Welcome to Barnsley Gardens!

Transcription

Welcome to Barnsley Gardens!
2013 EAST TENNESSEE NATURAL GAS PIPELINE & SALTVILLE GAS STORAGE CUSTOMER MEETING
Welcome to Barnsley Gardens!
October 3, 2013
Adairsville, Georgia
Business Agenda
Opening Remarks, Regulatory & Marketing
Update
Patti Fitzpatrick
Spectra Energy: Building for the Future
Bill Yardley
Operational Update
Mark MacPherson
LINK® Updates
Michael Peel
Break
Business Development
Bill Wickman
ICF Compass: Navigating Opportunity and
Uncertainty in the Emerging Gas Market
Greg Hopper,
Vice President, ICF Consulting
Q&A/Final Comments
Adjourn for Lunch & Activities
Spectra Energy Corp | 2
2013 EAST TENNESSEE NATURAL GAS PIPELINE & SALTVILLE GAS STORAGE CUSTOMER MEETING
Marketing & Regulatory Update
Patti Fitzpatrick
Vice President, Marketing
Regulatory Update: Saltville Storage
• 2008 Rate Settlement required Section 4 Rate filing by
October 1, 2013
– Initiated Dialogue with Customers earlier in Summer
 Dialogue is continuing
– Amendment to the 2008 Settlement was approved requesting extension
of time to submit Rate Case
 New Date: February 1, 2014
– Targeting a Settlement Agreement in principle by October 31, 2013
Spectra Energy Corp | 4
Regulatory Update: East Tennessee
• Rate Settlement expired November 2010
• No immediate plans to file a rate case at this time
– Main driver will be costs related from Pipeline Hazardous Materials
Safety Administration (PHMSA)
Spectra Energy Corp | 5
Potential New Services: Reserved Firm Capacity
• What is Reserved Firm Capacity?
– Available to any firm service holder
– Allows for primary path to be reserved for intraday nominations
– Capability for a predetermined election period as selected by the
capacity holder
– Only primary usage of capacity will be allowed during election period
– Full MDQ of the contract must be reserved by the election
– Election to reserve capacity must be made no less than 36 hours prior to
timely nomination deadline
• Currently no time frame has been established for filing
• Gathering customer input
Spectra Energy Corp | 6
2013 EAST TENNESSEE NATURAL GAS PIPELINE & SALTVILLE GAS STORAGE CUSTOMER MEETING
Spectra Energy – Building for the
Future on a Strong Foundation
Bill Yardley
President, U.S. Transmission & Storage
Opportunity:
Texas Eastern as a Mainline Supply Header
Abundant Shale Supply
Expansion Opportunities
Existing Capacity
Growth Markets
Delivering solutions for our customers
by connecting abundant supply to our
diverse and growing markets
• A major interstate system with 7.3 Bcf
delivery capacity and bi-directional flow
flexibility
• A diverse, growing and reliable portfolio of
supply including: offshore, conventional and
unconventional. Dynamic interconnects bring
supply from other basins into the system
• A wide selection of storage options including
155 Bcf of affiliated storage capacity
Spectra Energy Corp | 8
Texas Eastern
Appalachian Shale Supply Interconnect Program
60 Requests In-Service &
Under Agreement
16.6 Bcf/d
(requested tap & posted M&R capacity)
Current Appalachian Shale Supply
2.4 Bcf/d
36 In-Service (posted M&R capacity)
8.2 Bcf/d
24 In Progress & Under Agreement
(Scheduled 2013 or 2014 In-Service)
8.4 Bcf/d
Texas Eastern Appalachian Shale Supply
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Intended for informational purposes only – the meters selected for this data include, but are not limited to
producer, intrastate, interstate, and processing plant interconnections placed in service or re-purposed for receipt
volumes since the beginning of significant production from the Marcellus Shale formation (c 2007)
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
July 15, 2013
Spectra Energy Corp | 9
U.S. Transmission & Storage
Projects in Execution
AIM
MARCELLUS
NJ-NY
Expansion
OPEN
UTICA
TEAM 2014
Kingsport
Sabal Trail
Bobcat
Storage
Expansion Project
Project Scope
Capex (MM)
In-Service
NJ/NY Expansion
TEAM 2014
Bobcat Storage
800 MDTH
600 MDTH
32 BDTH
$1,200
$ 500
$ 315
4Q13
2H14
2013-2016
Kingsport Projects
OPEN
AIM
Sabal Trail
86 MDTH
550 MDTH
300 MDTH
1 BDTH
$ 120
$ 500
$ 850
$1,600
2013-2015
2H15
2H16
1H17
Spectra Energy Corp | 10
New Jersey – New York Expansion Project
Purpose:
Delivers new, critically needed natural gas
supplies to the New Jersey and New York
areas, including Manhattan
Project Scope:
 800 MMcf/d expansion connecting
Northeastern PA Marcellus supplies with
the NJ-NY region
 CapEx: $1.2 B
Customers:
 Chesapeake Energy
 Consolidated Edison
 Statoil Natural Gas
Project Status:
 Dec 2010: Filed FERC application
 May 2012: Received FERC Certificate
 July 2012: Construction started
 4Q13: In-Service (currently ~95% complete)
Facilities:
 15.2 miles of new 30” pipe extending from Staten Island to Manhattan, NY
 Replacement of ~5 miles of 20” pipe with 42” pipe on Texas Eastern
 3 compressor station reversals on Algonquin and Texas Eastern
 Meter and regulator upgrades
Spectra Energy Corp | 11
The Opposition is Determined & Well-organized
Jersey City Political
Foes United against
Spectra Energy pipeline
-Jersey Journal (October 19, 2011)
Spectra Energy Corp | 12
New Jersey-New York Expansion Project:
Direct Economic Opportunity
Spectra Energy Corp | 13
New Jersey – New York Expansion Project:
Future Economic Growth
Spectra Energy Corp | 14
New Jersey – New York Expansion Project:
Contribute to a Cleaner Environment
Spectra Energy Corp | 15
U.S. Transmission –
Future Growth Opportunities
Eastern Canada & New England
• Supply diversity
• Oil-to-gas conversions
• Power generation
• LNG export potential
NEXUS
Northeast & Mid-Atlantic
• Power generation
• Industrial markets
• LNG export potential
U2GC
Midwest & Ontario
• LDC supply diversity
• Power generation
• Industrial markets
Renaissance
Gulf Markets
Expansion
SOLA
Southeast
• ~1.8 Bcf/d of coal conversions and
incremental growth
Gulf Coast
• Industrial, petrochemical & power
generation
• LNG export markets
Spectra Energy Corp | 16
Sabal Trail Transmission, LLC
Sabal Trail Transmission, LLC is a joint
venture between affiliates of Spectra
Energy Corp and NextEra Energy, Inc.
Purpose:
New interstate pipeline into Florida providing
access to reliable onshore natural gas supply
Project Scope:
 1+ Bcf/d of capacity connecting Transco
Station 85 supply to Central Florida Hub
 CapEx: ~$3B (100%)
Customers:
 Florida Power & Light
 Additional customers expected
Project Status:
 4Q13: FERC pre-file
 4Q14: File FERC application
 4Q15: Receive FERC certificate
 2Q16: Construction to begin
 1H17: In-service
Facilities:
 ~480 miles of 36-inch diameter greenfield pipeline
 5 new compressor stations totaling 210,000 horsepower
to be phased in 2017 – 2021
 New metering and regulating stations including creation of
Central Florida Hub with interconnecting Gulfstream, FGT
and Florida Southeast Connection
Spectra Energy Corp | 17
U.S. Transmission – Projects in Development
MDth/d
Expected
In-Service
Appalachian supply to Midwest
markets
425
2H15
South Louisiana
Expansion (SOLA)
Expansion of Texas Eastern to
serve industrial markets in
South Louisiana
600
1H16
Gulf Markets Expansion
Supplying the Gulf Coast with
diverse gas supplies from both
ends of Texas Eastern
650
2H16/2H17
Renaissance
Appalachian supply to Northern
Georgia & Atlanta markets
1,300
2H18
NEXUS
Providing Appalachian producers
access to Eastern Canada LDC &
power markets
1,000
2H17
Project
Description
Uniontown to Gas City
(U2GC)
Capacity
Spectra Energy Corp | 18
2013 EAST TENNESSEE NATURAL GAS PIPELINE & SALTVILLE GAS STORAGE CUSTOMER MEETING
Spectra Energy Operations Review
Mark MacPherson
General Manager, Capacity Management
East Tennessee Natural Gas, LLC
EHDD - Knoxville
1,200
5yr avg
W11_12
W12_13
-13.1%
1,000
-17.6%
4.0%
800
2.8%
0.4%
EHDD
20.8%
600
6.4%
8.7%
52.6%
400
200.0%
200
0
Nov
Dec
Jan
Feb
Mar
Spectra Energy Corp | 20
East Tennessee Natural Gas, LLC
Monthly Deliveries
30,000
Prev 5 Winter Avg
25,000
W11_12
W12_13
7.9% 8.7%
10.9% 10.9%
11.8%
1.0%
20,000
7.2%
17.0%
27.5%
Mdth
18.2%
15,000
10,000
5,000
0
Nov
Dec
Jan
Feb
Mar
Spectra Energy Corp | 21
East Tennessee Natural Gas, LLC
Winter Load Duration Curve
1,400,000
1,200,000
1,000,000
Dth
800,000
600,000
400,000
200,000
W08_09
W09_10
W10_11
W11_12
W12_13
0
1
6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121 126 131 136 141 146 151
Spectra Energy Corp | 22
East Tennessee Natural Gas, LLC
1400
Top 25 Delivery Days
07_08
1200
08_09
2/1
09_10
1/25
10_11
1/24
11_12
12_13
1/22
2/16
MDth/d
1000
800
600
400
200
0
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Spectra Energy Corp | 23
East Tennessee Natural Gas, LLC
Winter Scheduled Throughput – Boyd’s Creek
4,500
Prev 5 Winter Avg
W11_12
W12_13
4,000
10.8%
3,500
14.8%
30.8%
3,000
31.4%
Mdth
2,500
2,000
37.1%
35.7%
44.9%
29.2%
63.7%
106.0%
1,500
1,000
500
0
Nov
Dec
Jan
Feb
Mar
Spectra Energy Corp | 24
East Tennessee Natural Gas
Supply Diversity – Winter (MDth/d)
Operator
W09-10
W10-11
W11-12
W12-13
36
53
57
59
275
284
281
346
Columbia Gulf
1
13
10
2
Southern Natural
9
6
7
9
Midwestern
12
10
6
8
Other
18
15
15
16
West End Supply
351
381
376
440
Nora Lateral
147
152
146
133
Jewell Ridge Lateral
126
132
134
134
Stone Mountain
16
16
18
17
East End Supply
289
300
298
284
Texas Eastern
Tennessee
Spectra Energy Corp | 25
East Tennessee Natural Gas, LLC
Summer Load Duration Curve
900,000
800,000
700,000
600,000
Dth
500,000
400,000
300,000
200,000
100,000
2009
2010
2011
2012
2013
0
1
6
11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121
Spectra Energy Corp | 26
East Tennessee Natural Gas, LLC
Top 25 Summer Delivery Days
900
2010
2011
2012
2013
800
700
7/9
MDth/d
600
500
400
300
200
100
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Spectra Energy Corp | 27
East Tennessee Natural Gas, LLC
Summer Scheduled Throughput – Boyd’s Creek
4,000
Prev 5yr Avg
2012
-32.0%
2013
-12.7%
3,500
-15.9%
-59.5%
3,000
2,500
Mdth
48.6%
2,000
42.7%
60.3%
1,500
-6.0%
1,000
500
0
May
Jun
Jul
Aug
Spectra Energy Corp | 28
East Tennessee Natural Gas, LLC
Supply Diversity – Summer (MDth/d)
Operator
Summer 10
Summer 11
Summer 12
Summer 13
46
48
44
130
126
154
248
118
0
0
4
1
Southern Natural
30
36
30
8
Midwestern
35
0
0
0
Other
16
15
15
14
West End Supply
253
253
341
271
Nora Lateral
144
140
136
125
Jewell Ridge Lateral
117
129
134
112
Stone Mountain
17
17
16
15
East End Supply
278
286
286
252
Texas Eastern
Tennessee
Columbia Gulf
Spectra Energy Corp | 29
East Tennessee Natural Gas, LLC
Yearly Restrictions
September 2012 – August 2013
Location
September 2011 – August 2012
Seal Only
Restrictions
Seal Only
Restrictions
Topside East
70
30
7
0
Topside South
11
58
18
37
Lobelville
27
86
11
102
Boyd’s Creek
28
55
28
26
Flatwoods
12
2
31
61
Glade Spring
0
0
3
8
30
Spectra Energy Corp |
Gas Quality
Update
Current East Tennessee Tariff
Constituent
BTU
Wobbe
Minimum
Maximum
967
1,110
1,298
1,400
Carbon Dioxide (CO2)
3.00% *
Nitrogen (N2)
3.00% *
Oxygen (O2)
0.10%
Hydrogen Sulfide (H2S)
0.25 grains (4.0 ppmv)
Total Sulfur (TS)
20.0 grains (337 ppmv)
Water Vapor
Less than 7 lbs /mmscf
C6+
0.05 GPM
* CO2+N2 must not be greater than 4%
Spectra Energy Corp | 32
Marcellus Shale Supply Growth
3,000,000
2,500,000
Dth
2,000,000
1,500,000
1,000,000
500,000
0
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13
Spectra Energy Corp | 33
Berne Compressor Station
Texas Eastern
Berne Compressor Station, Ohio
East
Tennessee
Spectra Energy Corp | 34
Supply Distribution
Marcellus Supply TETLP Berne to Uniontown
2500000
Total Marcellus
Supply Above 12% C2+
2000000
1500000
1000000
500000
0
Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13
Spectra Energy Corp | 35
Shifting Flow Patterns
New shale supplies are shifting
flow patterns, Texas Eastern is
ideally positioned to move new
supplies to market
Spectra Energy Corp | 36
TETLP Berne Station Load Duration Sep - Aug
3,500,000
C12_13
C11_12
C10_11
3,000,000
2,500,000
2,000,000
Dth
1,500,000
1,000,000
500,000
0
-500,000
-1,000,000
-1,500,000
1 13 25 37 49 61 73 85 97 109 121 133 145 157 169 181 193 205 217 229 241 253 265 277 289 301 313 325 337 349 361
Days
Spectra Energy Corp | 37
Impact to East Tennessee
Changing Flows on Texas Eastern
1107
1087
1067
BTU
1047
1027
1007
987
Mt. Pleasant
967
9/1/12 10/1/12 11/1/12 12/1/12
Knoxville
1/1/13
2/1/13 3/1/13
4/1/13
5/1/13
6/1/13
7/1/13
8/1/13
9/1/13
Spectra Energy Corp | 38
2013 EAST TENNESSEE NATURAL GAS PIPELINE & SALTVILLE GAS STORAGE CUSTOMER MEETING
LINK® System Review
Michael Peel
Senior Commercial Business Analyst, LINK® Systems
LINK® Support Team
Joe
Casey
Blanca
Rivera
Kim
Chesler
Michael
Wolf
Michael
Peel
Cathy
Johnson
Joyce
Schubrick
Jeff
Pekar
Eugene
Brennan
Production Support
Group Leader
Projects
Sandra
Bryant
Elias
Macal
Muzammil
Siddiqui
Sean
Zhang
Spectra Energy Corp | 40
LINK® - Our Goal
To make the LINK® system the leading
Customer Interface system in the
Natural Gas Transmission industry
• Key Areas of Focus:
– Identifying and implementing system
enhancements that benefit customers
– Integrating customer feedback into system
design, quality control and service
– Promptly addressing customer
issues/concerns
– Maintaining quality measures
– Providing quality customer training
– Ensuring compliance with FERC gas tariffs,
FERC regulations, and NAESB standards
Spectra Energy Corp | 41
ETNG/Saltville Improvements
2013 Improvements
2014 Improvements
• Hourly batch validations on ETNG
and Saltville
• Final automation for retroactive
adjustments
• Enhanced Imbalance Information
(In-Progress)
• Enhanced information across
LINK® modules
• Retroactive Adjustment
Automation (Phase 2)
• On-line execution of EDI Trading
Partner agreements
Spectra Energy Corp | 42
Enhanced Imbalance Screens
The technology behind the LINK® System is
being enhanced to provide value added
information and new ways of examining data.
The first phase of this effort will be to enhance
Shipper Imbalance Summary screens.
Spectra Energy Corp | 43
Enhanced Imbalance Screens
Grouping, drill downs and graphing
capabilities will allow customers to
easily view their company data.
Spectra Energy Corp | 44
Measurement Report Center
Station Balance Change Report
Station Balance Change Report
provides within month changes
for prior days
Spectra Energy Corp | 45
Measurement Report Center
Station PPA Report
Station Prior Period Adjustment
(PPA) report provides changes to
volumes after measurement close.
Spectra Energy Corp | 46
Measurement Report Center
Report Subscription
Several reports available for
subscription
Subscriptions can be daily/monthly
Enter a Report Description
You can select Excel, CSV, PDF
formats
The Email address is not editable it
is the address associated with the
Link Account
You can select your own schedule
run time with an 11pm-5am
blackout window
Spectra Energy Corp | 47
Into the Future…
• What additional enhancements can we implement that would
provide value?
• What can we do better?
• Do you have any questions?
Spectra Energy Corp | 48
49
2013 EAST TENNESSEE NATURAL GAS PIPELINE & SALTVILLE GAS STORAGE CUSTOMER MEETING
Business Development
Bill Wickman
Director, Southeast Business Development
East Tennessee Natural Gas Pipeline &
Saltville Gas Storage
Spectra Energy Corp | 51
Kingsport Projects
Purpose:
Provides additional firm transportation
capacity to support supply diversity for
Eastman Chemical Company’s power
generation facility in Kingsport, Tennessee
Project Scope:
 25 MMcf/d of firm capacity –
in-service: 4Q13
 61 MMcf/d of firm capacity –
in-service: 1Q15
 CapEx: $120 MM
Customers:
 Eastman Chemical Company
Project Status:
 Jan 2013: Executed precedent agreement
 Aug 2013: FERC filing
Facilities:
 Replacing 5.7 miles of 8” pipe with 24” pipe on East Tennessee
 3.3 miles of new pipeline loop and 6.5 miles of new mainline expansion
 Compressor station modifications at Glade Spring and Fordtown stations
Spectra Energy Corp | 52
Wacker Project
Purpose:
Provides gas supply to a new hydrogen,
steam and industrial processes for the
manufacturing facility near Cleveland,
Tennessee
Project Scope:
 5,700 MDTH/d from Texas Eastern
 In-service: 3Q14
 CapEx: $4.8 MM
5,700 dth/d
supply from
Texas Eastern
Wacker Chemie Plant
5,700 dth/d delivery
0.5 mile,
8” lateral
Customers:
 Wacker Chemie AG
Project Status:
 Executed precedent agreement June 2012
 FERC Certificate January 2013
Facilities:
 2,800 feet of 8 inch line with launcher and receiver stations on East Tennessee
 Various pipeline modifications to accommodate
Spectra Energy Corp | 53
2013 EAST TENNESSEE NATURAL GAS PIPELINE & SALTVILLE GAS STORAGE CUSTOMER MEETING
ICF Compass: Navigating Opportunity and
Uncertainty in the Emerging Gas Market
Greg Hopper
ICF International, Vice President & Regional Director
Recognized by:
Today’s Activities
Afternoon Activities
Lunch - pick up at Pavilion
Golf - shotgun start
Spa treatments at spa facility
Sporting clays at sporting club
Hike – meet on lawn in front of Town Hall
Evening Events
Reception – Town Hall
Dinner – Pavilion Terrace
Hospitality Suite – Godfrey Cottage
11:00am
12:30 pm
Individual times
1:00 pm
1:00 pm
7:00 pm
7:30 pm
After dinner
Spectra Energy Corp | 56