Texas Eastern Transmission, LP Gas Quality Technical Conference TETLP GQ (1)

Transcription

1 Texas Eastern Transmission, LP Gas Quality Technical Conference Washington, DC December 8, 2009 GQ (1)

2 Outline Gas Quality Initiative Background Tariff Proposal Q & A GQ (2)

3 Gas Quality Initiative FERC s Policy Statement: Collaborative process with stakeholders Evaluate historical and technical data in light of the NGC+ Whitepaper s Interim Guidelines Goal of accommodating new supplies while minimizing impacts on endusers Texas Eastern complied with all requirements Texas Eastern s proposal strikes a balance Significant changes in current supply Significant changes in supply in near future Accommodate historical expectations of flowing production, endusers, and LDCs GQ (3)

4 Gas Quality Initiative (Cont d) Fundamental Drivers for Collaborative Process: Quality of gas entering system significantly changing Historical constituent levels have been lower than existing tariff limits Limited commingling capabilities Specific parts of system where commingling can physically occur Sufficient flowing supply exists below the proposed tariff limits Changes to gas supply may affect future commingling capability Through the Collaborative Process, Texas Eastern has proposed tariff limits but has been accommodating where commingling reasonably ensured GQ (4)

5 Background Collaborative Process Texas Eastern commenced the collaborative in January 2007 at the request of customers and the Commission Other collaborative meetings held: October 14, 2008, Washington, DC December 4, 2008, Baltimore, MD February 12, 2009, Baltimore, MD April 2, 2009, Alexandria, VA June 17, 2009, Baltimore, MD August 13, 2009, Conference Call Filed with FERC on October 2, 2009 for FERC to resolve issues, per Policy Statement GQ (5)

6 Background - Map Uniontown-ML Oakford-R Perulack-ML/Leidy-R Lambertville- D Berne-ML Lebanon-R Oran-ML Eagle-ML Goethals-D Accident-R Chambersburg-R Crayne-R Kosciusko-ML New Roads-ML Blessing-ML ML = Mainline D = Delivery R = Receipt GQ (6)

7 Background - Historical Waivers Five existing historical waivers Four upstream of processing plants in the production area (TX and LA) with the requirement that gas at the tailgate of the plant meets the tariff Issued pursuant to GT&C Section 5.5 Provident City, Venice, Larose, Iowa Fifth waiver for liquefiable hydrocarbons for most of the system, excluding the 24 system Forerunner of the safe harbor -- no longer effective once the safe harbor effective Waivers allowed Texas Eastern to maximize i supply with flexibility to address operational issues GQ (7)

8 Background Changing Supply Historical long-haul flow from traditional production areas in the Gulf Coast and offshore Gulf of Mexico to markets in the Midwest, Mid-Atlantic, and Northeast New and changing sources of supply Increased regasified LNG Gulf Coast and Market Area Shale plays under development Coal bed methane GQ (8)

9 Background Changing Supply Emerging Shale Plays Supply Basins Supply Flows GQ (9)

10 Background - Supply Changes at Issue LNG - Cove Point Terminal and 5 terminals in TX, LA, and offshore Gulf of Mexico Potentially higher Btu content and Wobbe Index Number Potentially higher levels of nitrogen Marcellus Shale (certain areas in WV and southwest PA) Potentially higher levels of C2+ Haynesville Shale TX and LA Potentially higher levels of carbon dioxide Coal bed methane Market Area (PA) Potentially higher levels of carbon dioxide GQ (10)

11 Tariff Proposal Proposed tariff limits apply to both receipts and deliveries, consistent with historical tariff specifications Proposal based on input from collaborative and analysis of data from and other stakeholders Analyzed historical pipeline data Analyzed data and issues related to both suppliers and end-users provided by other participants in the collaborative Performed hydraulic commingling studies to validate proposals and analyze concerns Proposed limited waivers and exemptions to take advantage of commingling opportunities on specific parts of the system Significant amounts of system gas below tariff specifications Location on system at which commingling can physically occur GQ (11)

12 Tariff Proposal (Cont d) Current Tariff Tariff Filing Heating Value Min (BTU/SCF): 967 BTU/SCF No Change Heating Value Max (BTU/SCF): Not stated 1110 BTU/SCF Wobbe Number Not stated C2+/C4+ Max (%): Not stated 12% / 1.5% Liquefiable Hydrocarbons 0.20 GPM (C5+) GPM of C6+ Safe Harbor Correlated 15 Deg F CHDP Objectionable Matter Commercially Free No Change Oxygen (%) 0.20% 0.10% Inerts Total Max (%): 40% 4.0% 40% 4.0% CO2 Max (%): 3.0% 2.0% Nitrogen (%): Balance 2.75% (N2 + O2) H2S Max (GR/100CF): 0.50 GR/100CF No Change Total Sulphur Max (GR/100CF): 10 GR/100CF 5 GR/100CF Temp (Deg F) Max 120 Deg F No Change Liquids Free at Flowing Conditions No Change Water 7 lbs/1mmcf No Change Microbiological Agent Free No Change GQ (12)

13 Tariff Proposal - Nitrogen LNG peak shaving facilities sensitive to nitrogen Discussed in NGC+ Interchangeability Whitepaper System-wide historical data: Generally ranges from zero to 2.0% with occasional spikes over 3.1% On average, receipts at Blessing, TX contain 0.18% nitrogen, and deliveries at Goethals (NJ/NY) contain on average 0.59% nitrogen. Exemptions tailored to accommodate development/expansion of LNG terminals: parts of the system exempt so long as commingling opportunities sufficient for comingling to occur by stated point downstream Uniontown to Chambersburg, PA if commingled by Eagle, PA Mont Belvieu, TX to Opelousas, LA if commingled by New Roads, LA Exemptions can be accommodated on these parts of system because of the system configuration and the nature of system supply in these areas GQ (13)

14 Tariff Proposal - C2+ End users and LDCs sensitive to higher levels of C2+ Discussed in NGC+ Interchangeability Whitepaper System-wide historical data: Range of 1.0% to 12.0% The C2+ content at Blessing has averaged 3.09%. At Goethals, the average has been 3.34%. Waiver tailored to accommodate the development elopment of new supply: Holbrook Waiver permits up to 500,000 Dth/d of gas with up to 17% C2+ to enter the system upstream of the Holbrook compressor station until December 31, 2014 Limiting the waiver to area upstream of Holbrook reasonably ensures commingling because it will pass through the Holbrook Compressor Station GQ (14)

15 Tariff Proposal - Carbon Dioxide Issues related to carbon dioxide LNG peak shavers sensitive to carbon dioxide End users with emissions restrictions Discussed in NGC+ Interchangeability Whitepaper Potentially pipeline corrosive - PRCI Report recommends 2% limit System-wide historical data: Range of 0.5% to 2.0%, with excursions above 2.0% generally limited to Blessing, in South Texas Average carbon dioxide has been 1.16% at Blessing, and the average was 1.04% at Goethals. Phase-in accommodates existing high carbon dioxide supply: Parties with existing production that will not meet the proposed specifications exempt up to current production levels primarily PA, TX, and LA Commingled stream in east Texas currently approaching 2% carbon dioxide GQ (15)

16 Tariff Proposal ETX Commingling Study CO2 Impact Actual November 2009 Average From Longview 205 Longview-Joaquin Btu 1034 Wobbe 1341 CO Joaquin to PC Mainline Btu 1023 Wobbe 1330 CO Toward Provident City Central Gathering Btu 986 Wobbe 1289 CO Shelby County Btu 1018 Wobbe 1318 CO Joaquin Joaquin-Prov. City Btu 1013 Wobbe 1323 CO Joaquin- Castor Btu 1034 Wobbe 1341 CO Toward Castor GQ (16)

17 Tariff Proposal ETX Commingling Study CO2 Impact Impact at Maximum Exception Volumes From Longview 205 Longview- Joaquin Joaquin to PC Mainline Central Gathering Btu 984 Wobbe 1287 CO Btu 1034 Wobbe 1341 CO Joaquin- Castor Toward Castor Btu 1016 Wobbe 1318 CO Toward Provident City Shelby County 80 Btu 1004 Wobbe 1295 CO Joaquin Joaquin- Prov. City Btu 1013 Wobbe 1323 CO Btu 1034 Wobbe 1341 CO GQ (17)

18 Summary Tariff proposal represents culmination of several years of significant efforts by stakeholders Through collaborative process, participants were able to strike a balance between historical and near-future gas supply while protecting the interests of end-users Through collaborative process, gained consensus on majority of issues and others were more narrowly defined, with the result that only three gas quality specifications (nitrogen, C2+, and CO2) need to be addressed here GQ (18)

19 Q & A GQ (19)

20 Appendix Monitoring Segments GQ (20)

21 Appendix Hourly Chromatograph Posting GQ (21)