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Enbr idge Day 2014
Power, International & Energy Services
Vern Yu Senior Vice President Corporate Development
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Key Messages
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• Significant business and contributor to earnings today
• Well positioned to become a larger earnings contributor in the future
Enbr idge Day 2014
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500
1,000
1,500
2010 2011 2012 2013 2014
Net Generation Capacity (MW)
Power Generation & Transmission Footprint
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Source: U.S. Energy Information Administration
0
50
100
150
200
250
2014-20 2021-25 2026-30
(GW
)
2014-2030 U.S. Capacity Additions
Natural gas Other Renewables
0
20
40
60
80
100
2014-20 2021-25 2026-30
(bill
ion
, 20
12
US$
)
2014-2030 U.S. Transmission Investment
Source: International Energy Agency
Market Fundamentals Support Growth
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0
1000
2000
3000
2014 2018
Power Generation Capacity Growth (MW)
Strategic Priorities Focus Areas
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Recent Additions and Near-Term Opportunities
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International Fundamentals
Source: US Energy Information Administration
Asia Energy Demand Growth North America Energy Demand Growth
0
50
100
150
200
250
300
350
400
450
2015 2020 2025 2030 2035 2040
Qu
adri
llio
n B
tu
OECD Asia Other Non-OECD Asia India China
0
20
40
60
80
100
120
140
2015 2020 2025 2030 2035 2040
Qu
adri
llio
n B
tu
United States Canada
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International Investment Criteria
Superior risk-adjusted project returns
Long-term, take-or-pay commitments
Strong market fundamentals
Hard/hedgeable currency
Creditworthy customers
Growth opportunities
Enbridge Focus Countries
Colombia Australia
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0
200
400
600
800
1000
1200
1400
1600
2013 2014 2015 2016 2017 2018 2019 2020
Mb
bl/
d
International Focus
Source: Business Monitor International
Colombia Crude Oil Production Forecast
0
2
4
6
8
10
12
14
16
2013 2014 2015 2016 2017 2018 2019 2020
BC
F/d
Australia Natural Gas Production Forecast
Compelling long-term supply drivers
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Oleoducto al Pacífico (OAP)
Proposed OAP Lateral
Proposed OAP Mainline
Proposed OAP Terminal
Existing Pipelines
• 759-km export mainline, lateral line, diluent import pipeline, and terminal facilities
• Designed to ship heavy crude oil production to the west coast for export to growing Asia market
• Phase I completed
- Conceptual engineering
- Pipeline corridor approved
• Phase II development underway
- Environmental Impact Assessment
- Environmental license application
- Commercial structuring
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• Services to producers and refiners
•Access to physical assets
•Use market knowledge to generate earnings opportunities
Energy Services Focus and Objectives
Enbridge Pipelines
Enbridge Storage
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Light: $84 Sour: $78
*Brent price is a landed price on US East Coast/ US Gulf Coast. Assumed tanker freight cost of US$2.00 per bbl.
Energy Services Fundamentals
Light Crude (USD per barrel)
Heavy Crude (USD per barrel)
Natural Gas (USD per MMBtu)
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Based on spot prices as at September 22, 2014
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A Buy DOM @ Midland, TX ($94)
Tariffs and TVM ($2)
B Sell DOM @ Longview, TX +$103
Refinery Supply Margin $7
Crude Blending Combine Cdn heavy with US light crude Simultaneously buy supply and sell to refiners
A Sunoco Logistix Pipeline
B
Mid-Valley Pipeline
Longview
Refinery at Toledo
Producer Services, Transportation and Storage
Integrate multiple strategies to reach broad geographical market areas, maximize product flows and provide optimal pricing for customers
PADD II
Eastern Canada/ US East Coast
USGC
Western Canada
Energy Services Business Strategies
Buy AB Heavy to Cushing 60% ($81)
Buy US Light at Cushing 40% ($96)
Blended cost ($87)
Sell Medium +$90
Margin $3
Crude Refinery Supply
Midland Tank
USD per barrel
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Well positioned for modest near term growth, strong base for increased long term growth and diversification
Near Term Growth
Longer Term Potential Growth / Diversification
Power International - Energy Services
Summary
Enbr idge Day 2014 14
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Enbr idge Day 2014
Q&A
Vern Yu Senior Vice President Corporate Development