Pipeline Profiles: Enbridge Norman Wells Pipeline

Pipeline system and key points

Updated November 2017

The Enbridge Norman Wells pipeline is owned by Enbridge Pipelines (NW) Inc. Norman Wells pipeline is an 869 kilometer pipeline commissioned in 1985 to transport crude oil from Imperial Oil’s facility in Norman Wells, Northwest Territories to Zama in northern Alberta, where it connects with the Alberta oil pipeline network. The pipeline is used exclusively by Imperial Oil Resources.

In November 2016, Enbridge shut down the Norman Wells Pipeline, also known as Line 21, as a preventive measure to investigate and address ground instability on the south slope of the Mackenzie River pipeline crossing near Ft. Simpson, Northwest Territories. In March 2017, Enbridge applied to the Board to replace a 2.5 kilometre section of the pipeline under the Mackenzie River, and to decommission the replaced section of the pipeline. The National Energy Board held a public hearing for the Line 21 Segment Replacement Project in late 2017. Currently the pipeline is not transporting any product and there is no date set for a restart of the pipeline.

Official Board documents related to the construction, operation and maintenance of the Enbridge NW pipeline can be found here: Enbridge Pipelines (NW) regulatory documents [Folder 140186].

Map – Enbridge Norman Wells Pipeline

Source: NEB

Text version of this map

This map provides an overview of the Norman Wells Pipeline System.

Throughput and capacityFootnote 1

Updated November 2017

Open data can be freely used and shared by anyone for any purpose. The data for these graphs are available here.

Abandonment funding

Updated November 2017

The Board requires pipelines to set aside funds to safely cease operations of a pipeline at the end of its useful life. In 2013, Enbridge Pipelines Inc. estimated it would cost $37 million to do this for Enbridge Norman Wells. These funds will be collected over 11 years and are being set aside in a trust. Official Board documents related to abandonment funding can be found here, sorted by year and by company: abandonment funding documents [Folder 3300366].

Tolls

Updated November 2017

A toll is the price charged by a pipeline company for transportation and other services. Tolls allow pipeline companies to safely operate and maintain pipelines. Tolls also provide funds for companies to recover capital (the money used to build the pipeline), pay debts, and provide a return to investors. The interactive graph below shows the tolls for key paths on the pipeline since 2006.

Tolls on the Norman Wells pipeline are regulated on a complaint basis, based on a cost of service methodology. The cost of service is calculated according to the Norman Wells Pipeline Amending Agreement approved by the National Energy Board in 1998. Year-end adjustments are based on the actual full cost of service and throughput for a specific year. Enbridge determines its allowable equity return using the formula from the National Energy Board's RH-2-94 decision. Significant toll increases are attributed to decreasing throughput and increased integrity spending.

Official Board documents related to the traffic, tolls and tariffs for the Norman Wells can be found here: Enbridge Norman Wells toll documents [Folder 305098].

Pipeline financial information

Updated November 2017

Pipeline companies report important financial information to the Board quarterly or annually. Good finances enable pipeline companies to maintain their pipeline systems, attract capital to build new infrastructure, and meet the market’s evolving needs. The data in this table comes from cost of service reports [Folder 305601] filed with the Board.

Table 1: Enbridge Pipelines (NW) Inc. financial data
Enbridge Pipelines (NW) Inc. financial data 2010 2011 2012 2013 2014 2015 2016 2017
Cost of service (millions) $32 $75 $47 $65 $69 $62 $62Table Note a $53Table Note a
Rate base (millions) $113 $109 $110 $141 $162 $151 $128Table Note a $105Table Note a
Return on equity 8.46% 8.08% 7.58% 7.23% 7.93% 7.64% 7.38% 6.86%Table Note a
Deemed equity 50% 50% 50% 50% 50% 50% 50% 50%

Corporate financial information

Updated November 2017

The Enbridge Norman Wells pipeline is part of Enbridge Inc. In 2016, earnings from the Norman Wells pipeline accounted for less than 2% of Enbridge Inc. profits.

We welcome your feedback. The new pipeline profiles for Enbridge Mainline and Enbridge Norman Wells have a newer format than the other pipeline profiles. What do you think? Email energymarkets@neb-one.gc.ca.

 

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