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