tennessee gas pipeline shipper meeting october 1st 3 , 2014 · – increased deliveries to pipeline...
TRANSCRIPT
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Tennessee Gas Pipeline
Shipper Meeting
October 1st – 3rd , 2014
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Forward-Looking Statements / Non-GAAP Financial Measures
• This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not
relate strictly to historical or current facts. In particular, statements, express or implied, concerning future actions, conditions or events,
future operating results or the ability to generate revenues, income or cash flow or to make distributions or pay dividends are forward-
looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions.
Future actions, conditions or events and future results of operations of Kinder Morgan Energy Partners, L.P., Kinder Morgan
Management, LLC, El Paso Pipeline Partners, L.P., and Kinder Morgan, Inc. may differ materially from those expressed in these forward-
looking statements. Many of the factors that will determine these results are beyond Kinder Morgan's ability to control or predict. These
statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others, the
ability to achieve synergies and revenue growth; national, international, regional and local economic, competitive and regulatory
conditions and developments; technological developments; capital and credit markets conditions; inflation rates; interest rates; the political
and economic stability of oil producing nations; energy markets; weather conditions; environmental conditions; business and regulatory or
legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural products; the timing and success of
business development efforts; terrorism; and other uncertainties. There is no assurance that any of the actions, events or results of the
forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition.
Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking statement. Please read "Risk
Factors" and "Information Regarding Forward-Looking Statements" in our most recent Annual Reports on Form 10-K and our
subsequently filed Exchange Act reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website at
www.kindermorgan.com.
• We use non-generally accepted accounting principles (“non-GAAP”) financial measures in this presentation. Our reconciliation of non-
GAAP financial measures to comparable GAAP measures can be found in the appendix to this presentation and on our website at
www.kindermorgan.com. These non-GAAP measures should not be considered an alternative to GAAP financial measures.
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Agenda
Thursday, October 2nd , 2014
8:45 a.m. Welcome Sital Mody
8:55 a.m. Pipeline Operations Update Ray Miller
9:30 a.m. Macro Overview and TGP changes Ernesto Ochoa
9:50 a.m. Break
10:00 a.m. Business Development Projects Preston Troutman
10:30 a.m. AccuWeather Winter Forecast 2014/2015 Bob Smerbeck
11:20 a.m. Closing Remarks and Q&A TGP Team
11:45 a.m. Lunch Hill Country Dinning Room
1:00 p.m. Afternoon Activities (As Selected)
6:30 p.m. Social and Dinner Governors Ballroom
7:00 p.m. Dinner Governors Ballroom
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Pipeline Operations Update
Ray Miller
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Agenda
• TGP System Overview
• Winter 2013 / 2014 Summary
• Summer Review
• Maintenance
• 2014 Expansion Projects
• Winter 2014 / 2015 Preview
• DART / Scheduling Update
• Gas & Electric Harmonization
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TGP Facility Map
Compressor Stations
Storage Fields St 527
St 823
Carthage
Bear Creek Storage
St 1
St 860
St 87
St 200
St 219
Niagara Spur
St 313
St 237 St 261
St 40
Lost Creek Storage
Colden Storage
Ellisburg Storage
Harrison Storage
Hebron Storage
St 47
St 245
H-C Line
St 315
St 321
Donna Line St 409
St 209
St 110
St 106 Broad Run
• Miles of pipe 12,000 miles
• Flow Meters 800
•Storage Capacity 92.1 BCF
• Mainline Linepack 12.5 BCF
•Winter Peak Day Delivery 10.2 BCF
Approximate values
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Cold New England Weather
200
400
600
800
1000
1200
1400
Nov Dec Jan Feb Mar
HD
Ds
Winter 2013/14
Winter 2012/13
Winter 2011/12
30 Year Average
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2013/2014 Winter Overview
• Peak, total system deliveries on Jan 6 of 10.2 BCF • Winter system deliveries increased by about 4.5% over previous winter
– Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area
• Consistently moved .9 Bcf/d southbound from Pa. through station 219
– .6 Bcf/d southbound through station 200 from Oh. (currently ~1.2 Bcf/d)
• Storage cycled to low storage inventory late season – Colden, Ellisburg, and Harrison in the market on power withdrawal – Bear Creek in the field also on power withdrawal
• High utilization of compressor stations from Nov through Mar
– Emphasis was on maintaining high level of reliability – Station 254 outage impact
• More scheduling constraints due to high utilization – Path and point restrictions to firm services – Reduced flexibility for all shippers, particulary in zones 4,5 and 6
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Difficult Operations at Times
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Winter Total System Deliveries
2011-2012 2012-2013 2013-2014 % Change
LDC 1,565 1,830 1,986 +8.5%
Power 1,388 1,130 1,064 -5.8%
Interconnects 3,202 3,924 4,688 +20%
Other 491 572 62 -90%
TOTAL 6,646 7,455 7,799 +4.5%
• All volumes are MDth/d
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Winter New England Deliveries
2011-2012 2012-2013 2013-2014 % Change
LDC 1,082 1,324 1,427 +7.8%
Power 463 346 267 -23%
Interconnects 346 468 1,280 +173%
TOTAL 1,889 2,137 2,974 +39%
• All volumes are MDth/d
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• All volumes are MDth/d
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 2012 2013 2014 YTD
Winter New England LDC Deliveries
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13 Winter Period (Nov – Mar) Average Dth/d
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
08-09 09-10 10-11 11-12 12-13 13-14
Utica
Marcellus
Rex
Dracut
Distrigas
Wright
Shelton
Niagara
Winter New England Supply Analysis
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Winter Days - (%) Restricted
Restriction Point Highly Utilized TGP Paths
Percentage Days Restricted (November - March)
2013/2014
Sta. 200 77.48%
Sta. 245 100%
Sta. 261 32.45%
Sta. 307 BH 56.29%
Sta. 315 BH 93.38%
Sta. 321 96.68%
MLV 336 80.79%
MLV 355 BH 58.94%
Sta. 1 BH 52.32%
Mahwah 56.29%
Rivervale 82.11%
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Winter System Exports
0
100
200
300
400
500
600
700
800
900
1,000
2011 2012 2013 2014 YTD
Canada
Mexico
+80% -2%
+15%
• All volumes are MDth/d
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2014 Summer Overview
• System Demand is basically flat to the previous summer • Market Deliveries increase driven by Pipeline Interconnects
– Exports remain strong to Mexico and Canada
• System Power Plant demand is slightly lower than previous summer • Market Area Supply continues to increase
– Driven by increase in Utica and Marcellus Supply
• 200 line southbound volumes through Ohio remain at max available capacity
– Currently in the 1.1 – 1.2 Bcf/d Range
• 500 line southbound volumes through Sta 860(TN) have increased significantly – Currently in the 700 – 750 mmscf/d range (last year in the 150-200 mmscf/d range)
• South Texas Supply remains strong
• Firm Storage Service (FSS) continues to track below average
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Summer Total System Deliveries
2012 2013 2014 % Change
LDC 840 881 831 -5.6%
Power 1,736 1,353 1,276 -5.6%
Interconnects 3,214 3,558 4,301 +21%
Other 450 540 56 -90%
TOTAL 6,240 6,332 6,464 +2%
• All volumes are MDth/d
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Summer New England Deliveries
2012 2013 2014 % Change
LDC 531 571 556 -2.6%
Power 565 542 478 -12%
Interconnects 388 393 1,217 +210%
TOTAL 1,484 1,506 2,251 +50%
• All volumes are MDth/d
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Summer Total System Power Deliveries
• All volumes are MDth/d
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2008 2009 2010 2011 2012 2013 2014
Zone 6
Zone 5
Zone 4
Zone 2
Zone 1
Zone 0
+2.5%
+25%
+7.5%
+21.5%
-22%
-5.6%
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Summer New England Supply Analysis
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2009 2010 2011 2012 2013 2014
Dracut
Distrigas
Shelton
Wright
Niagara
Marcellus
Utica
Rex
• All volumes are MDth/d
+99%
+54%
+12% +1%
+46%
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Summer Days - (%) Restricted
Restriction Point Highly Utilized TGP Paths
Percentage Days Restricted (April –
October)
2014 (Apr- Sept)
Sta. 1 BH 70.62%
Sta. 200 68.93%
Sta. 245 98.31%
Sta. 307 BH 84.75%
MLV 314 BH 33.33%
Sta. 315 BH 99.44%
Sta. 321 89.27%
MLV 355 35.02%
Mahwah 96.61%
Rivervale 22.60%
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0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
BC
F
2000-2001
2002-2003
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
5 Year Average 2008-2013
2013-2014
443 Bcf < 2013; 463 Bcf < 5 Yr. Avg.
National Storage Activity As of 9-5-2014
2.801 Current Inventory
3.3 – 3.5 Projection
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National Storage Activity As of 9-5-2014
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
BCF
2013-2014 Winter Seasonal Record
Withdrawal 3.01 Tcf 1.97 Injected to date
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Outage Planning Process
Gas Control – Planning
Group - Generates annual outage
schedule - Meet with all stakeholders - Maintains and modifies
master outage schedule - EBB Postings - Monthly Customer Webex
Field Operations Outages
- Scheduled Equipment and Pipeline Maintenance: Overhauls, Inspection, Repairs
- Emergent Issues: Equipment repairs, pipeline repairs
- Program Items: Engineering – Pipeline pigging and ILI, Equipment upgrades, etc.
Project Management Outages
- New equipment and facility installations
- Pipeline class changes and strength testing
- New pipeline installations
Master Annual Outage
Schedule - Updated based on Field
Operations and Project Management feedback
- Continuous Cycle
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Hydrotest Work
Clearing and Grubbing
Pipe Replacement Test Heads
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2014 Maintenance – Zone 0 (October – EOY)
Unit Maintenance Sta. 409A (10/20/2014 - 10/24/2014)
Capacity of 340,000 reduced to 180,000
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2014 Maintenance – Zone 1 (October – EOY)
Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)
(M)(tentative dates)
Bi-Directional Station Work Station 860 (8/18/2014 - 12/19/2014)
Capacity of 650,000 reduced to 0 (seg. 847) Capacity of 996,000 reduced to 775,000 (seg. 548)
Class Change MLV 546-1 (8/19/2014 - 10/9/2014)
Pipe Replacement MLV 545-1 (11/1/2014 – 12/31/2014)
Bi-Directional Station Work Station 546 (7/2/2014 – 10/14/2014) Station 550 (9/5/2014 - 11/7/2014)
Station 542 (10/15/2014 - 11/12/2014) Capacity of 940,000 reduced to 700,000
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2014 Maintenance – Zone 2 (October – EOY)
Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)
(M)(tentative dates)
Bi-Directional Station Work Sta. 200 (8/4/2014 - 1/31/2015)
Anomaly Remediation MLV 110-2 to 114-2
(9/15/2014 - 10/6/2014) (10/1 – 10/5) (M)
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2014 Maintenance – Zone 4 (October – EOY)
Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)
(M)(tentative dates)
Hydrotest MLV 313-1 (8/28/2014 - 10/31/2014)
Capacity of 1,609,000 reduced to 1,585,000
Class Change MLV 324-1A (9/22/2014 - 10/15/2014)
Capacity of 1,719,000 reduced to 1,579,000 MLV 322-1 (10/15/2014 - 11/1/2014) (M)
Capacity of 1,719,000 reduced to 1,619,000
Station Maintenance Sta. 317 (10/20/2014 - 10/21/2014)
Capacity of 1,609,000 reduced to 1,559,000 Sta. 319 (10/22/2014 - 10/23/2014)
Capacity of 1,609,000 reduced to 1,559,000 Sta. 315 (10/27/2014 - 10/31/2014)
Capacity of 1,609,000 reduced to 1,425,000
Anomaly Remediation Various valve sections from Sta. 200 to Sta. 219,
Lines 1, 2, and 3 (4/28/2014 - 11/15/2014)
MLV 214-1 (9/22/2014 – 10/14/2014) (M)
Station Maintenance Sta. 214 (9/22/2014 – 10/14/2014)
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2014 Maintenance – Zone 5 (October – EOY)
Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)
(M)(tentative dates)
Station Maintenance/ESD Sta. 230C (10/20/2014 - 10/31/2014) (M)
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2014 Maintenance – Zone 6 (October – EOY)
Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)
(M)(tentative dates)
Drip Removal MLV 261-1A & 2A
Line 1 (10/7/2014 – 10/10/2014) Capacity of 1,090,000 reduced to 665,000
Station Maintenance Sta. 260A (10/8/2014 – 10/8/2014)
Sta. 264 (10/13/2014 – 10/17/2014) Sta. 265E (10/20/2014 – 11/5/2014)
Unit Maintenance Sta. 261 (10/1/2014 – 10/3/2014) Sta. 266 (10/8/2014 – 10/8/2014)
Sta. 266 (10/15/2014 – 10/16/2014) Sta. 266 (11/11/2014 – 11/12/2014)
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Integrity Prove Up Dig - Ohio
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Integrity Management In Line Inspection (ILI) and Pressure Tests
0
500
1000
1500
2000
2500
2012 2013 2014
ILI Projects - Miles
Miles With HCAs Miles Without HCAs
0
20
40
60
80
100
120
2012 2013 2014
Pressure Test Projects - Miles
Miles With HCAs Miles Without HCAs
• 352 projects completed through Sept 22
• Approximately 110 projects to complete by YE
• More added if unplanned outages occur
• 12 month running maintenance reminder on TGP EBB
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Rose Lake Project - Station 317
Electric motor driven compressor with reversible operation
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Rose Lake Project - Station 315
View of Coolers and Filter Separators
View looking South between Compressor Buildings
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Operational Expectations
• Continued near full utilization of capacity both East and West from Marcellus and Utica
• Continued high utilization of 500 line southbound
• Increasing Eagleford volumes coming out of South Texas
• Exports to Mexico continue to increase
• High demand expected from the North to serve markets on the 500 line
• Exports to Canada will continue and possibly increase
• Maintenance scheduling on 100, 200, 300, 500, 800 lines may necessitate interruption
• Gas quality management will be focused on new supply sources as they come into the system
• Coincidental peak power and gas day may occur, TGP may be scheduling down to SIP at constraints and also managing non-ratable takes
• Storage may be limited to firm services during peak periods
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Station 200 Reversal
Compressor Yard Work
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TGP DART UPDATE
• Implementation – October 1, 2013 • Recent changes completed
⁻ Imbalance windows ⁻ Multi – Level SIP ⁻ Sequential Meter List
• PAL Enhancements – target Dec 2014 • THANK-YOU!
New Path Scheduling Priority – Effective June 17, 2014 – PIP nominations – from primary receipt points to primary delivery points remains highest priority – Elevated SIP1 nominations – from secondary receipt points to primary delivery points, highest SIP
priority displayed as “SIPsp” – Elevated SIP2 nominations – from primary receipt points to secondary delivery points displayed as
“SIPps – Other SIP3 nominations – from secondary receipt points to secondary delivery points displayed as
“SIPss”
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Gas/Electric Harmonization
• TGP and KM participating with NAESB, INGAA and other industry groups • “Scheduling NOPR” - Notice of Proposed Rulemaking on the Coordination
of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities (Docket No. RM14-2)
• Order Initiating Investigation into ISO and RTO Scheduling Practices and Establishing Paper Hearing Procedures, California ISO, et al. (Docket No. EL14-22 et. al.)
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FERC Scheduling NOPR
• FERC’s Goal: Change regulations for the scheduling of transportation services on interstate
natural gas pipelines to better coordinate the scheduling practices of the gas and electric industries and to provide scheduling flexibility to all shippers
• NOPR highlights:
• Start Gas Day at 4:00 a.m. CCT • Move the Timely nomination deadline to 1:00 pm CCT • Increase the number of intra-day nomination cycles from 2 cycles to 4 cycles • Require all interstate pipelines to offer multi-party service agreements for firm service
• Timeline:
• Sept 29th – NAESB to file changes to standards based on industry consensus • Oct 31st – NAESB to file version 3.0 • Nov 28th – Scheduling NOPR comments due • Final Order on Scheduling NOPR • After Final Order – NAESB will have 90 days to file changes to standards
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NAESB Process To Date
• Series of four, 2-day, Gas Electric Harmonization meetings (GEH) (April 21- June 3)
• 220 - 300 individuals attended each session from both Gas and Electric industries • 13 different presentations from industry representatives with much discussion • 56 Non-binding straw votes held to get a “sense of the room” • “Super Majority” voting on strawman packages – no “official” consensus
• Gas Day start - Disagreement as to 4 am versus 9 am start • Scheduling cycles – general agreement on 3 intraday cycles and timelines
• NAESB Board of Directors on June 4th approved standards development to:
• Match the cycle timelines of the GEH • Remain “neutral” on Gas Day start • Change any corresponding standards – mainly Capacity Release
• NAESB filed report of progress to FERC on June 18th
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NAESB Process Upcoming
• Prepare and file NAESB standards filing with FERC – September 29, 2014
• Approximately 80 standards will be changed by the Wholesale Gas Quadrant • Member ratification needed
• NAESB 3.0 standards to be filed with FERC – October 31, 2014
• When filed will include GEH and Version 2.1 filings
• Wait for new NOPR or Order from FERC to adjust standards – 1Q/2Q 2015 earliest • Order on GEH
• Gas Day “neutral” will need updating • File within 90 Days
• New NOPR, Version 3.0
• Implementation – 4Q 2015 earliest
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Tennessee Gas Pipeline 24 Hour Contact List
Gas Control 24 hour and emergency
800-231-2800
Ganesh Venkateshan – Mgr. 713-420-2099 Cell –205-746-5752 Layne Sanders – Director 713-420-5024 Cell – 832-563-5024 Danny Ivy - VP 713-369-9311 Cell – 713-829-2761 Ray Miller – VP 713-369-9330 Cell – 713-206-8338
Transport and Storage Services 24 hour Scheduling Hotline 713-369-9683 Cathy Soape – Manager 713-420-3814 Cell – 713-922-5083 Marquette Williams – Manager 713-369-9336 Cell – 713-819-2555 Sherri Glazebrook – Director 713-420-3677 Cell – 281-678-1183 Gene Nowak – VP 713-369-9329 Cell – 713-252-9759
Commercial/Marketing Ernesto Ochoa – Director 713-420-1734 Cell – 281-414-3823 Sital Mody – VP 713-420-7336 Cell – 832-643-0042 Norman Holmes - VP 713-420-4442 Cell – 205-901-0456 Kim Watson – President 713-369-3229 Cell – 713-204-5423
Field Operations Ron Bessette– Director (Northeast) 860-763-6027 Cell – 985-209-4478 John Pannel – Director (Central) 615-221-1511 Cell – 615-714-1930 Cy Harper – Director (South) 281-689-4534 Cell – 205-613-6701 Tom Dender – VP 205-325-3883 Cell – 7205-572-1549 Gary Buchler - VP 713-369-8463 Cell – 713-824-3904
Colorado Springs, CO Office 713-420-2600 Two North Nevada Ave Colorado Springs, Co 80903
Birmingham, AL Office 713-420-2600 569 Brookwood Village St Birmingham, AL 35209
Downers Grove, IL Office 630-725-3000 3250 Lacey Rd Suite 700 Downers Grove, IL 60515
Houston, TX Office 713-369-9000 1001 Louisiana St Houston TX 77002
Sept 2014
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Macro Overview and TGP Changes
Ernesto Ochoa
The Macro View
Dramatic supply growth
Unconventional production: Marcellus, Utica, Eagle Ford
Growing long-term demand Economy Electricity / Industrial Gas
Changing trade balance Exports: Canada , LNG; Mexico
Infrastructure impetus New sources New plumbing New “last mile” infrastructure
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Supply
Gas Demand
48 Source: KM Aug, 2014 Macro Forecast
CANADA DEMAND Western Canada Oil Sands Eastern Canada Coal Generation Retirements All Canada: GHG Coal Replacement Policy
+2.2
CANADA SUPPLY WCSB Conventional Unconventional
+3.1
U.S. LNG EXPORTS +9.1
MEXICO IMPORT DEMAND Powergen and Industrial Growth Oil Conversion
+2.5
B.C. LNG EXPORTS +2.7
13.4 Bcf/d
Net Imports from Canada
LNG Exports
(2013–2023)
Changes Beyond Border
Linking the best markets to the best supply basins
Tennessee Gas Pipeline
Marcellus Shale Gas
Utica Shale Gas
LNG
Export
Canada
Southeast
New
England
EagleFord Shale Gas
Haynesville Shale Gas
Mexico
System Overview
13,900 miles of pipeline
~8 Bcf/d – design capacity
>500 FT customers
1.4 Million Horsepower
Long-term Growth Drivers
Demand growth across
system
Abundant & Growing Supply
— Eagle Ford, Haynesville,
Fayetteville, Barnett,
Marcellus & Utica
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Marcellus and Utica Shale Production
(Bcf/d)
SOURCE: Wood Mackenzie Long Term View, May 2014
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
202
0
202
1
202
2
202
3
202
4
202
5
Marcellus Northeast Marcellus Southwest Ohio Utica
Winter Period (Nov – Mar) Average Dth/d
Market Area Supply
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
08-09 09-10 10-11 11-12 12-13 13-14
Utica
Marcellus
Rex
Dracut
Distrigas
Wright
Shelton
Niagara
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TGP Demand – System Wide
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 2012 2013 2014 YTD
• All volumes are MDth/d
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0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2010 2011 2012 2013 2014*
Z6
Z5
Z4
Z3
Z2
Z1
ZL
Z0
TGP Increasing Annual Throughput
*2014 through August
MD
th/d
System Flows - 2007
54
800 Line
500 Line
200 Line
300 Line
100 Line
200 Line
Traditional Long-haul Pipe
• South to north flow
• Limited market area supply
• High middle-system utilization
• ~1.8 MMDth/d at Sta 87
Sta 87
System Flows – 2010-2011
55
800 Line
500 Line
200 Line
300 Line
100 Line
200 Line
Bifurcated Pipe
• Marcellus~1.6 MMDth/d
• Rex flowing in Ohio
• Low middle-system utilization
• ~500 MDth/d at Sta 87
Sta 87
System Flows – 2014
56
800 Line
500 Line
200 Line
300 Line
100 Line
200 Line
Long Haul Once Again
• Marcellus ~3.5 MMDth/d
• Utica ~600 MDth/d
• Increased Middle System
utilization (in reverse)
• ~1 MMDth/d South flow at Sta 87
Sta 87
System Flows – 2016, 2017, Beyond
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800 Line
500 Line
200 Line
300 Line
100 Line
200 Line
Reversal Continues
• 100/800 Legs catch up
• South flow expansions complete
• Z1/0 Market driven by Exports,
Industrial, and South East
Demand
Sta 87
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Business Development Projects
Preston Troutman
TGP’s Recent Development
Project Dth/d Shippers In-Service Status
Utica Backhaul 500,000 Various Producers April 2014 In-Service;
500 Leg modifications ongoing
Rose Lake 230,000 South Jersey Res., Statoil Nov. 2014 Under Construction
Uniondale 34,000 UGI Resources Nov. 2014 Under Construction
Niagara Expansion 158,000 Seneca Resources Nov. 2015 FERC Application Pending
EA issued July 16, 2014
CT Expansion 72,100 Yankee Gas, Southern CT Gas,
Connecticut Natural Gas
Nov. 2016 FERC Application
Submitted July 31, 2014
Susquehanna West 145,000 Statoil Nov. 2017 PAs executed
Broad Run Projects 790,000 Antero Resources Nov. 2017 Final Engineering / Permitting
SW Louisiana Supply 900,000 Mitsubishi, MMGS Nov. 2017 PAs executed
NED - Market 600,000 –
1,200,000
In Active Development Nov, 2018 In Active Development
NED – Supply 800,000-
1,000,000
In Active Development Nov, 2018 In Active Development
South System
Flexibility
500,000 TBD
Anchor Shipper secured
Jan. 2015 Open Season – in progress
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Continued Development Success
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Utica Backhaul Transportation
Commercial Driver:
— SW Marcellus/ Utica production
to Gulf Coast markets
Capacity: 500,000 Dth/d
Customers: Range, Gulfport, Kaiser
Energy, SWN, Vantage, CHK
Project Scope:
— Pipe modifications at 8
compressor stations
Current Status:
— Project in service April 2014
— 500 Leg modifications underway
Rose Lake Project
Project Scope:
— Station 315 - New compression
— Station 317 - Miscellaneous
— Station 319 - New & replacement compression
Current Status:
— Construction began in April 2014
— In-service on November 1, 2014
Commercial Driver: Northeast Marcellus
to points of liquidity
Capacity: 230,000 Dth/d
Customers: South Jersey Resources
Statoil
In-service: November 2014
61
Transco
Millennium
Nat’l Fuel
Dominion
Rose Lake
Sta. 219 Pool
Statoil
South Jersey
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Uniondale Project
Commercial Driver: Market driven project to
serve UGI customers in NE Pennsylvania
Capacity: 34,000 Dth/d
Customer: UGI Resources
In-service: November 2014
Project Scope:
— Sta 321 – Inlet air cooling
Current Status:
— Construction activities complete
— Facilities placed in service
Transco
Millennium
Nat’l Fuel
Dominion Uniondale
Sta. 219 Pool
Niagara Expansion
Commercial Benefit: Northeast
Marcellus to eastern Canadian markets
Capacity: 158,000 Dth/d
Customer: Seneca
Estimated In-service: November 2015
Project Scope:
— 3.1 miles of 30-inch pipe looping
— Station 229 meter facilities
— Lease on National Fuel Gas
Current Status:
— EA issued on 7-16-2014
— Pre-construction activities underway
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Connecticut Expansion Project
Commercial Benefit: Additional
capacity to serve New England market
Capacity: 72,100 Dth/d
Customers: Yankee, Southern CT, CT
Natural
Estimated In-service: November 2016
Project Scope:
— 13.3 miles of pipeline loop
— Acquisition of Thompsonville
Lateral
Project Status:
— Contracts executed
— Lateral acquired
— July 31, 2014 FERC filing
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Susquehanna West
Transco
Millennium
Nat’l Fuel
Dominion
Rose Lake Statoil
Project Scope:
— 8.2 miles of 36” pipeline loop
— Incremental compression
– Sta. 317
– Sta. 319
Current Status:
– Field surveys underway to support FERC filing
– Anticipate FERC filing late 1Q2015
Commercial Driver: Northeast Marcellus
to points of liquidity
Capacity: 145,000 Dth/d
Customer Statoil
In-service: November 2017
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Broad Run Flexibility Project
Commercial Driver:
— SW Marcellus/ Utica production
to Gulf Coast markets
Capacity: 590,000 Dth/d
Customer: Antero Resources
Estimated In-service: November 2015
Project Scope:
— Pipe modifications at 6
compressor stations
— Class changes along 4 segments
Current Status:
— Station work ongoing
— Pipeline work expected in 2015
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Broad Run Expansion Project
Commercial Driver:
— SW Marcellus/ Utica production
to Gulf Coast markets
Capacity: 200 MDth/d
Customer: Antero Resources
Estimated In-service: November 2017
Project Scope:
— New compression at 3
existing stations
— New compression at 2
Greenfield stations
Current Status:
— Permitting and final engineering
— FERC filing anticipated 01/15
Southwest Louisiana Supply Project
Commercial Driver: Supply from multiple basins to Cameron LNG Export Facility
Capacity: 900 MDth/d
Customer: Mitsubishi, MMGS
Estimated In-service: 2018
Project Scope:
— Compressor station modifications to accommodate bi-directional flow
— 18,000 HP of new compression
— New pipeline laterals for enhanced supply access to the Perryville Hub
Project Status:
— Cameron LNG received all regulatory approvals
— Cameron LNG began pre-construction activities
— TGP to file FERC application in Q4 2015
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TGP Secured Projects
Supply driven, new markets emerging
Northeast Marcellus
Southwest Marcellus / Utica
Market Pull
Shorthaul services
Competition with SW
Marcellus/Utica
Strong development
GOM / SE markets
Supply Driven Expansions
Market Growth in South & Southeast
Supply diversity
GOM markets
LNG Exports
Linking the best markets to the best supply basins
Next Expansion Projects
Southwest LA
LNG Export
Southeast
New
England
Mexico
Drivers
1. Market need in New England
2. Continued Supply growth
Northeast Marcellus needs additional
pipeline infrastructure to grow
Southwest Marcellus & Utica
continues rapid growth; seeks new
markets
3. Southern markets desire supply diversity
Northeast Energy Direct Project (NED) – Market Path
Capacity: Scalable 0.8 – 2.2 Bcf/d
In-Service: Nov, 2018
Project Scope:
− ~177 miles new and co-located pipe
− ~73 miles of market delivery laterals
Commercial Benefit:
− Eliminates key bottlenecks
− Supply Optionality @ Wright, NY
− TGP 200 Line
− NED – Supply
− Constitution / Iroquois Gas
− Reduces energy costs region-wide
− Spurs economic growth region-wide
− Incrementally enhances TGP operations and
benefits entire region
Current Status:
− Agreements for ~500 MDth/d with LDC’s
− Negotiations with additional customers ongoing
− Applied to open FERC pre-filing proceeding
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Capacity: Scalable 0.6 – 1.0 Bcf/d
In-Service: Nov, 2018
Project Scope:
− ~135 miles of greenfield 30” pipe
− ~32 miles of 36” looping (TGP 300 Line)
− Compression required for subscription
level
Commercial Benefit:
− Provides producers with direct access to
Northeast markets
− Provides New England markets with
incremental, direct access to Northeast
supply
− TGP’s existing regional network
− Broad range of suppliers
− Incremental supply liquidity at Wright, NY
Current Status:
− Negotiations with customers ongoing
− Applied to open FERC pre-filing
proceeding
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Northeast Energy Direct Project (NED) – Supply Path
Southwest Marcellus / Utica Project
Continued supply growth
— Southwest Marcellus
— Utica
Unprecedented pipeline growth
— Existing pipelines reversed
— Need for additional pipelines
Emerging markets
— Southwest LA
— Texas / Mexico
— Southeast
— Other
Southwest LA / Texas Markets Market opportunities:
LNG Exports
Mexico market
Industrials
Opportunity:
Link to diverse supply basins
— SW Marcellus
— Utica
— Station 87
— Perryville
Sta 87
Pool
Sta 47
Sta
534
Pool
LNG
Facilities
Corpus Christi
2.1 Bcf/d
Lavaca Bay
1.4 Bcf/d
Freeport
2.8 Bcf/d
Golden Pass
LNG 2.0 Bcf/d
Sabine Pass
2.2 -3.0 Bcf/d
Lake Charles
2.0 Bcf/d
Cameron
1.7 Bcf/d
NET Mexico
2.0 Bcf/d
South System Flexibility Project
Sta 87
Pool
Commercial Driver:
— Increased South Texas/Mexico
demand
— Desire to “reach” to diverse supply
basins at Station 87
Capacity: 500,000 Dth/d
Customer: TBD (Anchor Shipper secured)
Estimated In-service: December 2016
Project Scope:
— Bi-directional station modifications
— Appurtenance facilities
Project Status:
— Binding open season closes
10/14/14
NET Mexico
Interconnect
Tennessee Gas Pipeline – Your Partner for Development
Shale continues to change the landscape New markets desire diverse supply basins Tennessee Gas Pipeline has successfully met producer and market needs
We look forward to future infrastructure projects to support your growth
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Thank You.