Cook Inlet Natural Gas Storage-Natural Gas Storage

Alaska Alaska

1

Presentation AgendaPresentation AgendaPresentation AgendaPresentation AgendaCINGSA LLCCINGSA, LLCPurpose and NeedGas Storage 101Site SelectionSite SelectionSite SpecificsCustomersQ&AQ&A

2

Who is CINGSA?Who is CINGSA?

•70/30 Joint Venture•CINGSA will provide storage service to:CINGSA will provide storage service to:

•ENSTARCh h El i•Chugach Electric

•Municipal Light & Powerp g

3

Project Purpose and NeedProject Purpose and Needj pj p

Construct and operate a new underground Construct and operate a new underground natural gas storage facility in Kenai, Alaska

P k d d f d Peak winter gas demand is forecast to exceed delivery capability of local production –causing potential shortagesg p g

Project will provide operational peaking fl b l d f lflexibility and greater security of supply

Project will enhance system reliabilityProject will enhance system reliability

4

Benefits from this ProjectBenefits from this ProjectBenefits from this ProjectBenefits from this Project

Reliable deliverability short and long Reliable deliverability – short and long term benefits

Less volatile pricing Less volatile pricing

Could encourage natural gas development in Cook Inlet

5

Gas Storage 101Gas Storage 101ggFirst natural gas storage in Weland County, Ontario, y, ,Canada, in 1915, 1930 in Buffalo, New YorkMost commonly stored in depleted gas reservoirs, over 400 in use in North America storing 4 TCF Geologic considerations:◦ Porous and permeable

t t structure ◦ Impermeable cap rock

W ll d fi d l i t t◦ Well defined geologic structure

6

Similar Size Storage Station and Wells Similar Size Storage Station and Wells (Charlton, MI)(Charlton, MI)

7

8

Project ConsiderationsProject Considerationsjj

Minimize Social Avoid Cultural Minimize Social Impacts: neighborhoods, travel

tt i ht f

Avoid Cultural Resources Proper Waste

patterns, rights-of-wayPromote Positive Economic Impacts

pDisposalProtect Air QualityMi i i N iEconomic Impacts

(locally, regionally)Preserve Local Land U d T diti l

Minimize NoiseAvoid WetlandsProtect Fish and Use and Traditional

UsesProtect Fish and WildlifeMaintain Water QualityAvoid Floodplains

9

Decisions and AuthorizationsDecisions and AuthorizationsState ◦ DNR, Division of Oil and Gas: Gas Storage Lease and

Lease Plan of Operations◦ DNR, Division of Mining, Land and Water: Surface Lease,

Pipeline Easement and Land Classification Order◦ DNR, Division of Coastal and Ocean Management:

Consistency Determination◦ DOA, Alaska Oil and Gas Commission: Injection Orders, j◦ Regulatory Commission of Alaska: Tariffs◦ DEC, Air Permit, 401 Water Quality Certification*◦ DNR NAWCA*◦ DNR, NAWCA*Federal◦ U.S. Army Corps of Engineers Wetlands PermitLocal◦ Kenai Peninsula Borough Requirements

10

Process and ScheduleProcess and ScheduleProcess and ScheduleProcess and Schedule

Permitting Complete 11/2010Permitting Complete – 11/2010Following RCA approval

Surface Construction – 10/2010 to 8/20128/2012Subsurface Construction – 9/2011 to 4/20124/2012Commission Withdrawal Facilities 10/2012

11

Customer ProfilesCustomer ProfilesENSTAR◦ 5 Bcf◦ 113 Mmcfd injection◦ 91 Mmcfd withdrawal

CEA◦ 2.4 Bcf. c◦ 27 Mmcfd injection◦ 35 Mmcfd withdrawal

ML&P◦ .6 Bcf.6 Bcf◦ 10 Mmcfd injection◦ 10 Mmcfd withdrawal

12

10 Mmcfd withdrawal

QuestionsQuestionsQuestionsQuestions

13