Alliance Pipeline

Monetizing Gas & NGLs

Jason Feit

Business Development Manager

Platt's 6th Annual Rockies Oil & Gas Conference

Forward looking statements

and information

Certain information contained in this [presentation], including use

of the words “anticipate”, “expects”, and “expected to”, constitute

forward looking statements and information. Although Alliance

[Canada or US] believes that these statements are based on

information and assumptions which are current, reasonable and

complete, these statements are necessarily subject to a variety of

risks and uncertainties including, but not limited to, future operating

performance, regulation, economic conditions and fundamentals

affecting the oil and gas producing and marketing industries.

Should one or more of these risks or uncertainties materialize or

fail to materialize, or should underlying assumptions prove

incorrect, actual results may vary materially from those expected.

Ownership structure

Strong and stable ownership:

• 50% Enbridge Inc.

TSX:ENB / NYSE:ENB

• 50% Veresen

TSX:VSN

• Key Locations

Alliance Pipeline Ltd. – Calgary, Alberta

Alliance Pipeline L.P. – Eden Prairie, Minnesota

North Dakota Area Office – Valley City, ND

Joliet, Illinois - market deliveries

3

Traversing the Prolific

Montney and Bakken

4

• 2,400 miles of 36” pipe

• 11 years of safe operations

• Transport capacity of 1.6 Bcfd of which 1.405

Bcfd contracted through 2015

• Over 6 Tcf has been transported since start-up

• Receiving dense phase gas up to 1,500 btu/scf

Technology

• Pipelines are one of the safest methods of transporting

hydrocarbon products

• Alliance is one of the newest and most modern pipeline

systems in North America, built using the most advanced

design and technology available at the time

• 20% to 50% thicker than most operating pipelines, which helps

prevent damage from external forces, and reduces the

possibility of failure caused by corrosion

• The pipeline can also be remotely operated and monitored from

a central site and an advanced leak detection system will warn

our control center of even the smallest leaks

Advanced Reliability

• Driven by industry-leading standards

and a rigorous integrity management

plan, Alliance consistently delivers

exceptional reliability

• Alliance’s fleet of GE jet turbines, used

for compression, leads the industry in

providing consistent and reliable

service

2011 reliability: 99.91%

• Alliance customers can be confident

their product is on the move to market

as planned

Cost Effective Solution for Gas & NGLs

• Alliance is optimized to ship liquids-rich natural gas with NGL

processing facilities in place at the terminus of our line in

Chicago

• Shipping NGLs within the gas stream:

Eliminates requirement for customers to invest in costly upstream processing facilities

Enables E&P customers to focus on their core business – getting gas and liquids out of the ground

Creates optionality for midstream and marketing companies

Provides an economic advantage by processing NGLs at a world-scale plant with significant economies of scale

Typical Gas Processing Flow

Avoided Capital Costs

Alliance Reduces a Producer’s Capital

Costs & Frees Up Constrained Resources

• Alliance allows shippers to avoid the need for two

pipelines or excessive trucking/railing as it can

transport both liquids and gas to market in a

commingled stream

• Reduces field processing costs

• Eliminates concerns related to gas flaring

• Allows producers to focus capital at the drill bit

• Frees up resources – truck drivers, plant

operators, redeploy human capital

• Offers a safer and more efficient option

• Less impacted by weather

• Reduces local vehicle traffic

• More environmentally friendly

9

Fractionation

(Ethane, Propane, Butane & Pentanes +)

Deep Cut

Shallow Cut

Inlet Separation

NGLs Transported on Alliance

10

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Barr

els

per

Day (

000’s

)

C5+

NC4

IC4

C3

C2

N.D. NGLs

Supply Story Within 25 Miles of APL

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• Production within 25 Miles (40 Kms) of APL has grown 14% since 2001 to nearly 6

Bcf/d while overall WCSB production has declined 15%

• ~ 1/3 of WCSB

production lies within the

25 mile radius of Alliance

• APL forecasts that by

2020 production within

this radius will grow

another 35% over 2010

levels

• Alliance’s close proximity

to the growth allows

connection for relatively

low cost

North Dakota Gas Production

12 Source: North Dakota Pipeline Authority

New Natural Gas Pipeline Infrastructure

will Reduce Flaring in North Dakota

13

North Dakota Forecast Comparison

14

15

Alliance Pipeline

Operations in North Dakota

• 324 miles of pipelines in North Dakota

• 3 compressor stations

Towner

Wimbledon

Fairmount

• Current Receipt Location – Bantry ND

• Planned Receipt Location – Tioga ND

• Delivery Interconnections:

Hankinson, ND

Rosholt, SD

Alliance Assets in North Dakota

Tioga Lateral Project

Moving Gas and NGLs to the Chicago Market

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• Designed to transport gas and NGLs

• Shipping NGLs within the gas stream lowers cost of transport

• Reduces expensive upstream processing facilities

• Allows producers to focus capital at the drill bit

Tioga Lateral Project Benefits:

• Reduced flaring of Bakken Natural Gas

Increased potential economic value for:

• Mineral Owners

• Energy Companies

• State of North Dakota

Reduced ‘green-house gas emissions’ in ND

Increased ‘domestic’ energy to Midwest markets

• Local economic benefits:

Incremental tax revenue

Construction jobs

Local service jobs (restaurants / hotels / etc.)

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Tioga Lateral Project

Application & Timeline:

• Application filed with the Federal Energy Regulatory

Commission (FERC)

Detailed Environmental, Cultural, Historical and Routing Survey requirements

Proactive system design focused on safety

Diligent Public Consultation opportunities

• Pipeline design: @ 80 miles: 12 inch

Max Pressure: 2160 psi

• Pending FERC approval:

Construction: Oct 2012 – May 2013 In Service: July 2013

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Reaching Beyond Tioga – Next Steps

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ACE Hub “Alliance Chicago Exchange”

Alliance ACE Connection Points

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ACE Hub Services:

Enhanced Title Transfers • An administrative, no-charge service that

enables gas transported by FT-1

shippers to the ACE Hub to transfer title

to others for: delivery, title transfer to

another shipper; and or nomination of the

gas under a Park and Loan transaction

Wheeling • Interruptible Wheeling (IW) service

provides transportation between points in

the ACE Hub via displacement

Park and Loan (PAL) • This service provides the ability to park

gas or obtain a loan of gas utilizing the

pipelines system’s operationally available

line pack capacity

• NICOR

• NGPL

• Midwest gas

Transmission

• Guardian Pipeline

• Vector Pipeline

• ANR Pipeline

• Peoples Gas Light

• AuxSable

Questions? Contact Alliance Customer Service Price Desk Hotline (403) 517-6277 option 4

Closing Comments

• Alliance is optimized to ship liquids-rich natural gas with NGL

processing facilities in place at the terminus of our line in

Chicago

• Shipping NGLs within the gas stream

Eliminates requirement for customers to invest in costly upstream processing facilities

Enables E&P customers to focus assets on their core business – getting gas and liquids out of the ground

• Tioga Lateral - anticipated in-service date of July 2013

• Alliance – looking for opportunities to grow

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Contacts

www.alliancepipeline.com

Jason Feit Business Development Manager

Direct: (403) 517-7734

Email: jason.feit@alliancepipeline.com

Bob Blattler Manager, Supply Development

Direct: (403) 517-6431

Email: bob.blattler@alliancepipeline.com