GAZIFÈRE INC.
DEMANDE D’AUTORISATION PRÉALABLE
REINFORCEMENT – CHEMIN PINK
DESCRIPTION DU PROJET ET INFORMATION TECHNIQUE
1.
Project Objectives
Gazifère Inc. supplies natural gas to the West End of Gatineau through a NPS 6 steel high-pressure pipeline
along chemin d’Aylmer. The distribution system in the West End of Gatineau has seen rapid growth over
the past years and is anticipated to continue to grow at a similar pace. As a result, the demand will quickly
exceed the supply capacity of the existing high-pressure infrastructure. Consequently, the high-pressure
system feeding the West End of the City of Gatineau requires reinforcement to be able to deliver the
additional load demand anticipated for the 2010 / 2011 heating season.
Gazifère proposes to reinforce the existing high-pressure system by installing 2,800m of NPS 8 steel gas
main along Chemin Pink, 1,650m of NPS 8 steel gas main on Chemin Klock, 24m of NPS 6, 76m of NPS 8
and 50m of NPS 12 steel gas main on Chemin Antoine-Boucher. Gazifère is also proposing the installation
of a new district station on Chemin Antoine-Boucher at Chemin Klock. This will provide a fourth feed to
the NPS 6 steel main on Chemin d’Aylmer, by connecting the NPS 8 main along Chemin Pink to the NPS 8
steel main on Chemin Vanier, resulting in the introduction of supply to the northern sector thereby reducing
the load on the existing station, Aylmer district located at Rue Principale and Boul. Wilfrid Lavigne in
Gatineau. We anticipate, based on our forecasts, that this work will extend the useful life of the existing
Gatineau system for the next 5 years after which time a more extensive solution must be considered. The
future work will likely consist of providing a western feed for the system through a third river crossing
from the Ontario distribution system of Enbridge Gas Distribution Inc in 2015 depending on organic
growth and customer consumption. The work proposed in this filing will ultimately form part of the future
river crossing system feed.
2.
Project Description
2.1. Pipeline Routes (see exhibit GI-1, documents 2 & 2.1)
The proposed reinforcement main is a new 8 inch steel pipeline that will tie-in to an existing 8 inch
steel main on Chemin Pink at Chemin Vanier and to an existing 6 inch Plastic main on rue Pierre de
Bain.
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Requête 3722-2010
GAZIFÈRE INC.
DEMANDE D’AUTORISATION PRÉALABLE
REINFORCEMENT – CHEMIN PINK
DESCRIPTION DU PROJET ET INFORMATION TECHNIQUE
2.2. Operating Pressure
The proposed NPS 8 steel high pressure main will have a normal operating pressure of 1207 kPa (175
psig.) corresponding to the maximum operating pressure of the existing Gazifère high-pressure
network, but will be tested and rated to operate at 3240 Kpa (470 psig) corresponding to the proposed
operating pressure of the future River crossing.
2.3. Project Schedule
Construction is anticipated to begin in June 2010, and should be completed by October 2010.
2.4. Pipeline Lengths
The pipeline lengths of the proposed steel high pressure main are as follows:
Street
Chemin Pink
2,800m
Chemin Klock
1,650m
Chemin Antoine-Boucher
Total
3.
Pipe length
150m
4,600m
Project Justification
The Gazifère high pressure network ends at the Aylmer District station, which, along with regulating
stations at Chemin McConnell and Chemin Vanier as well as Chemin Rivermead and Chemin d’Aylmer,
reduces the gas pressure (from high pressure to intermediate pressure) for distribution throughout the West
End of Gatineau. Of the three stations, the Aylmer district station currently supplies 63% of the demand for
the western sector of our system.
In order to maintain the required outlet pressure for the west distribution system, a minimum inlet pressure
of 700 kPa (100 psig) is required into the station.
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GAZIFÈRE INC.
DEMANDE D’AUTORISATION PRÉALABLE
REINFORCEMENT – CHEMIN PINK
DESCRIPTION DU PROJET ET INFORMATION TECHNIQUE
The network analysis for the 2010 / 2011 heating season is forecasting inlet pressures to the Aylmer
District Station to be 718 kPa (104 psig) at peak hour on a day with daily mean temperatures of –29oC and
dropping to 612 kPa (89 psig) in the following heating season. The distribution system is designed for a
worst case scenario where the daily mean temperature is –29oC, not including wind chill, to meet the
demand load for the peak hour periods rather than annual volumes. If the peak hour periods were not met,
then Gazifère would not be able to supply all of their customers during these peak times.
The system minimum pressure of 700kPa (100 psig) is derived with a safety factor to ensure that all
downstream requirements can be maintained during peak operating conditions, so that the risk of losing
customers is minimized. The Gazifère high-pressure network is analyzed using customer consumption data
from the previous heating season.
The high-pressure network in Gazifère currently operates at the maximum operating pressure (MOP) of
1207 kPa (175 psig) The MOP is the highest pressure that the system can operate at, which is determined
by the type of material and the test pressure used at the time the mains were installed. Therefore, additional
capacity cannot be attained by elevating the operating pressure of this network.
The growth that has occurred in the West End of Gatineau in the past has brought the system in this area of
Gatineau to near minimum allowable pressures. The majority of the west end feed is supplied through the
Aylmer district station and the ability of the pipe feeding this station has reached near capacity. Without
this reinforcement, Gazifère would not be able to accommodate future growth and would be operating very
near capacity for 2010 / 2011 heating season. By introducing a new station to our distribution system to the
north of Aylmer district station through new pipe, we will be able to better load balance the entire network
and relieve much of the load delivered through Aylmer district by distributing it to the new station. This
reinforcement will provide Gazifère with the necessary means to continue uninterrupted supply to its
existing firm customers as well as supply future growth in the west end of the distribution system. The
reinforcement is the least disruptive and most cost effective means of continuing feed and will also benefit
future reinforcement solutions which may be required, depending on customer growth and usage, in the
next 5 years.
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GAZIFÈRE INC.
DEMANDE D’AUTORISATION PRÉALABLE
REINFORCEMENT – CHEMIN PINK
DESCRIPTION DU PROJET ET INFORMATION TECHNIQUE
4.
Project Costs
The estimated project costs for the proposed reinforcement is:
Cost
Item
Pipe and Coating
$235,000
Material (valves, fittings, miscellaneous)
$58,800
Construction Materials (sands, asphalt, rock
$652,200
excavation etc)
Construction Labour Costs
$627,300
Overheads
$223,500
District Station
$65,000
Contingency – 4%
$74,500
$1,936,300
Total Capital Costs
5.
Project Feasibility Study
It is estimated that this reinforcement would allow an additional 2,374 residential and small commercial
customers. This translates into a peak load of 5625 m3/hr.
The following Table shows the projected peak load and customer count:
CUSTOMER ADDITIONS & ADDITIONAL PEAK LOAD FORECASTS
RESIDENTIAL
Heating
season
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Original : 2010-02-16
No. of
customers
additions
Current
450
462
476
489
437
Peak
Load (m3)
7393
901
924
952
979
874
COMMERCIAL
No. of
customers
additions
Current
12
12
12
12
12
Peak Load
(m3)
1965
199
199
199
199
199
Total
Forecasted
Peak Load
m3
9358
10458
11582
12732
13911
14983
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Requête 3722-2010
GAZIFÈRE INC.
DEMANDE D’AUTORISATION PRÉALABLE
REINFORCEMENT – CHEMIN PINK
DESCRIPTION DU PROJET ET INFORMATION TECHNIQUE
The net present value of this reinforcement project, taking into account these customers additions, is
2,236,718$ and the internal rate of return is 8.13%. Please refer to the financial feasibility study at exhibit
GI-1, documents 3 and 3.1
6.
Authorizations Required Under Other Laws
The following permits / easements will be obtained prior to the construction of the proposed reinforcement:
Permits
7.
Organization
Ville de Gatineau (secteur
Aylmer)
Status
Being prepared for
submission
2.
Ministère de l’environnement et
de la faune
Being prepared for
submission
3.
Ministère des Transports du
Québec
Being prepared for
submission
1.
Impact on Rates
See exhibit GI-1, documents 3.2 & 3.3.
8.
Impact on the Quality of the Natural Gas Distribution System
Without the installation of a reinforcement main, Gazifère will be at risk of not sustaining the required
pressures to the Aylmer intermediate pressure distribution system during the 2010 / 2011 heating season
peak hour demand.
The proposed reinforcement will improve the reliability of natural gas delivery to the West End of Gatineau
by providing a fourth feed to the north of the existing Aylmer district station. Aylmer District is currently
the primary feed for the area and is near capacity. As an additional benefit, this reinforcement will also
ensure that the feed to the West End of Gatineau can be sustained in the event repairs are required to a
damaged gas main by balancing pressure and feed through the remaining stations.
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GAZIFÈRE INC.
DEMANDE D’AUTORISATION PRÉALABLE
REINFORCEMENT – CHEMIN PINK
DESCRIPTION DU PROJET ET INFORMATION TECHNIQUE
9.
Alternate Solutions
Alternate routes were examined during the design stage of the proposed reinforcement. No alternatives
were deemed to be practical or feasible when compared to the length and cost of the proposed
reinforcement identified above.
The following alternate routes were considered:
A.
4100m of NPS 8” Steel High Pressure
On: chemin Aylmer
From: chemin de la Montagne
To: chemin Vanier
Forecasted system minimum pressure after reinforcement: 707 kPa (103 psig)
Estimated cost of reinforcement: $ 2,277,000.00
B.
4100m of NPS 8” Steel High Pressure
1700m of NPS 8” Steel High Pressure
On: chemin Aylmer
On: rue Laurier / Alexandre - Tache
From: chemin de la Montagne
From: rue Maisonneuve
To: chemin Vanier
To: rue Scott
Forecasted system minimum pressure after reinforcement: 755 kPa (110 psig)
Estimated cost of reinforcement: $ 3,325,000.00
C.
1900m of NPS 12” Steel Extra High Pressure
On: rue Jacques Cartier
From: Hull Metering Station
To: Gatineau River
2400m of NPS 12” Steel Extra High Pressure
On: boulevard Fournier
From: Gatineau River
To: rue Sacre Coeur
1700m of NPS 12” Steel High Pressure
On: rue Laurier / Alexandre - Tache
From: rue Maisonneuve
To: rue Scott
Forecasted system minimum pressure after reinforcement: 924 kPa (134 psig)
Estimated cost of reinforcement: $ 4,990.000
D.
The final alternate route that was considered was a third Ottawa River crossing in the
Aylmer area. At this time, the infrastructure on the Ontario side of the Ottawa River will
not support a crossing. The complexity of this crossing along with the reinforcement
required to Enbridge Gas Distribution’s system would not allow for the installation of this
reinforcement in time to accommodate this year’s growth in the West-End of Gatineau
for the 2010 / 2011 heating season.
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GAZIFÈRE INC.
DEMANDE D’AUTORISATION PRÉALABLE
REINFORCEMENT – CHEMIN PINK
DESCRIPTION DU PROJET ET INFORMATION TECHNIQUE
10. Applicable Technical Standards
The proposed reinforcement will be designed and constructed in accordance with the Canadian Standards
Association (CSA) Z662, which are the technical standards that govern oil and gas pipelines in Canada. In
addition to these standards, all Enbridge Gas Distribution policies will be adhered to.
11. Creation of a deferral account
The establishment of a deferral account is required in order to proceed with some expenditures that will be
necessary as part of the next phase of this project which is the Third River Crossing. These include the
acquisition of a parcel of land for the future installation of a pressure control station on the distribution
system as well as other costs related to external consulting expertise related to civil engineering,
environmental, and geotechnical studies.
A total of $225,000 is requested.
Gazifère is requesting that this deferral account be included in rate base.
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