NGA Pre‐Winter Briefing
November 6, 2013
Westborough, MA
Michael Dirrane
Director, Northeast Marketing
Spectra Energy U.S. Transmission Map
Miles of Pipe
13,297
Number of Compressor Stations 129
Total Horsepower
2,147,488
2
Algonquin Gas Transmission Directly Connected Power Generators
3
Algonquin Gas Transmission Monthly Deliveries
60,000
6.8%
50,000
5.7%
16%
of
Total
-0.4%
4.5%
9.2%
15%
of
Total
18%
of
Total
11.9% 23%
40,000
2.6%
of
Total
6.2%
19.1%
17%
of
Total
Mdth
31.6%
30,000
20,000
10,000
0
Nov
Dec
Prev 5 Winter Avg Pwr
W11_12 Pwr
Jan
W12_13 Pwr
Prev 5 Winter Avg Non Pwr
Feb
W11_12 Non Pwr
Mar
W12_13 Non Pwr
4
Algonquin Gas Transmission Power Sector Monthly Deliveries
16,000
-25.5%
14,000
-32.0%
-31.4%
12,000
-29.0%
10,000
-12.1%
Mdth
13.4%
2.8%
6.0%
8,000
22.2%
10.8%
6,000
4,000
2,000
0
Nov
Dec
Prev 5 Winter Avg Pwr
Jan
W11_12 Pwr
Feb
Mar
W12_13 Pwr
5
Days with Zero Interruptible Capacity
Available on Algonquin
350
349
300
292
Number of Days
250
200
150
100
50
89
0
August 2010 ‐ July 2011
August 2011 ‐ July 2012
August 2012 ‐ July 2013
6
Algonquin Gas Transmission West to East Utilization ‐ Cromwell Station 1,100,000
1,000,000
900,000
Daily Quantity (Dth)
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
8/1/12
9/1/12
10/1/12
11/1/12
12/1/12
1/1/13
Posted Capacity
2/1/13
3/1/13
4/1/13
5/1/13
6/1/13
7/1/13
Flow
7
8/1/2012
8/9/2012
8/17/2012
8/25/2012
9/2/2012
9/10/2012
9/18/2012
9/26/2012
10/4/2012
10/12/2012
10/20/2012
10/28/2012
11/5/2012
11/13/2012
11/21/2012
11/29/2012
12/7/2012
12/15/2012
12/23/2012
12/31/2012
1/8/2013
1/16/2013
1/24/2013
2/1/2013
2/9/2013
2/17/2013
2/25/2013
3/5/2013
3/13/2013
3/21/2013
3/29/2013
4/6/2013
4/14/2013
4/22/2013
4/30/2013
5/8/2013
5/16/2013
5/24/2013
6/1/2013
6/9/2013
6/17/2013
6/25/2013
7/3/2013
7/11/2013
7/19/2013
7/27/2013
Daily Quantity (Dth)
Algonquin Gas Transmission ‐ I System
East to West Utilization (East End Receipts)
500,000
400,000
300,000
200,000
100,000
0
‐100,000
‐200,000
Posted Capacity
Flow
8
Algonquin Gas Transmission Supply Diversity (MDth/d)
Sep 10 ‐ Aug 11
520
Sep 11 ‐ Aug 12
340
Sep 12 ‐ Aug 13
356
Tennessee‐ Mahwah
141
240
242
Transco
43
65
42
Columbia Hanover
108
88
64
Millennium
248
400
479
1060
1133
1183
Maritimes
105
65
47
Everett
95
48
9
Northeast Gateway 0
0
0
Tennessee‐ Mendon
70
87
124
270
200
180
Operator
Texas Eastern
West End Supply
East End Supply
9
Algonquin Gas Transmission Number of Restrictions
W12‐13 Location
W11‐12
W10‐11
Seal Only
Restrictions
Seal Only
Restrictions
Seal Only
Restrictions
Mahwah Mainline
0
6
9
5
5
26
Stony Point
2
134
6
28
9
71
Southeast
0
6
9
37
0
0
Oxford
39
78
0
0
0
0
Cromwell
61
84
20
107
19
23
Burrillville
0
0
1
3
21
1
Hubline East to West
0
0
0
0
0
0
Definitions:
Seal Only: Restrictions: AGT did not reduce scheduled quantities at the close of the Timely Cycle. Due to a capacity constraint, however, AGT did not accept nominations in excess of available posted capacity. AGT reduced scheduled quantities to posted pipeline capacity at the close of the Timely Cycle in accordance with GT&C Section 24 of the AGT Tariff.
10
The Region Needs More Pipeline Capacity
Texas Eastern
Algonquin
Maritimes & NE
Millennium
Iroquois
Tennessee Gas
NEW ENGLAND
2008‐09 $6.99/dth
2011-12 $3.99/dth
2012‐13 $9.62/dth
PRICE PREMIUM
BOSTON
2008‐09 $0.24/dth
2011-12 $0.92/dth
2012‐13 $5.57/dth
IN the FUTURE: Infrastructure needed to get supplies to market
NEW
YORK
MID‐ATLANTIC
2008‐09 $6.75/dth
2011-12 $3.07/dth
2012‐13 $4.05/dth
11
Algonquin Incremental Market
AIM Expansion
Purpose:
Provide growing New England demand with access to abundant regional natural gas supplies
Regional Supply
Project Scope:
 Providing 342 MMcf/d of additional capacity to move Marcellus production to Algonquin City Gates
 CapEx: ~$850MM
Customers:
 UIL Holdings  Northeast Utilities  National Grid  NiSource
Project Status:
 FERC pre‐filing commenced June 2013
 File FERC application 1Q14
 Receive FERC certificate 1Q15
 Commence construction 2Q15
 In‐service 2H16
Facilities:
 Take up and relay portions of existing 26” with 42”
 Additional horsepower at almost every compressor station
 Expansion of constrained parts of the pipeline system
 Upgrades of meter stations to accommodate incremental flow
12
What’s Next?
•
•
•
Currently Developing Additional Incremental Expansion of AGT
Target In Service 2017
Target markets
•
•
•
•
•
AGT City Gates
Northern New England
Atlantic Canada
100 – 200 MDth/d but scalable
Incremental Project Benefits
•
•
•
•
Direct access to liquid supply points
AGT city gate access
Scalable to the market need
Lower environmental impact
13
Expansion of Algonquin to Maritimes
“Head of G” to Beverly Ramapo to Beverly Project Description:
 Add compression at Weymouth to allow physical delivery from AGT to M&NE
 Loop and replace upstream piping as needed  Misc. meter station modifications
14
NJ‐NY Expansion Project Overview
• NJ‐NY Expansion Project is a more than $1 billion privately funded expansion of Spectra Energy’s existing Texas Eastern Transmission and Algonquin Gas Transmission pipeline systems
– Scope: Approximately 15.5 miles of new pipeline and 4.8 miles of replacement pipeline from Linden, NJ to Manhattan; new meter and regulating stations; modifications to existing facilities
– Capacity: Up to 800 million dekatherms per day – Projected Completion: Fourth Quarter 2013 per FERC Certificate to meet Con Ed’s 2013/2014 winter energy needs
– Annual Energy Savings: $700 million in the New Jersey and New York region
15
Texas Eastern
Appalachian Shale Supply Interconnect Program
58 Requests In‐Service &
Under Agreement
12.9 Bcf/d
(requested tap & posted M&R capacity)
Current Appalachian Shale Supply
1.5 Bcf/d
31 In‐Service (posted M&R capacity)
5.9 Bcf/d
27 In Progress & Under Agreement
(Scheduled 2013 In‐Service)
7.0 Bcf/d
Texas Eastern Appalachian Shale Supply Growth
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
10/01/12
07/01/12
04/01/12
01/01/12
10/01/11
07/01/11
04/01/11
01/01/11
10/01/10
07/01/10
04/01/10
01/01/10
‐
December 5, 2012
16
Texas Eastern Transmission, L.P.
Supply Diversity (MDth/d)
Operator
Sep 10 ‐ Aug 11 Sep 11 ‐ Aug 12 Sep 12 – Aug 13
TE Marcellus Production
263 823 1,747 REX ‐ Clarington
359 403 295 Lebanon Area (ANR, PEPL, REX, TX Gas)
515 249 129 TETLP Mainline (traditional)
693
704 592 24”
126
59
58
30”
1,560
926
435
TETLP Market Zones Supply
3,516 3,164 3,256 17
U.S. Transmission & Storage
Projects in Execution
Thru 2017
~$6 B in expansion projects
~3 Bcf/d in new pipeline capacity AIM
MARCELLUS
NJ‐NY Expansion
OPEN
UTICA
TEAM 2014
Expansion Project
Kingsport
Sabal Trail
Bobcat Storage
In‐Service
New Jersey ‐ New York Expansion
4Q13
TEAM 2014
2H14
Kingsport
2013‐2015
OPEN
2H15
AIM
2H16
Sabal Trail
1H17
18