intermountain west production -- getting gas to market jim cleary el paso western pipelines ipaa...
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Intermountain West ProductionIntermountain West Production-- -- Getting Gas to MarketGetting Gas to Market
Jim ClearyJim ClearyEl Paso Western PipelinesEl Paso Western Pipelines
IPAA Mid-Year MeetingIPAA Mid-Year Meeting
June 14, 2004June 14, 2004
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Cautionary Statement Regarding Cautionary Statement Regarding Forward-looking StatementsForward-looking Statements
This presentation includes forward-looking statements and projections, This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this anticipated results or other expectations expressed in this presentation, including, without limitation, the ability to implement and presentation, including, without limitation, the ability to implement and achieve objectives in our long-range plan; general economic and achieve objectives in our long-range plan; general economic and weather conditions in geographic regions or markets served by the weather conditions in geographic regions or markets served by the company and its affiliates; competition; and other factors described in company and its affiliates; competition; and other factors described in the company’s (and its affiliates’) Securities and Exchange the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company makes these statements and Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional, important factors that may must be made to those filings for additional, important factors that may affect actual results. The company assumes no obligation to publicly affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.as a result of new information, future events, or otherwise.
El Paso Western PipelinesEl Paso Western Pipelines
WICWICCIGCIGEPNGEPNGMojaveMojaveCheyenne PlainsCheyenne Plains
Big Horn
Wind River
Green River
San Juan
Denver-Julesburg
AnadarkoRaton
Uinta
Piceance
Powder River
Permian
3
4
2003 NPC Study – Rockies Supply2003 NPC Study – Rockies Supply
% of National% of NationalProductionProduction
% of Total% of TotalUndiscovered PotentialUndiscovered Potential
Lower 48Lower 48 Lower 48Lower 48
RockiesRockies RockiesRockies
5
Natural Gas ProductionNatural Gas Production
Source: Energy Information AdministrationSource: Energy Information Administration
0
1
2
3
4
5
6
7
1990 2000 2010 2020
West CoastWest CoastNortheastNortheast
SouthwestSouthwest
Gulf CoastGulf Coast
Intermountain WestIntermountain West
MidcontinentMidcontinent
Tri
llio
n C
ub
ic F
eet/
Yr.
Tri
llio
n C
ub
ic F
eet/
Yr.
ProjectedProjected
6
Bcf/dBcf/dBcf/dBcf/d
20022002 74.274.220132013 92.892.8
2.02.02.72.7
6.86.88.98.9
4.24.25.75.7
1.91.93.03.0
3.23.24.54.5
15.615.615.815.8
1.91.92.32.3
4.04.04.24.2
0.40.40.50.5
2.62.63.53.5
6.06.07.47.4
1.51.51.71.7
1.21.21.31.3
8.78.710.710.7
4.24.28.18.1MexicoMexico
5.15.16.26.2
WesternWestern CanadaCanada
EasternEastern CanadaCanada MaritimesMaritimes
0.20.20.30.3
3.43.44.44.4
Total*Total*
1.31.31.61.6
North American RegionalNorth American RegionalDemand Growth Demand Growth
Includes lease, plant and pipeline fuelIncludes lease, plant and pipeline fuel *Source: El Paso N.A. Macro Feb 2004*Source: El Paso N.A. Macro Feb 2004
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Bcf/dBcf/dBcf/dBcf/dWestern Western CanadaCanada
U.S. LNGU.S. LNGImportsImports
17.517.518.718.7
0.50.51.61.6
RockiesRockies
5.35.39.59.5
0.60.611.011.0
San JuanSan Juan 3.93.93.23.2
SouthSouthCentralCentral
Mid-Mid-ContinentContinent
6.26.24.74.7
14.014.015.115.1
2002*2002* 75.175.120132013 93.293.2
Total North America*Total North America*
Eastern Eastern CanadaCanada
* Supply does not equal demand due to balancing / storage; estimates
MexicoMexico(incl LNG)(incl LNG)
4.14.18.68.6 Gulf ofGulf of
MexicoMexico
Major Supply ChangesMajor Supply Changes
15.115.114.314.3
Source: El Paso Pipelines N.A. Macro Feb. 2004
3.63.63.23.2
PermianPermian
8
0
1,000
2,000
3,000
4,000
5,000
6,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
-$0.30
$0.20
$0.70
$1.20
$1.70
$2.20
MMcf/d
Northern RockiesNorthern Rockies
Net Export Supply vs. CapacityNet Export Supply vs. Capacity
CIG to Mid-Continent BasisCIG to Mid-Continent Basis
CIG to Topock BasisCIG to Topock Basis
Pipeline Export CapacityPipeline Export Capacity
Net Supply for ExportNet Supply for Export
Capacity SurplusCapacity Surplus
CIG to Mid-Continent BasisCIG to Mid-Continent Basis
CIG to Topock BasisCIG to Topock Basis
Pipeline Export CapacityPipeline Export Capacity
Net Supply for ExportNet Supply for Export
Capacity SurplusCapacity Surplus
Denver
475
900
360
210
400
300
850
330 180
EastEastTrailblazerTrailblazer 850850
KMIKMI 400400
CIG*CIG* 330330
Southern StarSouthern Star 180180
WBIWBI 210210
TotalTotal 1,9701,970WestWestNWP NorthNWP North 475475
NWP SouthNWP South 360360
KernKern 900900
TransColoradoTransColorado 300300
TotalTotal 2,035 2,035
* Excludes capacity from Raton
2003 Northern Rockies Export Capacity2003 Northern Rockies Export CapacityApproximately 4.0 Bcf/dApproximately 4.0 Bcf/d
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10
Rockies Export ExpansionsRockies Export Expansions
CapacityCapacity(MDthd)(MDthd) In-Service DateIn-Service Date
KernKern 906906 May 2003May 2003
NorthwestNorthwest 175175 November 2003November 2003
GrasslandsGrasslands 8080 December 2003December 2003
TransColoradoTransColorado 125125 August 2004August 2004
Cheyenne PlainsCheyenne Plains 560560 January 2005January 2005
Cheyenne Plains Phase IICheyenne Plains Phase II
TotalTotal
170170
2,0162,016
January 2006January 2006
11
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
Powder RiverDenverBig HornWind River
PiceanceUintaGreen RiverOverthrust
2,000MMcf/d
2003 to 2010
1990-2002: Data derived from IHS Energy database2003: Estimate2004-2010: El Paso forecast
MMcf/d
HighPrior 2003 ForecastLow
Northern Rockies Supply ForecastNorthern Rockies Supply Forecast
12
Las Vegas
Denver
Salt Lake City
Greensburg
Cheyenne PlainsCheyenne Plains
WIC Reversal / WIC Reversal / ExtensionExtension
On-Going El Paso Expansion EffortsOn-Going El Paso Expansion Efforts
Medicine BowMedicine BowExpansionExpansion
PiceancePiceance
Raton BasinRaton Basin
Line 1903 ProjectLine 1903 Project
WICWICCIGCIGKern RiverKern RiverNNGNNGNGPLNGPL
ANRANRPEPLPEPLSSCSSCEPNGEPNGExpansionsExpansions
12
13
Cheyenne Plains 36-Inch PipelineCheyenne Plains 36-Inch Pipeline
Phase IPhase I Phase IIPhase II TotalTotal
Compression (HP)Compression (HP) 20,60020,600 10,30010,300 30,90030,900
Capacity (MDthd)Capacity (MDthd) 560560 170170 730730
FERC FilingFERC Filing May 20, 2003May 20, 2003 May 25, 2004May 25, 2004
In-Service DateIn-Service Date January 2005January 2005 January 2006January 2006
Ultimate CapacityUltimate Capacity 1,700 MDthd1,700 MDthd
Receipt PointsReceipt Points Delivery PointsDelivery Points
CIG and WICCIG and WIC ANR, PEPL, NGPL, NNG, ANR, PEPL, NGPL, NNG, KGS, KMI, SSKGS, KMI, SS
14
Thoughts for the FutureThoughts for the Future
Gas is ValuableGas is Valuable· ·
Capacity is CheapCapacity is Cheap
· ·
Connectivity is Connectivity is PricelessPriceless