Enbridge Pipelines (North Dakota) LLC by mlw20723

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									Enbridge Pipelines (North Dakota) LLC




      North Dakota
      System Expansion          April 2009
WHO WE ARE…
                        Enbridge Operates the
                         worlds longest liquids
                         pipeline (8,500 miles) and
                         Canada’s largest natural
                         gas distribution company
                         (1.9 million customers).
                        Has operated since 1949
                         (60 years)
                        Interest in 50,000 miles of
                         pipelines; 2 million BPD of
                         liquids and 5 BCFPD of
                         natural gas
                        Wind development capacity
                         of 270 MW
                        Employs approximately
                         6,000 people

  North Dakota
  System Expansion
WHO WE ARE…Liquids Pipelines




    North Dakota
    System Expansion
     WHO WE ARE…
     Enbridge Pipelines (North Dakota) LLC
                                                    CANADA
                 Saskatchewan                                                   Manitoba

                                     Lignite
                                                    Sherwood

 Reserve                                                                    Newberg
                Grenora
                                                            Maxbass
                                                                                                      North       Dakota                         Minnesota
                                                                        Glenburn              Pleasant   Lake
                East   Fork                                Berthold
                                            Stanley
                                                                                                                  Penn
                                Beaver   Lodge                                     Denbigh
     Trenton                                          Blaisdell   Minot

                                                                                                                                      Larimore
                        Alexander
Montana                                          Plaza/Wabek                                                            Bartlett
                                                    Fields                                                                                                      Brooks
                                                                                                                                                  Crookston

                                                                                                                                                               Clearbrook
  330-mile crude oil gathering and 620-mile interstate transportation system that gathers crude oil from
   North Dakota and Montana.
  110,000 bpd North Dakota System deliveries are made at Clearbrook, Minn., which provides
   connections with the Lakehead System and MN pipeline.
  11 Terminals, including 21 tanks, and 9 Booster Stations.
  Approximately 1400 miles of NPS 3 – 16 pipelines.
  Formerly Portal Pipelines, established in Minot since 1962.




                               North Dakota
                               System Expansion
SITUATION

1.   Increasing oil production in Eastern Montana
     and Western North Dakota.
2.   Lack of existing pipeline capacity
3.   Increased Shipper demand to transport
     capacity on the Enbridge Pipelines (North
     Dakota) LLC system.




       North Dakota
       System Expansion
SITUATION

                       1.   Increasing oil production in
                            Eastern Montana and Western
                            North Dakota.
                               Approximate 160% increase
                                in production from 2003 to
                                2008.
                               Starting with Eastern
                                Montana (Elm Coulee) in
                                2001; In 2006 Elm Coulee
                                production was roughly half
                                Montana’s production
                               April 2008 USGS report –
                                3.65 billion barrels of
                                technically recoverable oil
                               ND report – 2.1 billion
                                barrels of technically
                                recoverable oil


    North Dakota
    System Expansion
SITUATION




2.   Lack of Existing Pipeline Capacity.
      Majority of SW ND and SE MT crude shipped to Guernsey, WY.
      Suncor owns two Denver refineries upgraded to run WCS,
       which is shipped via the Express Pipeline; excess domestic
       production from a traditional market.

         North Dakota
         System Expansion
SITUATION


                                        kbpd
                                                                                                    kbpd

                                                                                           161
                                                115   Light                                                             Light


                                                                       kbpd
                                278                                                                        393

                                                       Heavy                               Light                        Heavy
                                                                                                      kbpd

                                                                                             320     37




                                                                485



                                                                   kbpd
                                                                                                      Heavy       263


                      kbpd                                                       Light
                                                         120
                30            Light

                                                                           186


                                                                                  Heavy

                               Heavy
                        263




3.    Increased Shipper demand to transport capacity on the Enbridge Pipelines
      (North Dakota) LLC system.
      Enbridge Pipelines, and Enbridge Pipelines (North Dakota) LLC serves PADD
        1, PADD 2 and PADD 3; increased alternatives / options.
      Midwest market offers the largest refinery demand and is an attractive and
        stable market.

          North Dakota
          System Expansion
PROBLEM
1. Oil Production
    When?
       How quickly would drilling come on? How aggressive
        and successful would production companies be? For
        how long?
    Where?
       Where would production need pipeline access?
        Shifting from Eastern MT, to Western ND, to Dunn and
        Mountrail County. Sheridan, MT and Divide, ND?
    How Much?
       How much future capacity be required? How
        successful and aggressive will production be? Decline
        rates, in-fill drilling, new drilling, etc.?



       North Dakota
       System Expansion
SOLUTION

 Risk Management Strategy
   Maximize Utilization of Existing Facilities

      Utilize existing pipeline infrastructure first.

   Phased Expansion(s)

      Minimize customer cost commitments to
       capital additions in rate base by
       increasing capacity at hydraulic
       breakpoints.


      North Dakota
      System Expansion
    PRE-NDSE
                                             CANADA

              Saskatchewan                                                     • Re-directed 30,000 – 35,000 bpd of Canadian Midale
                                                             Manitoba            crude since 2004 to open up space for increased
                                                                                 North Dakota and Montana Production
                             Lignite
                                          Sherwood

 Reserve                                                     Newberg
                                           Maxbass
             Grenora
                                                      Glenburn             Pleasant
                         Beaver                                              Lake
                         Lodge                 Berthold

   Trenton                                           Minot
                              Stanley
                 Alexander
                                                                 North Dakota                                          Minnesota
Montana                                Plaza/Wabek                                             Bartlett
                                          Fields
                                                                                                                   Crookston
                Low cost; Added approx.
                                                                       • DRA injection at Minot, Pleasant Lake,
                14,000 bpd space MS-CE,                                                                                        Clearbrook
                                                                        Bartlett and Crookston Stations
               plus the 30-35K bpd for ND
                 shippers (44-49K bpd)


                       North Dakota
                       System Expansion
PRE-NDSE
Drag Reducing Agent (DRA)
What Are Drag Reducers?
 Drag reducers -- also known as Drag Reducing Agents, DRAs and Flow
  Improvers -- are any material that reduces frictional pressure during fluid flow in
  the pipeline.
 Using DRAs allows increased flow using the same amount of energy or
  decreased pressure drop for the same flow rate of fluid in pipelines.
 The current class of DRAs, such as ConocoPhillips Specialty Product Inc’s
  LiquidPower™ Flow Improver consists of long-chain hydrocarbon polymers that
  act as buffers along the pipe wall to decrease the amount of energy lost in
  turbulent formation.
RESULT:
 Increased flow rate at
  same operating
  pressure!
 20+% increase in flow
  rate.

         North Dakota
         System Expansion
    NDSE1
                                             CANADA

              Saskatchewan
                                                             Manitoba

                             Lignite
                                          Sherwood

 Reserve                                                     Newberg
                                           Maxbass
             Grenora
                                                      Glenburn            Pleasant
                         Beaver                                             Lake
             East Fork   Lodge                 Berthold

   Trenton                                           Minot
                              Stanley
                 Alexander
                                                                 North Dakota                                        Minnesota
Montana                                Plaza/Wabek                                             Bartlett
                                          Fields
                                                                                                                  Crookston
                                                                       • 2005/2006 Crack Corrosion Tool Run and
    Phase I – NDSE 2005
                                                                                                                              Clearbrook
    • Station Upgrades at                                               Rehabilitation; $4 million
      Trenton/Alexander/East Fork; $4.2 million;
      Added 8,000 bpd


                       North Dakota
                       System Expansion
NDSE1
Increase Flow by Increasing Pressure
 Increase   the maximum operating pressure (MOP)
 How?
     Hydrotesting – filling pipe sections with water
      and pressuring the section to a minimum of
      125% of the desired MOP.
 Issue(s):
     Pre-1970 ERW pipe, installed in 1962, with low
      frequency joining process at the longitudinal
      seam, sometimes resulting in a lack of fusion
      at the long seam.

      North Dakota
      System Expansion
NDSE1
Increase Flow by Increasing Pressure
 Risk

    Failure of long-seam during hydrotesting
 Risk Management

    Decrease likelihood of failure, by inspecting
     and repairing lack of fusion issues prior to
     hydrotesting.
 How?

    Ultrasonic Crack Tool (smart pig).


         North Dakota
         System Expansion
    NDSE1
    What is Smart Pigging?

                                                       VS.



   Intelligent pigs, also called smart pigs, are used to
    inspect the pipeline with sensors and record the
    data for later analysis. These pigs use
    technologies such as Magnetic flux leakage
    (MFL) and ultrasonics to inspect the pipeline.
    Intelligent pigs may also use calipers to measure
    the inside geometry of the pipeline.


             North Dakota
             System Expansion
      NDSE2
                                               CANADA
                                                                              • Hydrotesting ($4 million)
                                                                                 • Beaver Lodge – Berthold (ISD – July 2006); MOP
                Saskatchewan                                                       1020
                                                               Manitoba          • Minot – Pleasant Lake (ISD – August 2006); MOP
                                                                                   980
                                                                                 • Bartlett – West Grand Forks (ISD – August 2006);
                               Lignite                                             MOP 828
                                            Sherwood
                                                                              • Added 10,000 -15,000 bpd between Beaver Lodge and
  Reserve                                                      Newberg          Clearbrook as of September 1, 2006
                                             Maxbass
               Grenora
                                                        Glenburn          Pleasant
                           Beaver                                           Lake
               East Fork   Lodge                 Berthold

     Trenton                                           Minot
                                Stanley
                   Alexander
                                                                   North Dakota                                         Minnesota
Montana                                  Plaza/Wabek                                             Bartlett
                                            Fields
Beaver Lodge Upgrade – Phase II
                                                                                                                     Crookston
• 1250 HP 4160 V motor on existing BA-MP2 pump (replacing
  the existing 800 HP 2300 V motor) w/ a 1500 HP VFD
• Extension to existing Control Building for new equipment                      •    Crack Rehabilitation Project;               Clearbrook
• SCADA upgrades                                                                •    29 Crack Digs
• ISD – April 07                                                                •    $2 million
                                                                                •    ISD – June 2006

                         North Dakota
                         System Expansion
NDSE2
Pipeline Repairs
                       Sleeving

                          29 repairs




    North Dakota
    System Expansion
NDSE2
Pipeline Repairs
                        Usingbladder in
                        slough dig site




    North Dakota
    System Expansion
NDSE2
Hydrotesting
NPS   12 Beaver Lodge-Berthold
     65,000 bbls of water from Grenora
     Two separate sections w/ Stanley in middle
     Pressure tested to MOP 1020 psig
NPS 16 Minot-Pleasant Lake
     Additional 65,000 bbls water from City of Minot
     Two separate sections from Minot-Granville B.V. and Granville-
      Pleasant Lake Station
     Pressure tested to MOP 980 psig
 NPS 16 Bartlett-W. Grand Forks B.V.
     Two separate sections from Bartlett – Niagara B.V. and Niagara B.V. –
      W. Grand Forks B.V.
     2 failures on Bartlett to Niagara B.V.
     Pressure tested to MOP 828 psig




        North Dakota
        System Expansion
NDSE2
Hydrotesting
                        Looking at the
                        rupture site at
                        site #1




    North Dakota
    System Expansion
NDSE2
Hydrotesting
                        Looking at the
                        rupture site at
                        site #1




    North Dakota
    System Expansion
NDSE2
Hydrotesting
                        Looking  at the
                         long seam
                         failure #1
                        US GW #1




    North Dakota
    System Expansion
    NDSE3
                                           CANADA
   $8 million; Adds 8,500                                                 Stanley Upgrade – Phase III
      bpd by Q1 2007                                                      • Installation of a single 2000 HP pump/motor w/ a
                                                                            2500 HP VFD
            Saskatchewan
                                                                          • New Control Building/MCC
                                                           Manitoba
                                                                          • SCADA upgrades
                                                                          • New 4160 V service feed to site for these new
                             Lignite                                        facilities (existing facilities to remain on existing
                                        Sherwood                            2300 V service feed)
 Reserve                                                   Newberg
                                                                          • ISD – June 2007
                                         Maxbass
             Grenora
                                                    Glenburn          Pleasant
                         Beaver                                         Lake
             East Fork   Lodge              Berthold

   Trenton                                         Minot
                              Stanley
                 Alexander               Plaza/Wabek           North Dakota                                             Minnesota
Montana                                                                                                   Larimore
                                            Fields                                         Bartlett
  Beaver Lodge Upgrade – Phase III
                                                                                                                     Crookston
  • 1250 HP 4160 V motor on existing BA-MP1 pump
    (replacing the existing 800 HP 2300 V motor) w/ a            Larimore Station
    1500 HP VFD                                                  •   Single 2500 HP 4160V pump/motor w/ 300HP VFD                Clearbrook
  • 150 hp deep can booster pump addition                        •   Control Building (c/w MCC)
  • Removal of the 2300 V service feed                           •   ISD – Jul 2007
  • ISD – June 2007

                       North Dakota
                       System Expansion
NDSE3


                     Larimore   - ESB




  North Dakota
  System Expansion
    NDSE4
                                             CANADA
$19 million; Adds 14,000 bpd
         by Q4 2007
            Saskatchewan
                                                              Manitoba       Mainline Booster Stations (each)
                                                                             •   Single 2500 HP 4160V pump/motor w/ a 3000 HP
                                                                                 VFD
                             Lignite
                                          Sherwood                           •   Control Building (c/w MCC)
                                                                             •   ISD’s December 2007, November 2007 & October
 Reserve                                                      Newberg            2007 respectively
                                           Maxbass
             Grenora
                                                       Glenburn          Pleasant
                         Beaver                                            Lake
             East Fork   Lodge                 Berthold
                                                                                      Penn
                                                                   Denbigh
   Trenton                                Blaisdell   Minot
                              Stanley
                 Alexander
                                                                  North Dakota                                        Minnesota
Montana                                Plaza/Wabek                                                      Larimore
                                                                                             Bartlett
                                          Fields                                                                               Brooks
 Blaisdell Station                                                                                                 Crookston
 •    Single 1500 HP 4160V pump/motor w/ a 2000 HP
      VFD                                                                                                                      Clearbrook
 •    Control Building (c/w MCC)
 •    ISD – August 2007



                       North Dakota
                       System Expansion
NDSE4


                      Penn Pump,
                      Motor and
                      Piping




  North Dakota
  System Expansion
    NDSE5
                                             CANADA
                                                                                Trenton – Beaver Lodge Line Loop
  $33 million; Adds 36,000                                                      • 52 miles of NPS 10, X-52, .219 W.T., FBE coated
            Trenton and
  bpd from Saskatchewan                                                         • MOP 1480
  28,000 bpd from Alexander                                   Manitoba          • Design rate 51,000 bpd
  by Q3 2007                                                                    • ISD – October 2007

                             Lignite
                                          Sherwood

 Reserve                                                      Newberg
                                           Maxbass
             Grenora
                                                       Glenburn             Pleasant
                         Beaver                                               Lake
             East Fork   Lodge                 Berthold
                                                                                           Penn
                                                                   Denbigh
   Trenton                                Blaisdell   Minot
                              Stanley
                 Alexander
                                                                  North Dakota                                             Minnesota
Montana                                Plaza/Wabek                                                             Larimore
                                                                                                  Bartlett
                                          Fields                                                                                 Brooks
 Alexander Station Pumping Capacity Upgrade
 • Existing pumping equipment will be left in place                     Trenton Station Pumping Capacity Upgrade Crookston
 • Single 1500 HP 4160V pump/motor w/ a 1750 HP VFD                     • Initiating for NPS 10 Pipeline of a single 1250 HP 4160V
 • Parallel booster pump addition (100 hp)                                pump/motor w/ a 2000 HP VFD                            Clearbrook
 • New MCC in existing Control Building                                 • Booster pump addition
 • 55,000 BBL Tank                                                      • New Control Building (c/w MCC)
 • ISD – August 2007                                                    • 20,000 BBL Tank
                                                                        • ISD – September 2007
                       North Dakota
                       System Expansion
NDSE5




                        Trenton
                         55,000 bbl
                         Tank

  North Dakota
  System Expansion
NDSE5
                       Lowering-in
                       pipe




Unloading
pipe from rail
cars
    North Dakota
    System Expansion
     NDSE5 Flowrates
                                              CANADA

               Saskatchewan
                                                               Manitoba

                              Lignite
                                           Sherwood

  Reserve                                                      Newberg
                                            Maxbass
              Grenora
                        BA-MS – 104,500 BPD
                                                        Glenburn          Pleasant
TE-BA – 93,000 BPD         Beaver                                           Lake
                                                                                     MS-CE – 110,000 BPD
              East Fork    Lodge                Berthold
                                                                                     Penn
                                                                    Denbigh
    Trenton                                Blaisdell   Minot
                               Stanley
                  Alexander
                                                                   North Dakota                                      Minnesota
Montana                                 Plaza/Wabek                                                    Larimore
                                                                                            Bartlett
                                           Fields                                                                             Brooks
                                                                                                                  Crookston
  AX-TE – 63,000 BPD
                                                                                                                              Clearbrook




                        North Dakota
                        System Expansion
    NDSE6
  Trenton Station
  • DRA Skid                                                                 Stanley / Blaisdell Stations
                                             CANADA                          • Single 3750 HP 4160V pump/motor w/ a 4500 HP VFD
  • ISD – 3rd QTR 2010
                                                                             • New Control Building (c/w MCC)
                                                                             • DRA skid
              Saskatchewan                                                   • ISDs – 3rd QTR 2009, 4th QTR 2009
                                                              Manitoba

                             Lignite
                                          Sherwood
                                                                                  Berthold-Minot NPS 16 Upgrade
 Reserve                                                      Newberg             • Crack and Geometry ILI
                                           Maxbass
             Grenora                                                              • Repair Program
                                                       Glenburn          Pleasant
                                                                                  • Hydrotest
                         Beaver                                            Lake • ISD -
             East Fork   Lodge                 Berthold
                                                                                        Penn
                                                                   Denbigh
   Trenton                                Blaisdell   Minot
                              Stanley
                 Alexander
                                                                  North Dakota                                           Minnesota
Montana                                Plaza/Wabek                                                         Larimore
                                                                                               Bartlett
 Alexander Station                        Fields                                                                                  Brooks
                                                              Beaver Lodge Station
 • Single 2000 HP 4160V pump/motor w/ a                                                                               Crookston
                                                              • 2-3000 HP 4160V pump/motors w/ 3500 HP VFDs
   2500 HP VFD
                                                              • New MCC in new Control Building
 • New MCC in new Control Building
                                                              • DRA Skid                                                          Clearbrook
 • DRA Skid
                                                              • 3 – tank boosters (2-existing tanks & 1-new tank)
 • ISD – 2nd QTR 2010
                                                              • 55,000 BBL Tank
                                                              • ISD – 1st QTR 2010

                       North Dakota
                       System Expansion
    NDSE6
                                                             Denbigh / Penn / Larimore / Brooks Stations
   $145 million; Adds 40,000                                 • Replace existing pump
   bpd from Beaver Lodge,                    CANADA          • Add 2000 HP 4160V pump/motor 2/ 2500 HP VFD
   66,500 bpd from Stanley                                   • New Control Building (c/w MCC)
   and 51,000 bpd from Minot                                 • DRA skid
   by Q1 2010                                                • ISDs – 1st QTR 2010, 3rd QTR 2009, 3rd QTR 2009 & 3rd
                                                               QTR 2009
   Saskatchewan                                     Manitoba                     Clearbrook Terminal
                                                                                 • 3 – NPS 10 PD meters
                             Lignite                                             • New Meter Prover
                                          Sherwood
                                                                                 • New Quality / Sample Building
 Reserve                                            Newberg                      • Remove existing piping / equipment
                                           Maxbass
             Grenora                                                             • ISD – 1st QTR 2010
                                                       Glenburn          Pleasant
                         Beaver                                            Lake
             East Fork   Lodge                 Berthold
                                                                                        Penn
                                                                   Denbigh
   Trenton                                Blaisdell   Minot
                              Stanley
                 Alexander
                                                                  North Dakota                                         Minnesota
Montana                                Plaza/Wabek                                                         Larimore
                                                                                               Bartlett
                                          Fields                                                                             Brooks
 Minot Station
                                                                  P. Lake / Bartlett / Crookston Stations          Crookston
 • 3-2000 HP 4160V pump/motors w/ 2500 HP VFD
                                                                  • 2-2000 HP 4160V pump/motors w/ 2500 HP VFD
 • New Control Building (c/w MCC)
                                                                  • New Control Building (c/w MCC)
 • DRA Skid                                                                                                                  Clearbrook
                                                                  • DRA Skid
 • Replace 2300 V Service w/ 4160
                                                                  • Replace 2300 V Service w/ 4160
 • 2 – tank boosters (Minot)
                                                                  • ISD’s – 4th QTR 2009, 3rd QTR 2009 & 3rd QTR 2009
 • ISD’s – 4th QTR 2009

                       North Dakota
                       System Expansion
     NDSE6
     Flowrates                                                                    Results
                                              CANADA                               115% increase in pipeline
                                                                                    capacity, from 75,000 bpd
               Saskatchewan                                                         to 161,000 bpd to
                                                                Manitoba            Clearbrook
                              Lignite
                                           Sherwood

  Reserve                                                       Newberg
                                            Maxbass
              Grenora
                        BA-SN – 144,000 BPD
                                                         Glenburn          Pleasant
TE-BA – 127,000 BPD Beaver                                                   Lake
                                                                                       MS-CE – 161,000 BPD
              East Fork       Lodge             Berthold
                                                                                      Penn
                                                                     Denbigh
    Trenton                                Blaisdell    Minot
                               Stanley
                  Alexander
                                                                    North Dakota                                      Minnesota
Montana                                 Plaza/Wabek                                                     Larimore
                                                                                             Bartlett
                                           Fields                                                                              Brooks
                                                                                                                   Crookston
  AX-TE – 80,400 BPD                                   BA-SN – 171,000 BPD
                                                                                                                               Clearbrook




                        North Dakota
                        System Expansion
NDSE




               FUTURE?




   North Dakota
   System Expansion
   Portal Reversal Expansion
                             “Phase   3”                            Cromer

                                                                       Enbridge Pipelines Inc
Enbridge Pipelines
Westspur “EPWI” System                                                 “EPI” Mainline
                                       Alida




             Steelman


  Canada


                  Lignite
                               Re-activate   Portal Link                    NDSE7 – 0-60,000 bpd
                                                                             NDSE8 – 60-90,000
                                                                              bpd
 “Portal    Reversal”                      Sherwood

                                                                             NDSE9 – 90-110,000
                                                                              bpd
                                    Berthhold
                                                            Minot

   Beaver                             ”
                 Stanley                      ”Berthold
   Lodge                                                                            Clearbrook


                North Dakota
                System Expansion
Portal Reversal Expansion




           QUESTIONS?



     North Dakota
     System Expansion

								
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