Profile: Enbridge Inc (ENB.N)
Enbridge Inc. (Enbridge), incorporated on April 13, 1970, transports and distributes energy across North America. As a transporter of energy, Enbridge operates, in Canada and the United States, a crude oil and liquids transportation system. The Company is also involved in natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates a natural gas distribution company in Canada, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. The Company operates in five segments: Liquids Pipelines; Gas Distribution; Gas Pipelines, Processing and Energy Services; Sponsored Investments, and Corporate. On June 30, 2011, the Company completed the acquisition of an additional 6.8% interest in Noverco Inc. (Noverco). In October 2011, Enbridge entered the power transmission business with the acquisition of Tonbridge Power Inc. During the year ended December 31, 2011, a number of the Company’s renewable energy assets, including the Cedar Point Wind Energy, Greenwich Wind Energy and Amherstburg Solar projects, entered service. In 2011, the Company acquired a 71% interest in the development of the Cabin Gas Plant (Cabin), located 60 kilometers (37 miles) northeast of Fort Nelson, British Columbia in the Horn River Basin. In December 2012, Enbridge Income Fund Holdings Inc and Enbridge Income Fund (the Fund) acquired by indirect wholly owned subsidiaries of the Fund, which own crude oil storage and renewable power generation assets from the Company.
Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquid (NGL) and refined products pipelines and terminals in Canada and the United States, including Canadian Mainline, Regional Oil Sands System, Southern Lights Pipeline, Spearhead Pipeline, Seaway Crude Pipeline interest and other feeder pipelines. The mainline system consists of Canadian Mainline and Lakehead System (the portion of the mainline in the United States that is operated by Enbridge and owned by EEP). Through six adjacent pipelines with a combined capacity of approximately 2.5 million barrels per day, the system transports various grades of crude oil and diluted bitumen from western Canada to the midwest region of the United States and eastern Canada. Also included within the Canadian Mainline and located in eastern Canada are two crude oil pipelines and one refined products pipeline with a combined capacity of 0.4 million barrels per day. Regional Oil Sands System includes two long haul pipelines, the Athabasca Pipeline and the Waupisoo Pipeline, as well as a range of other facilities, including the MacKay River, Christina Lake, Surmont and Long Lake facilities. It also includes Hardisty Caverns Limited Partnership, which provides storage service, and two terminals: the Athabasca Terminal located north of Fort McMurray, Alberta and the Cheecham Terminal, located 95 kilometers south of Fort McMurray where the Waupisoo Pipeline initiates.
The Athabasca Pipeline is a 540-kilometer (335-mile) synthetic and heavy oil pipeline links the Athabasca oil sands in the Fort McMurray, Alberta region to a pipeline hub at Hardisty, Alberta. The Waupisoo Pipeline is a 380-kilometer (236-mile) synthetic and heavy oil pipeline and provides access to the Edmonton market for oil sands producers. The Waupisoo Pipeline initiates at Enbridge’s Cheecham Terminal and terminates at its Edmonton Mainline Terminal. The pipeline has a design capacity, dependent on crude slate, of up to 350,000 barrels per day. The 180,000 barrels per day, 20-inch diameter Southern Lights Pipeline transports diluent from Chicago, Illinois to Edmonton, Alberta. Spearhead Pipeline delivers crude oil from Chicago, Illinois to Cushing, Oklahoma. Feeder Pipelines and Other primarily includes the Company’s 85% interest in Olympic Pipeline Company (Olympic Pipeline), the refined products pipeline in the State of Washington, transporting approximately 290,000 barrels per day of gasoline, diesel, and jet fuel. It also includes the NW System, which transports crude oil from Norman Wells in the Northwest Territories to Zama, Alberta; interests in a range of liquids pipelines in the United States; contract tankage facilities, including the Hardisty Contract Terminal, which consists of 19 tanks with a working capacity of approximately 7.5 million barrels of storage, and business development costs related to Liquids Pipelines activities. The Norman Wells Pipeline is a 12-inch, 39,400 barrels per day line transporting sweet crude oil that stretches 869 kilometers (540 miles) from Norman Wells, NWT to Zama, Alberta.
Gas Distribution consists of the Company’s natural gas utility operations, which includes Enbridge Gas Distribution Inc. (EGD), which serves residential, commercial and industrial customers in central and eastern Ontario, as well as northern New York State. This business segment also includes natural gas distribution activities in Quebec and New Brunswick. EGD is a natural gas distribution company. In 2011, it served approximately two million customers in central and eastern Ontario and parts of northern New York State. EGD’s source of revenue arises from distribution of natural gas to customers. The services provided to residential, small commercial and industrial heating customers on a general service basis. TransCanada Pipelines Ltd. (TransCanada) transported approximately 63% or 268 billion cubic feet of the annual natural gas supply requirements of the Company’s customers during 2011. EGD has firm transportation service contracts with TransCanada for a portion of this requirement. Other gas distribution includes natural gas distribution utility operations in Quebec and New Brunswick, which owns the natural gas distribution franchise in the province of New Brunswick.
Gas Pipelines, Processing and Energy Services
Gas Pipelines, Processing and Energy Services consists of investments in natural gas pipelines, processing and green energy projects, the Company’s commodity marketing businesses, and international activities. Investments in natural gas pipelines include the Company’s interests in the United States portion of Alliance Pipeline (Alliance Pipeline US), Vector Pipeline and transmission and gathering pipelines in the Gulf of Mexico. Investments in natural gas processing includes the Company’s interest in Aux Sable, a natural gas fractionation and extraction business. The Alliance System (Alliance), which includes both the Canadian and United States portions of the pipeline system, consists of an approximately 3,000-kilometre (1,864-mile) natural gas transmission pipeline system and an approximately 730-kilometre (454-mile) lateral pipeline system and related infrastructure. Alliance transports liquids-rich natural gas from northeast British Columbia, northwest Alberta and the Bakken area in North Dakota to Channahon, Illinois. Alliance connects with Aux Sable, of which Enbridge owns 42.7%, a natural gas liquids (NGLs) extraction and fractionation facility in Channahon, Illinois.
The Vector Pipeline (Vector) system, which includes both the Canadian and United States portions of the pipeline system, consists of 560 kilometers (348 miles) of mainline natural gas transmission pipeline between the Chicago, Illinois hub and the storage complex at Dawn, Ontario. The Company provides operating services to and holds a 60% joint venture interest in Vector. Enbridge owns 42.7% of Aux Sable, an NGL extraction and fractionation business, which owns and operates a plant near Chicago, Illinois at the terminus of Alliance. Aux Sable also owns and operates facilities upstream of the Alliance Pipeline that deliver liquids-rich gas volumes into the pipeline for further processing at the Aux Sable plant. These facilities include the Prairie Rose Pipeline and the Palermo Conditioning Plant in the Bakken area of North Dakota and the Septimus Gas Plant and the Septimus Pipeline in the Montney area of British Columbia.
Sponsored Investments includes the Company’s 23% ownership interest in EEP, Enbridge’s 66.7% investment in the United States segment of the Alberta Clipper Project through EEP and Enbridge Energy, L.P. (EELP) and an overall 69.2% economic interest in Enbridge Income Fund (EIF), held both directly and indirectly through Enbridge Income Fund Holdings Inc. (ENF). Enbridge manages the operations of, and develops and assesses opportunities for each of these investments, including both organic growth and acquisition opportunities. EEP transports crude oil and other liquid hydrocarbons through common carrier and feeder pipelines and transports, gathers, processes and markets natural gas and NGL. EEP owns and operates crude oil and liquid petroleum transportation and storage assets and natural gas gathering, treating, processing, transportation and marketing assets in the United States. Lakehead System is the extension of the Enbridge System in the United States; the Mid-Continent crude oil system consisting of an interstate crude oil pipeline and storage facilities; a crude oil gathering system and interstate pipeline system in North Dakota; and natural gas assets located in Texas.
Corporate consists of the Company’s investment in Noverco, new business development activities, general corporate investments and financing. Noverco is a holding company that owns approximately 71% of Gaz Metro Limited Partnership (Gaz Metro), a natural gas distribution company operating in the province of Quebec with interests in subsidiary companies operating gas transmission, gas distribution and power distribution businesses in the province of Quebec and the state of Vermont.
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