docVector Pipeline TM
download 
Report Transcription
Vector Pipeline TM
Vector Pipeline MPSC Meeting March 13, 2013 TM Overview Vector Pipeline TM • Introduction • Vector System • Commercial Products • System Utilization • 2013 Operation Activities • Historical Highlights • Michigan Connections / Supply Hub • North American Gas Fundamentals • Discussion Vector Pipeline TM System Map Vector Pipeline TM Commercial Products • Firm Services – FT-1 – FT-H – FT-L Firm Transportation Hourly Firm Transportation Limited Firm Transportation • Interruptible Services – – – – IT-1 PALS-1 TTS MBA Interruptible Transportation Park and Loan Service Title Transfer Service Management of Balancing Agreement Competitive Tariff Rates to Michigan Vector Pipeline TM SW Commodity Basis to Henry Hub (HH) SE Chicago Vector Michigan HH + $0.39 ANR HH + $0.41 + $0.02 Trunkline HH + $0.42 + $0.03 HH + $0.46 + $0.07 Panhandle • Based on Henry Hub Prices from 02/27/2013, one year starting April 2013 • Includes fuel based on one year average Vector Pipeline TM 2001 2002 2003 2004 2005 2006 2007 In-service - December 1, 2000 Initial Delivery Rate – 250,000 Dth/D Annual Deliveries – 257 MMDth Five Original Shippers New Interconnections • Washington 10 – DTE Storage • Crown Point – NIPSCO • La Porte – NIPSCO 2008 2009 2010 2011 2012 Vector Pipeline TM 2002 2001 2003 2004 2005 2006 2007 Highland Compressor Station In-service Capacity increase to 925 MDth/D (Annual Long haul) New Interconnections • Wheeler – Crossroads • Crete – Crete Energy Plant • Jackson – Kinder Morgan Plant 2008 2009 2010 2011 2012 Vector Pipeline TM 2002 2001 2003 2004 2005 2006 New Interconnections • St. John – ANR Pipeline • Hartland – Consumers Energy • Ray – Consumers Energy Modify Dawn for Receipts 2007 2008 2009 2010 2011 2012 Vector Pipeline TM 2002 2001 2003 2004 2005 New Interconnections • Guardian • Bluewater First Customer Survey 2006 2007 2008 2009 2010 2011 2012 Vector Pipeline TM 2002 2001 2003 2004 2005 2006 New Interconnections • Courtright – Union Gas First Engine Replacement First Expansion Open Season File for First Expansion 2007 2008 2009 2010 2011 2012 Vector Pipeline TM 2001 2002 2003 2004 2005 Smart Pig Inspection Implement QuickNom TM 2006 2007 2008 2009 2010 2011 2012 Vector Pipeline TM 2001 2002 2003 2004 2005 2006 2007 Expansion In-service Joliet Compressor Station Washington Compressor Station Capacity increase to 1,171 MDth/D (Annual Long haul) 2nd Expansion Open Season and Filing Relocated Gas Control/Scheduling to Houston 2008 2009 2010 2011 2012 Vector Pipeline TM 2002 2001 2003 2004 2005 2006 2007 New Interconnections • Greenfield – Greenfield Energy Centre • Sombra – Enbridge Gas Distribution New Dawn Filter/Separators Installed 2008 2009 2010 2011 2012 Vector Pipeline TM 2001 2002 2003 2004 2005 2006 2007 2nd Expansion In-service Athens Compressor Station Springville & Highland Modifications Capacity increase to 1,275 MDth/D (Annual Long haul) Guardian Interconnect expanded to 800 MDth/D 2008 2009 2010 2011 2012 Vector Pipeline TM 2001 2002 2003 2004 2005 2006 2007 Implemented current rates Reversed flow to Joilet for the first time 4 Scheduled engine change outs Enhanced Tie-in/Lateral Inspections 2008 2009 2010 2011 2012 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Average Dth/Day Vector Pipeline TM Vector Deliveries 2,000,000 1,800,000 Athens 1,600,000 Joliet & Washington 1,400,000 1,200,000 Highland 1,000,000 800,000 600,000 400,000 200,000 - Canada U.S. Long Haul Capacity Vector Pipeline TM 2013 Activities • Engine Replacements – Washington – Spring 2013 – Two Units – Springville – Fall 2013 – One unit • Internal Pipeline Inspection – Required every seven years – 42 inch mainline & 36 lease-line (DTE Gas) – Spring 2013 Vector Michigan Supply Hub Vector Pipeline TM WISCONSIN Lake Huron MICHIGAN Lake Michigan Washington ONTARIO Highland Dawn (Union) Detroit Chicago Athens Lake Erie Joliet Springville Vector Expansion Capabilities Vector Pipeline TM • Long Haul Lake Huron MICHIGAN • 105 MDth/d Incremental Capacity • 2 New Compressor Units • Lease Line Loop Lake Michigan Washington WISCONSIN ONTARIO Dawn (Union) Highland Detroit Chicago Athens Lake Erie Springville Joliet • Short Haul • 300-800 MDth/d Incremental Capacity ILLINOIS INDIANA • Lease Line Loop • Potential Compression Michigan Connections Vector Pipeline TM Sheridan Interconnection Vector Pipeline TM Michigan Production Up to 4.5 MMcf/d March, 2013 Eliminates Flare Gas Jackson Power Plant Vector Pipeline TM 550 MW Merchant Plant Direct Connect 113,000 Dth/d Delivery Capacity 17 Mile Lateral Owned By Consumers Consumers Interconnections Vector Pipeline TM Capacities Hartland: 202,000 Dth/d Ray: 282,800 Dth/d Vector Benefits Deliveries into heart of SE MI. Reduces compression needs. By-passes Line 1200 restrictions. Segmentation allows for supply from Chicago or Dawn Hubs simultaneously. DTE Gas Interconnections Vector Pipeline TM Capacities Milford: 1,515,000 Dth/d Belle River: 1,515,000 Dth/d Vector Benefits Deliveries into heart of SE MI. Deliveries directly into Belle River Storage Complex. Enhances B.R. to Milford Line. Segmentation allows for supply from Chicago or Dawn Hubs simultaneously. Michigan Storage Connections Vector Pipeline TM Consumers – Ray 57 Bcf – Direct (inc. base gas) 136 Bcf – Total System DTE Storage – Wash. 10 90 Bcf DTE Gas – Belle River 69 Bcf – Direct 137 Bcf – Total System Bluewater – Lenox 36 Bcf Note: Cyclable volumes except where noted. North American Fundamentals Vector Pipeline TM Shale gas in the Northeast, South and WCSB account for most of North America supply growth Cumulative Change from 2011 (Bcf/d) North America 2015 – 3.6 2020 – 17.6 2025 – 28.1 WCSB 2015 – (1.0) 2020 – 2.5 2025 – 3.7 West Coast 2015 – (0.0) 2020 – 0.2 2025 – 0.4 Rockies 2015 – (0.0) 2020 – 0.8 2025 – 1.6 San Juan 2015 – (0.4) 2020 – (0.7) 2025 – (0.6) Source: Enbridge July 2012 View As Presented at Vector Customer Meeting October 2012 Permian 2015 – 0.9 2020 – 1.8 2025 – 2.6 MidCon 2015 – 0.6 2020 – 0.6 2025 – 1.4 Eastern Canada 2015 – 0.1 2020 – (0.1) 2025 – (0.0) Appalachia 2015 – 3.9 2020 – 10.5 2025 – 13.6 Gulf Coast 2015 – 0.1 2020 – 2.5 2025 – 5.6 Offshore 2015 – (0.6) 2020 – (0.5) 2025 – (0.2) Supply reductions shown in red North American Fundamentals Vector Pipeline TM WCSB gas production will reverse its decline WCSB Gas Production 18 Historical Projected 16 14 Bcf/d 12 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: NEB, Enbridge As Presented at Vector Customer Meeting October 2012 North American Fundamentals Appalachian production will continue to grow rapidly and will largely drive NA market dynamics Vector Pipeline TM Appalachian Shale Production 16 14 (Bcf/d) 12 Utica 10 8 6 4 2 0 2008 2009 Source: NEB, Enbridge As Presented at Vector Customer Meeting October, 2012 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: The Utica shale play is in the very early stages of development. Based on the growth experienced with the Marcellus play, the Utica production profile could be substantially higher than shown. North American Fundamentals Vector Pipeline TM Over the next five years, growing shale gas basins will displace flows from traditional basins Change in flows between 2012 and 2017 WCSB Appalachia Rockies Mid Continent Permian Source: Enbridge July 2012 View As Presented at Vector Customer Meeting October 2012 MX Exports Red = Decrease Blue = Increase Gulf Coast LNG Exports GoM Offshore 29 North American Fundamentals Vector Pipeline TM Vector’s Observations • Continued Canadian supply into Chicago • Continued Mid-Continent supply into Chicago • Growth in Marcellus and Utica basins • Marcellus back to Chicago via REX • Need for Nexus Project • Displacement of SE supply into Midwest Benefit / Summary Vector Pipeline TM • Vector Supports Michigan • • • • Corporate Office Infrastructure High pressure deliverability into SE MI Promotes Michigan storage activity • Competitive Rates • Access to multiple supply basins • Reliable delivery into Michigan Vector Contacts Vector Pipeline TM John Donaldson - President (734) 462-0238 [email protected] Belinda Friis – Chief Compliance Officer (734) 462-7621 [email protected] Roland Vandenbroeck – Mgr Acct / Finance (734) 462-0239 [email protected] Matt Malinowski - Mgr Market Development (734) 462-0236 [email protected] Amy Bruhn - Mgr Transportation Services (734) 462-0237 [email protected] David Bilyk - Mgr Operations / Engineering (734) 462-0235 [email protected] Corrie Towns – Senior Engineer (734) 462-7619 [email protected] Bob Smith – Mgr Regulatory / Admin (734) 462-0234 [email protected] Lisa Steinman – Office Manager (734) 462-0232 [email protected] Fax: (734) 462-0231 www.vector-pipeline.com Vector Pipeline TM