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Page 1: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

1

Southern Natural Gas

Winter Review

May 2019

Page 2: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

2

Agenda

• Operations Review

• Summer Maintenance Update

• Scheduling Review & Dart Updates

• Open Discussion

Page 3: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

3

Operations Review

Page 4: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

4

Gas Control Organizational Structure

Page 5: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

5

Gas Control Organizational Structure

Page 6: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

6

Gas Control Organizational Structure

Page 7: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

7

Winter Review • SNG’s facilities performed well during this winter

– Compressor stations staffed 24x7 as needed

– Horsepower reliability

• Overall average winter with milder temperatures

• Storage assets were heavily utilized. Extended customer withdrawals through March

• Peak Day – January 30, 2019

– Peak Day Throughput: 4,105,000

Page 8: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

8

Average Daily Deliveries (Nov – Mar)

1,338 1,228

1,428 1,306

1,049 1,222

1,326 1,375 1,156 1,097

1,330 1,358

228 403

420 509

800

914 716

951

921 957

952 882

203 194

222 240 256

245 231

238

229 205

202 208

479 305

378 381 298

286 312

292

310 448

579 582

2,248 2,130

2,448 2,436 2,403

2,667 2,585

2,856

2,616 2,707

3,063 3,030

-250

250

750

1,250

1,750

2,250

2,750

3,250

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Md

th/d

LDC Power Industrial Interconnects

Page 9: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

9

Winter Heating Degree Days (HDDs*) 2013-2019

November December January February March

2014/15 448 479 646 671 230

2015/16 253 267 665 456 157

2016/17 212 451 361 236 247

2017/18 293 548 732 204 334

2018/19 410 524 597 332 306

30 Year Average 326 538 596 455 286

0

100

200

300

400

500

600

700

800Polar Vortex

*HDD = 65 Degrees Minus System Mean Temperature

HD

Ds

Page 10: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

10

Winter Average Daily Power Demand

Md

th/d

0

200

400

600

800

1,000

1,200

Nov Dec Jan Feb Mar

2014/15 2015/16 2016/17 2017/18 2018/19

Page 11: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

11

Winter Average Daily LDC Demand

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Nov Dec Jan Feb Mar

2014/15 2015/16 2016/17 2017/18 2018/19

Md

th/d

Page 12: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

12

Average January Daily Deliveries 2011-2019

1,660

1,236 1,248

1,722 1,603 1,595

1,211

1,768 1,637

612

820 811

793 957 933

862

1,029

867

392

303 294

329 327 354

538

612

574 247

262 248

228 242 217

203

187

214 2,911 2,621

2,601

3,072 3,129 3,099

2,814

3,596

3,292

0

100

200

300

400

500

600

700

800

900

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2011 2012 2013 2014 2015 2016 2017 2018 2019

HD

Ds M

dth

/d

LDC Power Interconnects Industrial HDDs

Page 13: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

13

Average Daily Deliveries* (Nov- March)(MDth/d)

2019 Nov-

Mar

2018 Nov-

Mar % Change

LDC 1,358 1,330 2.1%

Power 882 952 -7.3%

Industrial 208 202 2.8%

Interconnects 582 579 0.5%

TOTAL 3,030 3,063 -1.1%

*EXCLUDES DELIVERIES INTO STORAGE

Page 14: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

14

Customer Storage Inventory Levels

Page 15: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

15

Summer Maintenance

Page 16: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

16

Maintenance Planning Process Typical Types of Maintenance Work

Compressors: • ESD and safety tests • Emission tests • Run-hour inspections &

maintenance to insure reliability

• Various engine/compressor repairs

Integrity Management: • Various pig runs (ILI) • Remediation of

anomalies • Hydrotests • Selected wrinkle bend

replacements

3rd Party Needs: • Class location changes • Line relocations • Expansion projects Storage Field: Shut-in tests & maintenance – spring & fall

• Gas Control models impact to capacity and compares to expected flow to determine best outage windows

• Goal is to avoid impact to firm service or coordinate with impacted customers to manage the impact

• Plan may be adjusted for unscheduled outages, multiple outages, availability of equipment and contractors, and weather

Page 17: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

17

2019 Maintenance

Monthly Outage Call

• 3rd Wednesday of the month at 1:30 pm CST

Overview # of jobsSystem total 714

Posted 91Posted(with possible impact) 63Posted(no impact expected

but risks could develop) 28

South Main lines 11North Main lines 16Other lines 41

Page 18: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

18

Maintenance • Ongoing -

Fairburn Unit 1 = Limited to 210Mdth/d

South Section 28 Force Majeure RTS to be determined

• Upcoming -

North Main Line Segment 110 McConnells 4/24 – 5/1 = 223 Mdth/d

East Gadsden Line Hydro testing 6/24 – 7/15 = Line out of service

Ocmulgee Compressor Station unit maintenance 6/1 – 10/31 = 72 Mdth/d

Enterprise Compressor Station unit maintenance 9/2 – 9/27 = 177 Mdth/d

• Completed -

Muldon and Bear Creek Spring Test are complete

Page 19: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

19

SNG North System Maint. Review Remainder of Year

LA

MS

AL

GA

Logansport

Bienville

Bear Creek Storage

Onward

Pickens

Rankin

Louisville

Muldon Storage

Reform

McConnells

Providence

Tarrant Pell City

DeArmanville

Bell Mills

Rome

Compressor Station

Storage Field

Huntsville

Chattanooga

Atlanta

Southern will be conducting other general maintenance during this period

AL

Pigging 14” Logansport line last half of year, dates TBD

Bear Creek Shut-in test 10-15-19 to 9 AM 10-22-19

DIQ and DWQ allocated 64%

Muldon Shut-in test 10-1-19 to 10-7-19

DIQ and DWQ allocated 36%

Pigging NMLL (37081)

8-27-19 & 8-29-19

Pigging 2ndNML(37000) 7-22-19,

7-23-19, and 7-25-19.

Pigging Bessemer Calera loop line(37079) last half of year,

dates TBD

Pigging Logansport loop line last half of year, dates TBD

Pigging Montgomery

Columbus line(37012) last half of the year , dates TBD.

Maint. At Logansport and

Bienville in the fall, date TBD

Remediation on Gwinville

Pickens loop line last half of year, dates TBD. Seg. 400

capacity of 234 Mdth/d reduced up to 67 Mdth/d

Pigging NMLL(37017)

8-20-19, 8-21-19, 8-23-19, and 8-26-19..

Hydro-Test on Bessemer Calera line(37025) 8-5-19 to 8-19-19

Page 20: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

20

SNG South System Maint. Review Remainder of Year

MS

AL

GA

Enterprise

Gwinville

Selma

Auburn

Ellerslie

Thomaston

Ocmulgee

Hallgate

Wrens

Elmore

York

Gallion

Bay Springs

Compressor Station

Storage Field

LNG

Atlanta

Elba

Hartwell

Aiken

Holy Trinity

Albany

Pavo

Brookman

Riceboro

Southern will be conducting other general maintenance during this period

Pigging SM3rdLL(37077) East of Enterprise 8-13-19 & 8-15-19

Pigging SMLL(37080) east of Gallion 7-8-19, 7-9-19,

& 7-11-19

Pigging Graniteville Expansion line(37006)

7-16-19 & 7-18-19

Pigging SM2ndLL(37019) East of Ocmulgee

7-23-19, 7-24-19, & 7-25-19

Pigging Gwinville Pickens loop line(37049)

7-22-19 to 8-2-19

Pigging Montgomery #2 line(37085)

3rd Qtr. Dates TBD

Unit Maint. At Enterprise 9-2-19 to 9-27-19. Seg. 430 capacity of 2,283

Mdth/d reduced up to 177 Mdth/d

IT & OOP could be impacted

Remediation on the Douglas line 37(37007) September, dates TBD

P/L maintenance on Main line 01(37518)-October,

dates TBD Sta. Maint. At Gwinville

October timeframe Dates TBD Seg. 410

capacity of 1,658 Mdth/d reduced up to 270 Mdth/d

IT & OOP could be impacted

Remediation on the Marietta Branch line

Last half of year, dates TBD

Page 21: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

21

SNG South Louisiana System Maint. Review Remainder of Year

Page 22: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

22

New Outage Impact Report

Page 23: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

23

Scheduling Review & Dart Updates

Page 24: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

24

Eastern Region TSS Management Team

Gina Mabry

Director-Scheduling

Transportation/Storage Services

Houston Headquarters

Katie Cornutt

Manager-Scheduling

Transportation/Storage Services

Houston Headquarters

Adam Harris

Manager-Scheduling

Transportation/Storage Services

Houston Headquarters

Cathy Soape

Manager-Scheduling

Transportation/Storage Services

Houston Headquarters

Page 25: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

25

SNG Winter 2018/2019 Segment Constraints (November-March)

Segment Location Days Impacted

30 ONWARD 26

90 DUNCANVILLE LATERAL 70

130 TARRANT To PELL CITY 8

150 CHAT LINE ROME TO WHITFIELD 9

160 ATLANTA NORTH 5

180 Chat Line Rome To Whitfield Ct 9

380/SESH Lateral SNG-SESH LATERAL 82

400 PICKENS TO GWINVILLE 28

430 ENTERPRISE TO ZONE 1/2 BNDARY 7

490 ELLERSLIE 15

Page 26: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

26

Winter Restrictions Percentage Days Restricted

(November - March)

Restriction Point Highly Utilized SNG Paths

Percentage Days Restricted (November - March)

Percentage Days Restricted (November - March)

Percentage Days Restricted (November - March)

2016/2017 2017/2018 2018/2019

Segment 30 0.00% 18.54% 17.22%

Segment 90/Duncanville Lateral N/A N/A 46.35%

Segment 130 0.00% 0.00% 5.30%

Segment 150 0.00% 0.00% 5.96%

Segment 180 0.00% 0.00% 5.96%

Segment 380/SESH Lateral 4.64% 1.32% 54.31%

Segment 400 0.00% 19.21% 18.54%

Segment 490 7.95% 14.57% 9.93%

American Midstream Duncanville 1.99% 21.19% 22.52%

Columbia Gulf 0.66% 13.91% 10.60%

East Tenn Whitfield 0.00% 0.00% 9.27%

Thomson/SNG Jefferson 0.00% 7.28% 5.30%

AGL/SNG Thomaston 0.00% 1.32% 5.30%

Page 27: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

27

SNG Pathing for Fairburn • Transco Fairburn Pin 50069 is the only receipt pin on the Fairburn

Lateral and will primarily flow south

– Default Route is from Seg 510 to the South Mainline and then east or west (and up Seg 400 to the North Mainline)

• An exception route for a limited quantity has also been set up to allow nominations from the Transco-Fairburn interconnect from Seg 510 to the North Mainline via Seg 160 and ending at Seg 80

Page 28: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

28

Petal Nomination Changes • Effective May 1, 2019, Southern will be utilizing two pins for

nominations at the Petal Storage Interconnect:

– 606200 – Gulf South/SNG Petal Clarke Receipt – will be utilized for Receipt (Withdrawal) nominations

– 606210- Gulf South/SNG Petal Clarke Delivery-will be utilized for Delivery (Injection) nominations

Page 29: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

29

Proposed Segment Name Changes

• Changes expected to be implemented in the 3rd Quarter of 2019

Page 30: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

30

Type 3 OFO Factors • Type 3 Operational Flow Orders (OFOs) are implemented when

demand in an area of the system is forecasted to exceed capacity

– OFOs are used to protect primary firm services

– System conditions dictate the level of interruptible reductions and OFOs

needed

• Factors SNG considers when evaluating whether Type 3 OFO penalties need to be implemented: – Weather Forecast – system means in the mid-40’s and mid-80’s are where demand starts

to approach capacity

– Day of week – weekday demand exceeds weekend/holiday demand

– Expected duration of heavy demand

– Recent history

– Nominated deliveries

– Actual takes from the system higher than entitlements

Page 31: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

31

Protecting System Integrity • SNG’s objective is to provide reliable service and protect our

firm commitments

• SNG’s Type 3 OFO

– For daily quantities taken in excess of the Shipper’s Daily Entitlement plus a stated tolerance

– Penalties are assessed only after a variety of group, shipper, and agent checks

– The current penalty as of December 2018 now includes the price of gas as a component

• Level 1 - $10

• Level 2 - $15 + Highest Regional Daily Price

• Level 3 - $25 + 2x Highest Regional Daily Price

Page 32: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

32

Type 3 OFO Winter Count* (November- March)

2016/17 2017/18

2018/19

Type 3 Level 1 7 2 25

Type 3 Level 2 12 36 10

Type 3 Level 3 0 0 0

Total 19 38 35

* Number of days OFO was in effect for any group(s) on the system

Page 33: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

33

DSR Scheduling Contacts Phone Email Ice Chat Handle

Gina Mabry, Director Transportation

and Storage Services (713) 420-3685 [email protected]

Katie Cornutt, DSR Manager (713) 420-5648 [email protected]

Walker Agnew (713) 420-6059 [email protected] Wagnew

Krysta Henry (713) 420-3023 [email protected] Khenry4

Adam Ivy (713) 369-8922 [email protected] AIvy

Tracy Minter (713) 420-7030 [email protected] Tminter

Carol Whatley (713) 420-3889 [email protected] CWhatley

SNG Hotline

(713) 420-7213 [email protected]

Page 34: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

34

WEARS Scheduling Contacts Cathy Soape, WEAR Manager (713) 420-3814 [email protected] Ice Chat Handle

Mandey Allen (713) 369-9369 [email protected] Mallen11

Virginia (Ginger) Bryan (713) 420-6135 [email protected] Gbryan5

Todd Davis (205) 325-7440 [email protected] Tdavis23

Charlotte Hawkins (713) 420-4873 [email protected] Chawkins4

Nicole Lang (713) 420-5992 [email protected] Nlang

Phyllis Miller (713) 420-3738 [email protected] Pmiller7

Ahsan Mohammad (713) 420-5644 [email protected] Amohammad

Jill Overman (713) 420-3450 [email protected] Joverman

Jeremy Rainwater (713) 420-6385 [email protected] Jrainwater

David (Scott) Sokira (205) 325-7313 [email protected] Ssokira

Debra (Debbie) Tweedy (713) 420-5289 [email protected] Dtweedy

Norma Villarreal (713) 420-3924 [email protected] Nvillarreal

Page 35: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

35

Contract Administration Contacts:

Sherry Noack, Manager

(713) 420-3764 [email protected]

Shari Jones (713) 420-3710 [email protected]

Marquette Williams (713) 369-9336 [email protected]

Natarsua Player (713) 369-9871 [email protected]

Lindsay Sanford

(713)420-2382 [email protected]

SNG Contract Administration Hotline

(713) 420-4455

SNG Contracts Contacts

Page 36: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

36

Commercial Contacts

Carl Haga, VP, Commercial

(205) 325-7544 [email protected]

Darryl Outlaw, Director, Commercial (205) 325-7421 [email protected]

Walter Coe (205) 325-3708 [email protected]

Lisa Guthrie (205) 325-3816 [email protected]

Jerry Nelson (205) 325-7257 [email protected]

On call Account Manager

(800) 315-0575

SNG Commercial Contacts

Page 37: Southern Natural Gas Winter Review - Kinder Morgan · Nov Dec Jan Feb Mar 2014/15 2015/16 2016/17 2017/18 2018/19. 11 Winter Average Daily LDC Demand 0 200 400 600 800 1,000 1,200

37

SNG Gas Control Contacts

Gas Control Contacts:

Maurice (Reese) Hart III, Manager

(713) 420-4774 [email protected]

Kal Dankovich, Outage Coordinator (713) 420-7522 [email protected]

Jimmy Reese, Lead Controller (713) 420-7310 [email protected]

Daniel Mitchell, Lead Controller (713) 420-5874 [email protected]