2009
3. Eastern PADD II
: 250 kbpd, US $280 MM, 2010
4. Gateway Crude Pipeline : 400 kbpd, US $4.0 B, 2012 Gateway
5. PADD I Pipeline
Fort McMurray
4
: 300 kbpd, US $1.4 B, 2010 - 12
Edmonton
300 kppd Puget Sound Great Falls Billings
Hardisty Kerrobert Regina Cromer Gretna Clearbrook Superior Mandan
Montreal
100 kppd Casper Sinclair
Salt Lake City San Francisco
St. Paul
Cheyenne Denver
Bakersfield Los Angeles
Artesia
Toronto Detroit Buffalo Toledo Lima Canton Robinson
Chicago Wood River McPherson El Dorado Coffeyville Ponca City Cushing Borger/Sunray
El Paso Big Spring Houston Texas City Freeport Corpus Christi
3
Woodriver
Patoka
1
Catlettsburg
Tulsa Ardmore
5
2
Memphis
Port Arthur Lake Charles New Orleans
13
Terminaling Footprint & Hotspots
Norman Wells
Upstream
Downstream
Athabasca System
Stonefell Zama Edmonton Fort McMurray
Hardisty
Existing (mil. bbls)
4.0
12.5
Under Development
16.0
14.3
Edmonton Hardisty Calgary
Kerrobert Regina Cromer Gretna Clearbrook Superior Casper
Flanagan
Montreal Sarnia
Toronto Chicago
Salt Lake City
Key
Lockport
Toledo Chicago
El Dorado Wood River
Existing Storage Patoka
Active Development
Cushing Houston Gulf Coast
14
New Market Pipeline Delivery Network - 2012 Fort McMurray Edmonton Hardisty Kerrobert Puget Sound
Regina Cromer Gretna Great Falls
Clearbrook
Billings
Casper Sinclair
Salt Lake City San Francisco
St. Paul
Toronto
Cheyenne
Los Angeles
Artesia El Paso
Buffalo Detroit Toledo Lima Canton
Chicago
Denver Bakersfield
Montreal
Superior
Mandan
McPherson El Dorado Coffeyville Ponca City Cushing
Borger/Sunray
Big Spring Houston Texas City Freeport Corpus Christi
Robinson Woodriver
Patoka Catlettsburg
Tulsa Memphis Ardmore
Refineries with increased Canadian Supply
Port Arthur Lake Charles New Orleans
Existing Transmission Pipelines Planned Transmission Pipelines
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Enbridge Commodity Types (Enbridge.com & crudemonitor.ca) API Heavy 19-21 Heavy Hi Tan 19-21 Heavy Lo Resid 20 Medium 30-35 Sour 30-35 Sweet 40 Lt Sweet Synthetic 30-35 Condensate 60 Olefinic NGL Refined Products
%S 2.6-4.5 3.0-4.5 3.0 2.5 1.1-1.8 <0.5 0.1-0.25 0.2
MCR 8.5-11.3 7.5-10 <1.0 6.0 4.0-6.0 2.0 <0.5 -
TAN 0.5-1.05 1.4-3.5 3.5 0.2 0.3 0.2 0.1 -
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Quality Management of Commodities in Enbridge 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 17
Core Liquid Pipelines Number & Type
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The Quality Matrix â&#x20AC;&#x201C; Number & Type
CRUDE TYPE MATRIX - THE QUALITY PROCESS Heavy -TAN Heavy 1 2 Heavy -TAN 2 1 Heavy 7 6 Medium 7 6 Sour 7 6 Sweet 7 6 Synthetic 7 6 Condensate
Medium 3 3 1 2 5 5 5
Sour 4 4 2 1 4 4 4
Sweet 5 5 3 3 1 3 3
Synthetic 6 6 4 4 2 1 2
Condensate 7 7 5 5 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 first 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 size Turbulent Flow
Laminar Flow
Notice the increased size of the mixing area from the Turbulent to Laminar flow
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In 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 21
Special Procedures
â&#x20AC;˘ 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. â&#x20AC;˘ 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. 22
ITS Quality Metrics • Reward/penalty based on meeting or exceeding targets set over 5 years (2005-2009). Targets negotiated based on baseline data on main lines only – to Sarnia & Chicago • Targets set on formula which includes – Absolute change + constant x std dev at delivery
• Quality metrics parameters – receipt to delivery – Heavy: sulphur, MCR, TAN – Light Synthetic: sulphur, density – Refined products: diesel flash, uLSD sulphur pick-up
• Light Targets tighten by 50% and Heavy targets tighten by 30% • Performance has been excellent – 23 out of 28 targets in 2007 were in bonus situation indicating the gains in quality of crude being delivered • Connecting pipelines benefiting 23
Summary • Increased crude production of 2.1M barrels/day expected by 2015 • Growth expected in new and existing crude types – some challenging • Enbridge infrastructure being expanded to connect increased supply sources to existing & new markets • ITS Quality metrics benefiting connecting pipelines • Quality metrics principles/practices extended to all expanded infrastructure 24