SPECTRA ENERGY CORP. Experience, Engagement, Execution

Transcription

1 SPECTRA ENERGY CORP Experience, Engagement, Execution October 16, 2014

2 Agenda Introductions Safety Moment Project Overview Addressing Issues and Challenges Spectra Energy: Growth Opportunities Spectra Energy Corp 2

3 Safety Moment Spectra Energy s Safety Culture Spectra Energy employees and contractors share a relentless commitment to a zero work-related injury and illness culture Company-wide training centred on don t walk by approach Every one, at every level, is encouraged to raise safety issues with direct reports, peers and executives Project-specific safety plan Identify safety risks and mitigation opportunities Evaluate and screen contractors Develop/review detailed task-specific safety plans Utilize Job Safety Analyses Daily safety meetings If needed, convene system-wide safety standowns Intervene early Measure and report progress Share lessons learned and best practices across organization Spectra Energy Corp 3

4 Project Overview Organization Structure Spectra Energy Partnership between Spectra Energy and BG Group Spectra Energy is leading overall execution of project Fully integrated project management structure FLUOR Prime EPCM Contractor for the project Engineering being performed out of the Calgary, AB and Houston, TX offices Spectra Energy Corp 4

5 Project Route Reflects Experience, Expertise and Careful Planning Spectra Energy Corp 5

6 Project Overview Scope Corridor approach: Up to two pipelines within a single right-of-way First pipeline: Up to 4.2 Bcf/day of natural gas to BG s proposed LNG terminal near Prince Rupert, BC Onshore: ~750km of 48 pipe w/ up to 600,000 HP at five compressor sites 25 onshore trenchless crossings (HDD, micro tunnel, aerial) and 1 tunnel Offshore: ~110km of 42 pipe Water depths exceeding 600m Schedule Issue for construction bid: 2017 Final Investment Decision: not before 2016 Start construction: 2017 In-service: 2020 Spectra Energy Corp 6

7 Project Overview Current Status Pipeline An Environmental Assessment Certificate Application that contemplates multiple pipelines in a single corridor» Under review; decision expected end of 2014 Project design reflects local and First Nations input collected over three years of stakeholder outreach Proactive, successful engagement and advanced negotiations with First Nations Baseline and technical data collected; advanced system design and planning complete Contracting strategies and early discussions with turbine suppliers, pipe mills, and construction contractors LNG Terminal Upstream Spectra Energy Corp 7

8 Challenging Terrain Kitsault Aerial Rugged, Mountainous Terrain Peace River Crossing Spectra Energy Corp 8

9 Environmentally and Culturally Sensitive Areas Nisga a Memorial Lava Bed Park Nass River Estuary Mugaha Marsh Nisga a Memorial Lava Bed Park Spectra Energy Corp 9

10 Species and Sites of Importance Moose & Caribou Cultural Sites Salmon Grizzly and BlackBears Historic Sites Spectra Energy Corp 10

11 Addressing Challenges What We re Focussed on... Spectra Energy and Fluor subject matter experts from across North America are involved in the risk identification and mitigation for the Westcoast Connector Project General project opposition Maintaining strong government relationships and Advisor of Choice positioning Achieving regulatory milestones on schedule BC Environmental Assessment Office Oil and Gas Commission Prince Rupert Port Authority BC Utilities Commission Spectra Energy Corp 11

12 Addressing Challenges What We re Focussed on... Reflecting local and Aboriginal concerns and delivering real benefits Labor force and contracting Impact on traditional land use, infrastructure, services, etc. Interface Management Achieving in-service schedule Spectra Energy Corp 12

13 First Nations Across the Route Spectra Energy Corp 13

14 First Nations Engagement Spectra Energy s Four Pillar Philosophy Consultation & Communication Relationship Building Capacity Building Economic Development Communicating frequently regarding activities, evolving interests and progress on commitments Creating positive, productive and mutually beneficial relationships based on a track record of trust Building capacity for economic development through investment in education and skills training Engaging Aboriginal business throughout the company s value chain. Spectra Energy Corp 14

15 Aboriginal and Community Relations Principles in Action Industry-leading relationships developed over six decades of engagement resulting in proven track record of securing social licence in BC Central to providing certainty to our business and supports the vision, purpose and values of the Spectra Energy Charter As a set of guiding principles, we commit to: Respect the treaty and aboriginal rights of First Nations, Métis and Inuit peoples of Canada, as recognized and affirmed in the Constitution Act (1982). Build and maintain sustainable, long-term relationships with Aboriginal peoples, based on mutual respect and common interests. Support the advancement and build local capacity for Aboriginal peoples through education, sponsorships and economic development. Spectra Energy Corp 15

16 Aboriginal and Community Relations Principles in Action Increase the quantity and quality of Aboriginal participation in Spectra Energy s workforce through training, employment and contracting. Recognize that Aboriginal peoples have unique cultural and historical characteristics and connections to the land, which must be accommodated when developing consultation programs for our local facilities and operations. Engage Aboriginal peoples in culturally appropriate ways as we design, build, operate and maintain our local facilities. We seek constructive consultative processes; open, transparent communications; and innovative, mutually-beneficial working arrangements. Spectra Energy Corp 16

17 Project Execution Challenges Construction Safety Physical and environmental hazards Communications Remote work sites Extreme weather conditions Mountainous terrain Geophysical During initial review, a total of 369 geo-hazards identified, including potential for seismic events, slope instability, soil degradation and erosion. Terrestrial Challenges include wetlands, glacial marine clays, forest fires and mud slides. Hazard scenarios include snowfall, high winds, inclement weather, flooding and lightning. Spectra Energy Corp 17

18 Project Execution Challenges Construction Marine Route considered sea floor geology, bathymetry, sea floor clearance, sea level clearance, pipe lay geometry, pipeline material constraints, shore approach geometry and access Other considerations include commercial/recreational fishing, avoidance of aquaculture activities and environmentally sensitive marine areas Temporary work camps 17 onshore and 2 marine camps proposed Contractor and labor availability Mainline construction contractors» Anticipate upwards of 5,800 personnel on the project during the peak construction year Offshore pipelay» Lay barge availability Spectra Energy Corp 18

19 Project Execution Challenges Supply Chain: Material selection and availability Line pipe competing projects and potential implications on schedule Mainline valve manufacturers capacity/capabilities Approved compression manufacturers limitations Logistics: Transportation systems Restricted shipping envelopes on public roads Access road and bridge designs on Forest Service Roads Railway infrastructure Spectra Energy Corp 19

20 Successful Project Execution To summarize, Spectra Energy and Fluor are setting up for success before commencing construction by: Implementing a World Class Safety Program Integrated Project Management Team In-Place Construction, Commissioning, and Operations Driven Schedule Quality Management Process Key Environmental and Cultural Initiatives Respecting the First Nation Culture and Territories Spectra Energy Corp 20

21 Spectra Energy - A North American Energy Leader Natural Gas Transmission Pipe: 19,000 mi Natural Gas Storage Capacity: ~300 Bcf Natural Gas Gathering Pipe: 70,000 mi Crude Transmission Pipe: 1,700 mi NGL Transmission Pipe: 1,500 mi SE Gas Processing Capacity: 3.8 Bcf/d 2Q14 DCP Gathered and Processed: 6.7 Tbtu/d 2Q14 DCP NGLs Produced: 450 MBbl/d Distribution Pipe: 39,500 mi Union Gas Retail Customers: 1.4 million Gas storage facility Gas processing plant Propane terminal NGL storage Shale gas formations Crude storage Major oil pipeline terminal Spectra Energy Corp 21

22 Growth Opportunities $8+B Projects In Execution Projects NEXUS Atlantic Bridge 2016 Dawn - Parkway Red Lake Spraberry Ozark Conversion Sabal Trail 2015 Dawn - Parkway OPEN TEAM South TEAM 2014 Gulf Markets AIM U2GC Salem Lateral Kingsport DCP projects* Spectra Energy Corp 22

23 Growth Opportunities Developing $20+B in Growth Projects Projects Access South Adair Southwest Appalachia to Market (A2M) Express-Platte organic expansions New England power conversions Gulf Coast LNG ICE Synergy Pipeline Express-Platte twinning Westcoast Connector W. Canada G&P 2017 Dawn - Parkway Union Gas expansions MW/SE/Mid-Atlantic Mexico exports DCP projects* Spectra Energy Corp 23

24 Recognized by: