Edmonton, Alberta June 19, 2008 Canadian Energy Update Chuck Szmurlo Vice President, Alternative & Emerging Technology Enbridge 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

CO 2 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 –CO 2 credit costs to exceed $15/tonne –CCS for new 2012 oil sands and coal facilities EOR and Sequestration not always proximate to major emissions

CO 2 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 CO 2 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 ( tonnes/day) Phase 3: 2013, $100 - $200MM (Operators for commercial return) Expand to commercial operation

CO 2 Slurry Pipeline 5,500 Sequestration Site 98+% C0 2 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 CO 2 pipelines to EOR and sequestration a likely outcome Must integrate sequestration with EOR Saline aquifers best for large volume sequestration Useful work for CO 2 could be key to offsetting CCS costs Slurry Pipelines delivering coke, limestone and sulphur could be a viable alternative for Ft. McMurray’s CO 2 transportation