Edmonton, Alberta

June 19, 2008

Canadian Energy Update

Chuck SzmurloVice President, Alternative & Emerging TechnologyEnbridge Inc.

OCENSA

Bogotá

Covenas

Enbridge Inc. is a leader in energy transportation and distribution in North America and internationally:

• Owns and operates the world’s longest crude oil and products pipeline system

• Owns and operates Canada’s 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

Spain Colombia

Enbridge Overview

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

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

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

CO2 Slurry Pipeline

5,500

Sequestration Site

98+% C02 Source

1. Deliver petcoke to SGAD operations and displace natural gas for steam operation

2. Petcoke to Ft. Saskatchewan to provide hydrogen for refineries and upgraders from coke gas-fires

3. Deliver petcoke/sulphur and limestone to rail junctions to access world markets

1

2

3

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. McMurray’s CO2 transportation