Impacts on the TETCO system

Katrina and Rita
Impacts on DEGT Pipeline Systems
Grand Chenier Liquids Platform
INGAA Foundation Midyear Meeting
April 21, 2006
San Antonio, TX
Greg Bilinski, Group Vice President, DEGT
Impacts on the TETCO system
Compressor Station
AL
OK
Station Site
MS
Processing
CompressorPlant
Station
Facility
Station out
Siteof
service
Processing Plant
Texas Eastern
Facility
out of LP
Transmission,
service
AR
Yazoo City
TX
LA
Longview
W. Monroe
Kosciusko
Clinton
Joaquin
Union Church
Texas Eastern
Transmission, LP
Huntsville
Vidor
Gillis
Mt. Belvieu
Provident City
Thomaston
Charco
Opelousas
White Castle
Grand
Grand
Chenier
Chenier
Blessing
St. Francisville
Larose
Venice
((Dynegy)
Dynegy))
Venice Plant
Plant (Dynegy
Venice
Gulfstream
Iowa
Iowa Plant
Plant (TETLP)
(TETLP)
Hurricane Rita’s
Path (9/24/05)
Hurricane Katrina’s
Path (8/25/05)
Impacts Seen Far and Wide across DEGT
1. Markets off Gulfstream
Pipeline in Florida:
•
Impacted by supply
crunches in fuel oil,
natural gas & coal
2. Southeast New Mexico:
•
Gathering & Processing
facilities shut-in due to
refinery evacuations
resulting in a lack of
natural gas liquids takeaway capacity
3. Ontario (Union Gas):
•
Regulators requested all
utilities demonstrate
readiness for possible
tight supply access
Grand Chenier, Aerial view 7 days after Rita
Grand Chenier, Dehy Platform
Platform = +18 ft; Storm surge reached +17 ft.
Floodwater beneath platform
*note* seaweed & grass in overhead conduit and piping
Iowa Gas Plant, wind damage
Remaining Flood Water
Typical damage to
insulation on turbine
exhaust stacks
Iowa Turbine Building
Venice Port, Supply & Crew Bases
Venice Processing Plant, after Katrina
Larose Station, flooded after Rita
Larose Station, flooded after Rita
Offshore Cameron System
Missing
Handrails &
Deck Grating
Offshore Cameron System
Damaged Stairway
Platform
Underwater Damage, Severed Riser at -219 ft.
Texas Eastern - Katrina and Rita Supply Impact
Louisiana Offshore
Impact of Hurricanes on Natural Gas Prices –
January 2006 Henry Hub Price
$16.00
Katrina Landfall
Aug. 28, 2005
Rita Landfall
Sept. 24, 2005
$14.00
$12.00
$8.00
$6.00
$4.00
$2.00
Source: Energy Information Administration
26-S
ep-0
5
12-S
ep-0
5
29-A
ug-0
5
15-A
ug-0
5
1-Au
g-05
18-J
ul-05
4-Jul05
20-J
un-0
5
6-Jun
-05
23-M
ay-05
9-Ma
y-05
25-A
pr-05
11-A
pr-05
28-M
ar-05
14-M
ar-05
28-F
eb-05
14-F
eb-05
31-J
an-0
5
17-J
an-0
5
$0.00
3-Jan
-05
$ / MMbtu
$10.00
Impact on DEGT Employees – Cameron, LA
Impact on DEGT Employees – Houston, TX
Challenges/Concerns for the 2006 Hurricane Season
§ Damage to DEGT Pipeline Systems can cause:
• Loss of flowing supply affecting supply / demand balance
during peak periods of demand
• Supply / demand imbalance contributing to price volatility
and to daily system imbalances
• A need to be proactive in balancing pools and managing
imbalances
• Higher natural gas prices which may require increases in
penalty charges to maintain compliance with Operational
Flow Orders
Lessons Learned
§ Hurricane Preparedness plans are being reviewed
& updated to reflect the lessons learned
§ Pre-storm preparations:
• Study worst case scenarios & review stock of emergency
supplies
• Communications systems were not dependable – plant
for periods of blackout.
• Be aware that Hurricanes may shift at the last minute
• Shelter for employees and their families
Lessons Learned
§ Post-storm
• Requires a coordinated effort from resources outside the
affected area
8 “Incident
Command and Control” structure
• Commercial power out of service for over 2 weeks
8 Required
fuel, water, groceries, etc. brought in to sustain base
operations
• Wide spread damage has all contractors very busy
• Plans for accommodating employees with destroyed
homes is necessary
• DEGT’s plan for portable generators worked well