MTS Meeting March 25, 2004 Agustin Ferrufino Director, Engineering & Construction Gulfstream Offshore Gulfstream Overview What is Gulfstream? • 587-mile transmission gas pipeline ! 437 miles of 36” offshore pipeline ! 134 miles of onshore pipelines in FL ! 16 miles in AL & MS !Compression & gas treatment in AL • Placed into service May 2002 • Cost: $1.468 billion • Design capacity: 1.1 Bcf/d ! Enough to create electricity for 4.5 million Florida homes • Partnership between Williams & Duke Energy Gulfstream Overview Phase I May 2002 Gulfstream Overview Jackson County, MS Sta. Sta. 015 015 Sta. 025 025 Mobile County, AL Sta. Sta. Sta. 045 045 MBPP MBPP (600) (600) ExxonMobil ExxonMobil (150) (150) Gulf Gulf South South (250) (250) Sta. Sta. 050 050 Sta. Sta. 035 035 Williams Williams (300) (300) Sta. Sta. 055 055 Destin Destin (600) (600) Compressor Compressor Sta. Sta. 410 410 –– Coden Coden Sta. Sta. 005 005 DIGP DIGP 20” 20” (250) (250) Line Line 060 060 Mississippi Sound Gulf of Mexico Line Line 200 200 Gulfstream Overview What made Gulfstream unique? • First natural gas transmission pipeline built in the Gulf of Mexico • Largest pipeline in the Gulf of Mexico ! 420 miles of 36" OD, high pressure rating of 2180 psig MAOP • Designed with no compression offshore • First pipeline on east side of the Gulf of Mexico • Florida’s first natural gas transmission pipeline in 40 years • Only offshore gas pipeline to make landfall in Florida ! Strict dry gas specs ensure minimal quantity of liquids delivered • Other technological breakthroughs during construction and commissioning Challenges Route Selection Permitting Schedule Construction Sunshine Skyway Bridge • Protecting steel plates: 72" ID half circle x 3” thick • Distance: Continuous 300 feet on each side of the bridge • Cover: 3 feet below bottom Route Selection Route Selection Schedule Phase I Schedule Filed Filed for for FERC FERC Certificate Certificate Oct. Oct. 1999 1999 Received Received Started Started FERC FERC Offshore Offshore Approval Approval Construction Construction Feb. Feb. 2001 2001 July July 2001 2001 In-Service In-Service May May 2002 2002 Build Build Additional Additional Facilities Facilities As As Needed Needed Williams/Duke Williams/Duke Purchased Purchased The The Project Project January January 2001 2001 Florida Florida DEP DEP Permit Permit March March 2001 2001 Started Started Onshore Onshore Construction Construction Oct. Oct. 2001 2001 Permits Significant Milestones • Final EIS received in January 2001 • FERC certificate issued in February 2001 • Florida DEP permits received in March 2001 • Implementation plan filed in April 2001 • Alabama COE permit received in May 2001 • MMS permit received in June 2001 Onshore Construction Station 410 • Harmony Corporation lead construction contractor • Dual Train Mole Sieve Gas Dehydration • Dual Train Propane Refrigeration Hydrocarbon Dew Pt. Control • Rolls-Royce RB211 turbines • Dresser Rand D10RS comp. • 2 Operating, 1 Spare • 119,100 ISO HP Installed Station 410 Coden, AL Onshore Construction Station 410 Onshore Construction Onshore pipelines • 134 miles of 16”, 24”, 30” & 36” pipelines installed in 2001 & 2002. • 4,000 feet installed per day • MAOP 1480 psig • 13 meter stations • 10 HDDs Offshore Construction Construction Facts • Started June 2001 • Stolt Offshore prime offshore contractor • PCS lead design consultant • Offshore pipe ! ! ! ! 2180 psi design pressure Mostly 36” X-70 pipe with 0.820 wall thickness CWC designed for stability in 100year storm with specified densities up to 205 pcf Water depth up to 800’ Offshore Construction Lay Barge 200 • Used in water depths greater than 50’ • Set a world record welding 274 double joints (548 single jts) in 24 hours • 5 fully automated welding stations, 1 AUT and 2 field joint coating stations • 550’ long (1,000’ w/stinger) • 400 workers • Lays 3-4 miles per day Offshore Construction Lay Barge 200 Offshore Construction Derrick Lay Barge 801 • Used in intermediate water depths (20’ to 50’) in AL and in FL State waters • Capable of laying 1 mile of pipe per day • 7 work stations • 1 AUT stall • 351’ long • 233 workers Offshore Construction Spud Barge • 130 workers • Shallow water lay barge; Ms. Sound in Al. and Ms. • Capable of laying 4,000’ of pipe per day • 7 work stations • 1 AUT stall • 500’ long • 4 spuds Offshore Construction Other Vessels: • Saipem Castoro 10: jetting OCS and installations of WSSTI • Horizon Pecos: jetting offshore Ala to WSSTI • Stolt DLB 801: installation of offshore mainline valve • Stolt DSV Hawk: installation of offshore mainline valve • Saipem Far Sovereign: plowing in Florida • 250 Jack-up: Pipeline flooding support at ESSTI • 145 Jack-up: Installation of mainline valve in Tampa Bay, near fishing pier Offshore Design 36” ANSI 900 Wishbone Wye • 36” X 36” X 36”, 75 yield material • Weight: 46,821 lbs (23.4 Tons) • Overall shipping dimensions: 20.25’ x 9.75’ • For future expansion options Pipe Order DSAW Pipe Order Summary • Order placed -- 12/00 • First slab deliveries to Europe -- 1/01 • Pipe rolling started -- 2/01 • First shipment arrived in US -- 4/01 • 13 ships delivered pipe to AL/FL from Europe • 119 barge loads of pipe delivered to AL/FL from Panama City, FL Pipe Order DSAW Pipe Order Summary • Summary of pipe delivered in 2001 ! Total footage = 2,905,700’ ! Total est. pieces = 73,600 ! Net tons = 449,900 tons • Summary of pipe delivered 2002 ! Total footage = 521,200’ ! Total est pieces = 13,200 ! Net tons = 37,800 tons Pipe Coating Summary • Pipe coating suppliers included Dupont, Jotun, 3M, Lilly, BASF • Powder supplied through 2003 ! FBE – 2,354 tons ! Anti Slip – 270 tons ! Abrasion Resistant – 106 tons • Raw materials required ! Iron ore – 250,000 MT ! Cement – 70,000 MT ! Reinforcing wire – 50 million sq. ft. ! Plastic – 24 million sq. ft. Pipe Coating Plants Theodore, AL Pipe Coating Plants Port Manatee, FL Pipe Delivery Load In vs CWC Production 36" x 0.820" Load In vs. CWC Production 27,000 25,500 24,000 22,500 21,000 19,500 18,000 15,000 13,500 12,000 10,500 9,000 7,500 6,000 Pipe Load In 4,500 3,000 CWC Production 1,500 37255 37247 37239 37231 37223 37215 37207 37199 37191 37183 37175 37167 37159 37151 37143 37135 37127 37119 37111 37103 37095 37087 37079 37071 37063 37055 37047 37039 37031 37023 37015 37007 36999 0 36991 Pipes 16,500 Pipe Delivery Load Out vs CWC Production Gulfstream Project - CWC Performance 40,000 Actual Prod. 35,000 Actual Load out + projection @450 jts/day 30,000 20,000 15,000 10,000 5,000 12/18/01 12/4/01 11/20/01 11/6/01 10/23/01 10/9/01 9/25/01 9/11/01 8/28/01 8/14/01 7/31/01 7/17/01 7/3/01 6/19/01 6/5/01 5/22/01 5/8/01 4/24/01 0 4/10/01 Pipes 25,000 05 Ju l09 - 01 Ju l13 - 01 Ju l17 - 01 Ju l21 - 01 Ju l25 - 01 Ju l29 - 01 Ju l0 02 Aug 1 -0 1 06 Au 10 - g-0 1 Aug -0 14 Au 1 18 - g-0 1 Aug -0 1 22 Aug -0 1 26 Au 30 - g-0 1 Aug -0 03 Se 1 07 - p-0 1 Se 11 - p-0 1 Sep -0 15 Se 1 19 - p-0 1 Se 23 - p-0 1 Sep -0 1 27 Sep 01 - -0 1 Oc 05 - t -0 1 Oct 09 - -0 1 Oc 13 - t -0 1 Oc 17 - t -0 1 Oct 21 - -0 1 Oc 25 - t -0 1 Oct 29 - -0 1 Oc 02 - t -0 1 Nov -0 1 06 No 10 - v -0 1 No 14 - v -0 1 Nov -0 18 No 1 22 - v -0 1 No 26 - v -0 1 Nov -0 30 No 1 04 - v -0 1 De 08 - c -0 1 Dec -0 12 Dec 1 -0 1 16 De 20 - c -0 1 Dec -0 1 Daily Production (SJ) 600 550 500 400 350 250 100 30000 300 25000 TS 'BARRY' WSSTIA 28-29 July-01 TS 'GABRIELLE' PINNACLES 18-20 Aug-01 MLV 2D 9-Sep-01 Daily Production HR 'MICHELLE' MLV 2E 19-Oct-01 Cumulative Production 20000 200 150 15000 MLV 2F 21-Nov-01 50 0 Cumulative Production (SJ) Laying Pipeline LB-200 Daily Production GULFSTREAM PROJECT - LB200 Daily Production As Built Up to December 20th 50000 48,802 SJ 45000 450 40000 35000 10000 5000 0 20-Dec-01 Lay Dow n Com plete Commissioning Preparing for service • Flooding the pipelines for hydrotest • Hydrotesting the segments • Dewatering the supply & mainline • Drying the mainline • Purging & commissioning the mainline Largest Dewatering Spread Valve Diagrammatic Environmental Offshore Mitigation Developed mitigation plan in conjunction with the Florida Department of Environmental Protection, the Florida Marine Research Institute, the U.S. Army Corps of Engineers, the Hillsborough County Environmental Protection Commission, the Minerals Management Service, and the National Marine Fisheries Service. Federal Waters • Added new limestone hard bottom • 49.4 acres of mitigation • 153 man-made reef modules • 130,000 tons of limestone • Monitoring up to 10 years Environmental Offshore Mitigation State Waters • 19.74 acres of mitigation • Accomplished using 100 20X24 shallow water reef habitat modules • Required 5,000 tons of Florida limestone • Required that divers physically remove and transplant soft and hard coral from the proposed pipe lay area Environmental Environmental Mitigation Onshore • Spoil Island (65 acres) !Created bird sanctuary w/ Audubon & Port • Harbor Key (100 acres) !Exotic plant removal • Lake Wales Site (398 acres) !Created and enhanced wetlands & uplands !Planted over 117,000 trees • Manatee Site (181 acres) !Exotics removal, creating wetlands !Planted 3,500 trees & 500,000 plants What’s Next? Phase II Extension In May 2003 Gulfstream announced an agreement with Florida Power & Light to provide 350 MMcf/d for its Martin & Manatee plant expansions. • 103 miles • 30-inch diameter pipe • 1 meter station • Construction begin Spring 2004 • In service Winter 2004 2004 Facilities