Enbridge is a North American leader in delivering energy. As a transporter of energy, we operate, in Canada and the U.S., the world’s longest crude oil and liquids transportation system. We also have a significant and growing involvement in natural gas gathering, transmission and midstream businesses. As a distributor of energy, we own and operate Canada’s largest natural gas distribution company and provide distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, we have interests in nearly 2,800 MW (2,000 net) of renewable and alternative energy generating capacity, which is operating, secured or under construction, and we continue to expand our interests in wind, solar and geothermal power. We employ almost 11,000 people, primarily in Canada and the U.S.
Our vision is to be the leading energy delivery company in North America. In pursuing this vision, we play a critical role in enabling the economic well-being and quality of life of North Americans, who depend on access to plentiful energy. We transport, distribute and generate energy, and our primary purpose is to deliver the energy North Americans need in the safest, most reliable and most efficient way possible.
Among our peers, we strive to be the leader, which means not only leadership in value creation for shareholders but also leadership with respect to worker and public safety and environmental protection associated with our energy delivery infrastructure, as well as in customer service, community investment and employee satisfaction. Driven by this vision, we deliver value for shareholders from a proven and unique value proposition, which combines visible growth, a reliable business model and a dependable and growing income stream.
Our initiatives center around the following eight areas of strategic emphasis:
- commitment to safety and operational reliability,
- focus on project management,
- preservation of financing strength and flexibility,
- strengthening of core businesses,
- development of new platforms for growth and diversification,
- upholding of Enbridge core values,
- maintenance of our social license to operate, and
- attraction, retention and development of highly capable people.
We review strategies at least annually under the direction of our Board of Directors, and provide guidance for our operations and future growth. While each area plays an important role in the execution of our broader long-range plan, the most significant developments in our business over the past three years have been in the areas of operations management and the pursuit of growth projects, both in our core businesses as well as through new ventures.
We carry out our activities through five business segments:
- Liquids Pipelines,
- Gas Distribution,
- Gas Pipelines, Processing & Energy Services,
- Sponsored Investments, and
Our Liquids Pipelines business segment (LP) comprises the ownership and operation of crude oil and other liquid hydrocarbons pipelines and terminals in Canada and the U.S. Until August 31, 2015, LP consisted of common carrier and contract crude oil, NGL and refined products pipelines and terminals in Canada and the U.S., including the Canadian Mainline, Regional Oil Sands System, Seaway Crude Pipeline System, Flanagan South Pipeline, Southern Lights Pipeline, Spearhead Pipeline and other feeder pipelines. Effective September 1, 2015, pursuant to our 2015 transaction1, we transferred to the Fund Group (which includes the Enbridge Income Fund, Enbridge Commercial Trust, Enbridge Income Partners LP, and subsidiaries of Enbridge Income Partners LP), the Canadian Mainline, Regional Oil Sands System, the Canadian portion of the Southern Lights Pipeline and certain residual rights and/or obligations relating to certain terminal and storage assets. We now report the performance of these transferred assets under our Sponsored Investments business segment from the date of transfer.
As at December 31, 2015, some of the assets in LP include:
- a 50 percent interest in the Seaway Crude Pipeline System, which transports various grades of crude oil from Cushing, Oklahoma to the U.S. Gulf Coast,
- a 100 percent interest in the Flanagan South Pipeline project, which transports crude oil from our terminal at Flanagan, Illinois, to Cushing, Oklahoma,
- the Spearhead Pipeline, a long-haul pipeline that transports various grades of crude oil from Flanagan, Illinois, to Cushing, Oklahoma,
- the Southern Access Extension, a pipeline that transports crude oil from Flanagan, Illinois, to Patoka, Illinois, and,
- other feeder pipelines, which primarily include: our 85 percent interest in Olympic Pipe Line Company, the Normal Wells System, our interests in a number of liquids pipelines in the U.S. (including the Toledo Pipeline, which connects with the EEP Mainline at Stockbridge, Michigan), and our 75 percent joint venture interest in Eddystone Rail.
Our Gas Distribution business segment (GD) consists of our natural gas utility operations, the core of which is Enbridge Gas Distribution (EGD), which serves residential, commercial and industrial customers, primarily in central and eastern Ontario, as well as in northern New York State. GD also includes natural gas distribution activities in Quebec and New Brunswick, primarily through Enbridge Gas New Brunswick (EGNB).
Enbridge Gas Distribution
EGD is Canada’s largest natural gas distribution company and has been in operation for more than 160 years. It serves over two million customers in central and eastern Ontario and parts of northern New York State.
The Ontario Energy Board and the New York State Public Service Commission regulate EGD’s utility operations. EGD is a reporting issuer in each of Canada’s provinces.
Other Gas Distribution and Storage
Other gas distribution operations include natural gas distribution utility operations in Quebec and New Brunswick, the most significant being EGNB, which we wholly own and operate. EGNB owns the natural gas distribution franchise in New Brunswick and has approximately 12,000 customers. New Brunswick Energy and Utilities Board regulates it.
Gas Pipelines, Processing & Energy Services
Our Gas Pipelines, Processing & Energy Services business segment (GPP&ES) consists of our investments in natural gas pipelines, gathering and processing facilities and energy services businesses, along with renewable energy and transmission facilities. Effective September 1, 2015, pursuant to the 2015 transaction1, we transferred to the Fund Group (which includes the Enbridge Income Fund, Enbridge Commercial Trust, Enbridge Income Partners LP, and subsidiaries of Enbridge Income Partners LP) certain Canadian renewable energy assets that are reported under the Sponsored Investments segment from the date of transfer.
Investments in natural gas pipelines include our interests in the Vector Pipeline and transmission and gathering pipelines in the Gulf of Mexico. Investments in natural gas processing include our interest in Aux Sable, a natural gas extraction and fractionation business located near the terminus of the Alliance Pipeline and Canadian Midstream assets located in northeast B.C. and northwest Alberta. The energy services businesses undertake physical commodity marketing activity and logistical services, oversee refinery supply services and manage our volume commitments on the Alliance Pipeline, Vector Pipeline and other pipeline systems.
Effective September 1, 2015, pursuant to the 2015 Transaction1, our Sponsored Investments business segment includes our 89.2 percent economic interest in the Fund Group (which includes the Enbridge Income Fund, Enbridge Commercial Trust, Enbridge Income Partners LP, and subsidiaries of Enbridge Income Partners LP). Also included within Sponsored Investments is our 35.7 percent economic interest in Enbridge Energy Partners (in addition to a US$1.2 billion investment in EEP preferred units) and our interests in both the Eastern Access and Lakehead System Mainline Expansion projects held through Enbridge Energy, Limited Partnership. We, through our subsidiaries, manage the day-to-day operations of, and develop and assess opportunities for, each of these investments, including both organic growth and acquisition opportunities.
The Fund Group’s primary operations include three core businesses: Liquids Pipelines, Gas Pipelines and Green Power. Effective September 1, 2015, pursuant to the 2015 Transaction1, we transferred to the Fund Group certain Canadian renewable energy assets, the Canadian Liquids Pipelines business, which comprises the Canadian Mainline, Regional Oil Sands System, the Canadian portion of the Southern Lights Pipeline and certain residual rights and/or obligations relating to certain terminal and storage assets. For more information, please see Enbridge’s 2015 MD&A.
Liquids Pipelines - In addition to the liquids pipelines assets transferred as part of the 2015 Transaction1, the Liquids Pipelines business also operates a crude oil gathering system and trunkline pipeline in southern Saskatchewan and southwestern Manitoba, connecting to the Mainline System at Cromer, Manitoba. In addition, Liquids Pipelines includes the Canadian portion of the Bakken Expansion Pipeline, an interest acquired in Southern Lights Pipeline in November 2014, as well as the Hardisty Contract Terminals and Hardisty Storage Caverns located near Hardisty, Alberta.
The Mainline System comprises the Canadian Mainline and the Lakehead System. The Canadian Mainline is a common carrier pipeline system that transports various grades of oil and other liquid hydrocarbons within western Canada and from western Canada to the Canada/U.S. border near Gretna, Manitoba, and Neche, North Dakota, and from the U.S./Canada border near Port Huron, Michigan, and Sarnia, Ontario, to eastern Canada and the northeastern U.S. The Canadian Mainline includes six adjacent pipelines, with combined design operating capacity of approximately 2.85 million bpd that connect with the Lakehead System at the Canada/U.S. border (and form the Mainline System), as well as four crude oil pipelines and one refined products pipeline that deliver into eastern Canada and the U.S. It also includes certain related pipelines and infrastructure, including decommissioned and deactivated pipelines.
Gas Pipelines - The Alliance Pipeline, which includes both the Canadian and the U.S. portion of the Alliance pipeline, consists of approximately 3,000 kilometers (1,864 miles) of integrated, high-pressure natural gas transmission pipeline and approximately 860 kilometers (534 miles) of lateral pipelines and related infrastructure. The Alliance Pipeline transports liquids-rich natural gas from northeast B.C., northwest Alberta and the Bakken area in North Dakota to the Alliance Chicago gas exchange hub downstream of the Aux Sable NGL extraction and fractionation plant at Channahon, Illinois. The Canadian and U.S. portions of the Alliance Pipeline have annual firm service shipping capacity to deliver 1.455 billion cubic feet per day and 1.325 billion cubic feet per day, respectively. The Fund Group owns 50 percent of the Canadian portion of the Alliance Pipeline and 50 percent of the U.S. portion of the Alliance Pipeline. Natural gas transported on the Alliance Pipeline downstream of the Aux Sable plant can be delivered to two local natural gas distribution systems in the Chicago area and five interstate natural gas pipelines, providing shippers with access to Midwest and eastern natural gas markets.
Green Power - Within Green Power, the Fund Group has interests of over 500 megawatts (MW) of net renewable and alternative power generation capability prior to the completion of the 2015 Transation1. Following the transfer of additional renewable energy assets from Enbridge as part of the 2015 Transaction, Green Power’s net renewable and alternative power generation capability increased to approximately 1,050 MW at year end.
U.S. Sponsored Investments
Enbridge Energy Partners (EEP) owns and operates crude oil and liquid petroleum transportation and storage assets, natural gas and natural gas liquids gathering, treating, processing and transportation assets and marketing assets in the U.S. EEP holds its natural gas and natural gas liquids businesses directly and indirectly through its partially owned subsidiary, Midcoast Energy Partners L.P (MEP). Significant assets include the Lakehead System, which is the extension of the Canadian Mainline in the U.S., 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 primarily in Texas. Subsidiaries of Enbridge provide services to EEP in connection with the operation of its liquids assets, including the Lakehead System.
Enbridge Energy, Limited Partnership (EELP) holds assets that Enbridge and EEP jointly fund. Included within EELP is the U.S. segment of the Alberta Clipper Pipeline. The U.S. portion of the Alberta Clipper Pipeline connects with the Canadian portion of the Alberta Clipper Pipeline at the border near Neche, North Dakota, and provides transportation service to Superior, Wisconsin. We funded 66.7 percent of the project’s equity requirements through EELP, while 66.7 percent of the debt funding was made through EEP. On January 2, 2015, we transferred our 66.7 percent interest in the U.S. segment of Alberta Clipper to EEP
Our Corporate business segment consists of a number of functions that support Enbridge as a whole, including Finance, Human Resources, Information Technology, Legal, Public and Government Affairs, and other back-office functions. The majority of the costs for these functions are fully allocated to our operating business segments, although some of these costs, particularly financing costs, are retained within the Corporate business segment.
Our Corporate business segment also consists of our 38.9 percent investment in Noverco Inc. common shares, new business development activities, general corporate investments and financing costs not allocated to the business segments. Other corporate costs include dividends on Preference Shares as such dividends are a deduction in determining earnings attributable to holders of Common Shares.
1 “2015 Transaction” refers to the transaction during which Enbridge Income Partners LP, which is a limited partnership established under the laws of Alberta, acquired 100 percent interests from Enbridge and IPL System Inc., which is a corporation incorporated under the laws of Alberta and a wholly owned subsidiary of Enbridge, in the Canadian segment of the Mainline System, the Regional Oil Sands System and interests in four wind farms situated in Alberta and Quebec together with other assets for aggregate consideration of $30.4 billion plus incentive distribution and performance rights, less working capital adjustments. The transaction was completed on September 1, 2015. For more information, please see Enbridge’s 2015 Annual Information Form.
For more information, please see Enbridge Inc.’s 2015 Annual Information Form.
The map below shows our operations, including the headquarters for Enbridge, Energy Energy Partners and Enbridge Gas Distribution.