Pipelines: Delivering Energy Solutions. Presentation to Insight Natural Gas Forum April 26, 2010

Transcription

1 Pipelines: Delivering Energy Solutions Presentation to Insight Natural Gas Forum April 26,

2 Outline About CEPA Canada s EEE Context and the role of infrastructure Value Chain Efforts Critical Infrastructure Issues 2

3 About CEPA Transport 97% of the crude oil and natural gas produced in Canada CEPA members expect to invest more than $43 Billion (Cdn) in expansion in the next 15 years Represents a doubling of collective assets Total investment grows to $85 Billion adding Mackenzie and Alaska Operate over 100,000 kilometres of pipeline in Canada and the United States Pipelines are the safest and most environmentally sound way to transport oil and gas; we have a world class industry in Canada 3

4 CEPA Members 4

5 Prudhoe Bay Anchorage Whitehorse Norman Wells Canadian Natural Gas Facts billion cubic feet/day total production 10 billion cubic feet/day total exports $28 billion (CDN) value of net exports 56.3 trillion cubic feet total reserves (Source: NEB) Spectra Rainbow Lake Prince Rupert Zama Fort St. John Kitimat Prince George Terasen Gas ATCO Vancouver Olympia Huntingdon Seattle Spokane Portland Sundre Edmonton BP TransCanada Hardisty Empress Fort McMurray Lloydminster Kerrobert Alliance TransGas Regina Winnipeg Cromer Mandan Gretna Thunder Bay Clearbrook Superior St. Paul Moosonee Timmins Sudbury Sarnia Trans Quebec Maritimes & Maritimes & Northeast Quebec City North Bay Ottawa Montreal Oakville Portland Boston Halifax St. John Port Hawkesbury St. John s Emera Brunswick San Francisco Avon Salt Lake City Detroit Nanticoke Lockport Chicago Warren Toledo Santa Maria Bakersfield Torrance Los Angeles Enbridge Patoka Lima Canton Catlettsburg Yorkton Philadelphia Long Beach Ehrenberg Sunray Memphis January 2010 Artesia Colorado City El Dorado Big Spring Longview El Paso Port Arthur Houston New Orleans Lake Charles Three Rivers Freeport St. James Corpus Christi Non-Member Pipeline Sedimentary Basins CEPA Members - Natural Gas Pipelines 5

6 Pipeline Development Issues Oil pipeline system near capacity New natural gas supply needs to be connected to existing pipeline systems Infrastructure deficit requires significant investment and timely decisions Infrastructure = choice and responsiveness = energy security Regulatory Reform is sound public policy 6

7 ALASKA PIPELINE (Multiple Member Proposals) Prudhoe Bay Energy Infrastructure Investment Forecast $26 trillion USD Global Energy Sector, next 20 years (IEA, 2009) Anchorage Whitehorse Norman Wells MACKENZIE VALLEY PIPELINE GATEWAY (Enbridge) Kitimat TMX (Kinder Morgan) Prince George Kamloops Vancouver KEYSTONE XL PALOMAR GAS TRANSMISSION PROJECT August 2009 January 2010 San Francisco Los Angeles ENERGIA COSTA AZUL SUNSTONE PIPELINE Taylor Zama Rainbow Lake Gordondale Fort Saskatchewan Edmonton Lloydminster Calgary NORTH DAKOTA SYSTEM EXPANSION (Enbridge) ROCKIES ALLIANCE PIPELINE (Alliance) El Paso NIPISI PIPELINE PROJECT (Pembina) NORTH CENTRAL CORRIDOR Hardisty Fort McMurray Kerrobert Wichita Falls CORRIDOR EXPANSION (Inter Pipeline) FORT HILLS PIPELINE (Enbridge) Regina KEYSTONE Winnipeg Clearbrook Superior BISON PIPELINE St. Paul PROJECT Cushing Corsicana El Dorado Coffeyville Tulsa Wynnewood Tyler Houston Foreman SASKATCEHWAN SYSTEM CAPACITY EXPANSION (Enbridge) Longview Nederland Delevan Lockport Wood River ALBERTA CLIPPER (Enbridge) RABASKA (Gaz Metro & Enbridge) SOUTHERN LIGHTS (Enbridge) Chicago Springville Quebec City Boston ENBRIDGE-BP DELIVERY SYSTEM (Enbridge) SOUTHERN ACCESS (Enbridge) PatokaRobinson Sarnia Philadelphia GROS CACOUNA St. John Portland TEXAS ACCESS (Enbridge) HAYNESVILLE LATERAL LACROSSE (Enbridge) KEYSTONE XL Halifax Port Hawkesbury TRAILBREAKER (Enbridge) St. John s BROADWATER LNG Liquid Pipeline Gas Pipeline Sedimentary Basin LNG Terminal Sedimentary Basins CEPA Members Proposed Crude Oil and Natural Gas Pipeline Expansions 7

8 Energy Framework Initiative 8 Security / Reliability / Affordability / Innovation / Sustainability Six Pillars of Policy Activity 1. A Commitment to Sustainable End-use of Energy 2. A Commitment to Sustainable Energy Resource & Extraction, Production & Transmission Capability 3. Ensuring a Sustainable Approach to Energy & Climate Change 4. An Ongoing Social License to Build & Operate 5. A Continuous Improvement in Capacity 6. A Collaborative Approach on Intergovernmental Engagement Environmental Foundation Social Foundation Economic Foundation 8

9 What is Canadian Natural Gas? A nation-wide advocacy & communications initiative supported by the natural gas value chain in Canada to: develop objective, fact-based educational materials on natural gas; raise understanding among decision makers of the role that natural gas should play in achieving Canada s energy, environmental, and economic objectives; and demonstrate that natural gas is a smart foundation for Canada s evolving energy mix and encourage supportive policy. Sponsored by the Canadian Gas Association (CGA), the Canadian Association of Petroleum Producers (CAPP) and the Canadian Energy Pipeline Association (CEPA), with support from the Canadian Society for Unconventional Gas (CSUG) and the Canadian Natural Gas Vehicle Alliance (CNGVA). Collaborating with Canadian members of ANGA. 9

10 Key Attributes of Natural Gas Canadian natural gas is a significant contributor to Canada s well-being it s a job creator, a source of revenue for provinces and the federal government, and produces over $29.2 billion in exports. Canada has an abundant, growing supply of natural gas estimates indicate greater than 100 years worth - in conventional, unconventional, frontier, and LNG resources - a key part of an even bigger continental resource. Natural Gas is clean it is an efficient and low-emission end use energy choice. And, environmental responsibility is a foremost priority in its production, transportation, and distribution on water use, surface impact, emission control, and waste management. Canadian natural gas is a versatile energy solution gas and related technologies can improve end use efficiency, contribute to lower emissions, and provide the flexible partner needed in power generation for intermittent technologies like wind and solar, and in transportation. Natural gas is the affordable choice - used by over 6 million Canadian customers over 3.2 trillion cubic feet yearly to meet 30% of our energy needs in homes, businesses, and industry; Natural gas is reliable and safe in its production, storage, transportation, delivery and use by customers in every region of Canada. 10

11 CNGI work program focus on national level, adapt to each jurisdiction Developing an objective fact base Improving the understanding of Natural Gas in terms of: the growing robustness of the commercial resource in Canada, and the significance of the current and future gas market to Canada s wellbeing Establishing sound policy foundations for natural gas policy..addressing economic, social and environmental policy Developing specific federal policy options pertaining to: upstream development transmission distribution and end use 11

12 Policy asks Key Focus Areas Natural gas as a foundational element in a clean energy future for Canada and for North America (or getting natural gas into more visibly into the policy dialogue ) Broadening end-use Transportation Power generation Buildings and communities Upstream environmental policy Underpinned by the following complementary and enabling policy asks : Technology development Regulatory reform Fiscal competitiveness 12

13 Private and Public Interests Delivering safe, secure energy for Canadians joint responsibility with both private and public interests It is inaccurate and short-sighted to assume government alone is concerned with the public good It is in all parties best interests for energy infrastructure to be reliable, safe and environmentally sustainable 13

14 Government and Industry: A partnership Government decision making enables financial stimulus projects at little to no cost to government This requires: Cohesive policy Credible results-oriented regulation CEPA supports the Major Project Management Office (MPMO) Focus on horizontal coordination of federal departments in the review of a major project 14

15 Strategic Goals Must be Clear Projects that are determined to be in the public interest must proceed responsibly Focus on outcomes Cost of those projects is minimized so as not to burden Canadian consumers and investors with unnecessary cost Balance is needed to both protect the Environment and the Economy while meeting Energy needs (EEE) Development timelines are predictable and review processes are effective and efficient Invest in things that matter, not in things that don t, and know the difference 15

16 The Regulatory Imperative Key Principles are well known and broadly agreed to; Canada needs a regulatory framework across provinces and federally that delivers: Coordination between and within governments, including One project, one assessment consolidation for new projects Coordination of agencies and departments to eliminate duplication, streamline requirements, and share knowledge and expertise Timely and effective processes Balanced decision making, integrating environment and economy Using facts and expert decision making Throughout the life of federally regulated facilities Clear accountability and transparency of government Effective Aboriginal Crown Consultation Fully addressed across departments and jurisdictions Separates assessment from economic negotiations 16

17 Landowners Feel Safe: Two Generations of Results 83% Have a favorable opinion of the energy pipeline industry 83% Have a favorable opinion of the energy pipeline company(s) passing through/on their land 94% - State that the pipeline industry is very important to the Canadian economy Environment: Nearly ¾ report that pipelines do a good job protecting the environment 17

18 Damage Prevention CEPA is strongly committed to damage prevention We have been working with others through the Common Ground Alliance (CGA) to strengthen regulations Also working with NEB to strengthen enforcement regulations CEPA supports a National 811 One- Call system Damage prevention saves lives 18

19 EEE Success for Canadians Balance: Positive projects and investment to create jobs and future prosperity Balance: Effective and efficient environmental protection Possibility: A positive future for Canadian energy supply and leadership Be intentional 19

20 For more information please contact: Brenda Kenny President & CEO Canadian Energy Pipeline Association Suite 1860, 205-5th Avenue S.W. Calgary, Alberta T2P 2V7 Tel: (403) Fax: (403)