Enbridge, formerly known as Interprovincial Pipe Line Company, was first established on 30 April1949 when it received a charter from the Canadian Government to build a pipeline to carry Leduc crude oil to refineries in Regina, Saskatchewan.

Over six decades later, the company has become the leading pipeline operator in both Canada’s oilsands region – the second largest resource play in the world with an estimated 170 Bbbl of proven recoverable reserves – and the rapidly growing Bakken formation in Canada and the neighbouring USA.

Pipelines for every product

Enbridge operates approximately 46,670 km of pipeline systems, including crude oil, liquids and natural gas transmission in both Canada and the US. The company exports 65 per cent of Western Canadian oil, which represents 13 per cent of the US’ daily crude oil imports. The company is Canada’s largest transporter of crude oil, with approximately 24,600 km of pipeline delivering on average more than 2.2 MMbbl/d of crude oil and liquids, including in excess of 600,000 bbl/d of crude to markets across Canada.

“If you fill up your automobile anywhere from Alberta to Ontario, there’s a high likelihood that the gasoline or diesel you’re putting in your tank has been refined from crude oil shipped through Enbridge’s pipelines,” says Stephen J. Wuori, President, Liquids Pipelines, Enbridge Inc. “The same is true in 18 states across the US, particularly in the American Midwest. Fuels refined from the crude oil Enbridge delivers to market help to power industry, agriculture, infrastructure, and both ground and air transportation.”

In addition to crude oil, Enbridge transports natural gas. The company’s Western Canada operations include interest in the 2,986 km, 36 and 42 inch diameter Alliance System and the 560 km, 42 inch diameter Vector Pipeline.

Through its affiliate Enbridge Energy Partners, Enbridge operates approximately 22,370 km of natural gas gathering and transmission and natural gas liquids pipelines. Enbridge also operates Enbridge Offshore Pipelines, which owns approximately 2,494 km of underwater pipe and offshore facilities, and transports approximately 3 Bcf/d of natural gas, about half of the offshore deepwater natural gas production in the Gulf of Mexico.

Taken together, the company’s natural gas systems move more than 7 Bcf/d of natural gas. In addition, Enbridge owns Canada’s largest natural gas distribution company, Enbridge Gas Distribution, distributing natural gas to approximately 1.9 million customers in Eastern Canada and parts of the northeastern US.

Continued expansion

Enbridge’s pipeline systems are located in strategically important geographical areas, giving the company an unparalleled ability to expand and extend its energy delivery networks throughout North America.

One of the major changes within Enbridge’s operations over the past ten years has been the continued expansion of its pipeline networks. These have included:

• The construction of numerous pipelines to Alberta’s oilsands;
• The addition of pipelines and terminals at energy hubs like Hardisty, Alberta, and Cushing, Oklahoma;
• The expansion of gathering systems in Saskatchewan and North Dakota; and,
• The construction of major intercontinental oil pipelines across Canada and the US.

Currently, Enbridge has secured more than $US2.5 billion of expansions and additions to its Regional Oil Sands System and are expected to go into service between 2011 and 2014. These include the 1 MMbbl expansion of Enbridge’s mainline terminal in Edmonton, Alberta; expansion of the company’s 380 km, 30 inch diameter Waupisoo and 540 km, 30 inch diameter Athabasca pipelines; and the construction of three new pipelines – the 95 km, 30 inch diameter Wood Buffalo pipeline, 112 km, 24 inch diameter Norealis pipeline and 140km, 36 inch diameter Woodland pipeline. Enbridge also adds that it has a significant portfolio of projects to support oilsands growth under development.

Enbridge Senior Vice President – Operations Leon Zupan says “Building on recent expansions of our North Dakota and Saskatchewan systems, we are working with Bakken producers on an innovative suite of projects that will further expand their access to preferred markets.

“We will also be expanding the capacity of our Louisiana condensate processing facility to accommodate growing production from the ultra deepwater offshore in the Gulf of Mexico.”

Developing staff for safety

Enbridge says that it improves pipelines operation safety through training, simulations, standards and providing people with the opportunity to work alongside and learn from others with more experience.

“Safety in any pipeline operation needs to address people, processes and technology,” says Mr Zupan. “Our people require the knowledge and skills to make the right decisions every hour of the day.”

To support this, Enbridge offers a number of training initiatives to its staff, such as the virtual training centre, ‘Enbridge University West’. Developed by Enbridge’s Liquids Pipelines Division, the Centre offers Energy Studies, Business Excellence, Leadership and Personal Development courses, among others. Other development opportunities include mentorship programs, enrolment in certified programs, and participation in industry association initiatives at PRCI, NACE, CEPA, AOPL and INGAA.

Enbridge also promotes individual development, encouraging staff to select areas of focused development and then helping them to tailor programmes to meet their objectives.

“Our processes enhance safety by taking into account cross-functional requirements such as pipeline integrity and operating limitations,” adds Mr Zupan.

“Technology can provide our people with the tools and systems to safely operate the pipeline. That said, a culture that prioritises safety at every level is required if one is to realise major gains in every aspect of its pipeline operation.”

Research activity

In an effort to manage and improve the overall integrity of its pipeline system, Enbridge conducts research and development activities internally and in partnership with other organisations.

Through its representation at the Association’s conferences and committees, Enbridge is involved in the development of NACE International’s latest procedures and applications.

“Safety, pipeline control, and pipeline integrity – which includes in-line inspection – and tool development will continue to be of utmost importance for the industry,” says Art Meyer, recently appointed as Senior Vice President, Pipeline Integrity and Engineering. “In that regard, Enbridge will continue to aggressively support the development of sophisticated control systems and in-line inspection tools.”

The company also participates in joint industry projects managed by the PRCI, and regularly attends and presents at the Banff Pipeline Workshop and the International Pipeline Conference for similar purposes.

Looking toward the future

Despite Enbridge’s strong belief that the US will always be the primary market for Canadian crude, the company recognises the importance of investigating alternative markets.

“The US market is the closest and the historic market for Canadian crude. The tie between Canadian oilsands and the US is extremely strong. On the supply side, our forecast reflects about a 4 per cent annual growth rate coming out of western Canada driven by the oil sands,” says Mr Wuori.

“However, we also believe that there is an important need to look for markets other than the US as an option for Canadian producers. These include projects like Northern Gateway that would increase access to large and growing markets in Asia.”

Mr Wuori adds “The business environment in which we operate will continue to become increasingly more competitive. For Enbridge that means the importance of fulfilling our customers’ needs while ensuring that we are operating our systems with the highest levels of integrity and safety will be a top priority.”