East Tennessee Natural Gas. Shipper Meeting. Fox Den Country Club Knoxville, TN April 20, 2017

Transcription

1 East Tennessee Natural Gas Shipper Meeting Fox Den Country Club Knoxville, TN April 20, 2017

2 Safe Harbor Statement Some of what we ll discuss today concerning future company performance will be forward-looking information within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward-looking statements, and you should refer to the additional information contained in Enbridge Inc. s and Spectra Energy Partners Forms 10-K and other filings made with the SEC concerning factors that could cause those results to differ from those contemplated in today s discussion. As this is a joint presentation, the terms we, our, and us refer to Enbridge Inc. and/or Spectra Energy Partners, as appropriate. East Tennessee Natural Gas Shipper Meeting 2

3 Safety Moment George Snyder Strategic Advisor Marketing

4 Agenda Introduction Winter Operations Maintenance & Scheduling Update - Break - Gas Commodity Price Trends will Impact Future ETNG Expansions East Tennessee Projects: What s to come? Ryan James Director Marketing & Storage BD Mark MacPherson Director Capacity Services & Scheduling Mark MacPherson Director Capacity Services & Scheduling Bill Wickman Strategic Business Development Bill Wickman Strategic Business Development Q & A East Tennessee Natural Gas Shipper Meeting 4

5 Introduction Presentation Al Monaco Ryan James Director Marketing & Storage BD

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7 What we do We help to fuel the quality of millions of people everyday by connecting them with the energy they need Our liquids business Our natural gas business Our renewables & transmission business 16,500 miles of active pipe 3 million bpd capacity More than 100 unique commodity types 34,410 miles of natural gas lines Moving 15% - 20% of North America s gas needs 23 renewable projects in wind, solar, geothermal and waste heat recovery 2,800 megawatts generating capacity Our gas distribution business 3.5 million customers across Enbridge Gas Distribution and Union Gas Servicing more than 500 different communities 7

8 Safety is our #1 Priority Above all else, we are always working to ensure the safety of our people, neighbors and the environment We have spent more than $1.5 billion in 2015 to help us maintain the integrity and reliability of our pipeline systems We monitor our lines 24/7/365 using both people and computerized analysis We inspect our pipelines on a regular schedule. In 2015, we completed roughly 275 in-line inspections We held more than 500 emergency response exercises, drills and equipment deployments in

9 Organizational Structure Rich Paglia Marketing Leah Moss Marketer Services Ryan James ETNG & Storage BD Jed Howard Storage BD George Snyder ETNG, Saltville, OGT, Big Sandy Marketer Services Team John Gomez Joey Sauls Ross Bunting East Tennessee Natural Gas Shipper Meeting 9

10 Growth Now and in the Future Supply to Markets Power Generation Demand Market Growth Northeast & New England Strong throughput throughout winter seasons Market expansion opportunities to serve LDCs, power generators and industrial customers Marcellus/Utica Marcellus averaging 5.5 Bcf/d of flows directly into Texas Eastern By 2017, Enbridge will have capacity for transport of ~9.5 Bcf/d out of the basin LNG & Mexico Exports Power Generation Southeast & Gulf Coast Significant incremental growth from power generation coal conversions Gulf Coast regional demand projected to increase 19 Bcf/d by 2025 East Tennessee Natural Gas Shipper Meeting 10

11 New England Market Driven Projects Algonquin Expansions ME QC Maritimes & Northeast NS VT MA Project Status: AIM in-service NH Atlantic Bridge in execution received FERC Certificate January 25 Regional Supplies NY MA CT RI Algonquin Salem Lateral Salem Lateral in-service Project Volume (MMcf/d) Target In-Service AIM 342 1Q17* Atlantic Bridge 133 2H17 Salem Lateral 115 4Q16* *Placed in-service PA Algonquin Expansions Texas Eastern NJ East Tennessee Natural Gas Shipper Meeting 11

12 Access Northeast Algonquin and Maritimes systems directly connect to 60% of ISO-NE s gas-fired generators New gas-fired generators totaling ~2,570 MW attaching to Algonquin by 2019 Market area LNG peak shaving Texas Eastern Algonquin NEW YORK Maritimes & Northeast PORTLAND BOSTON Project Scope: ~$3 billion (100%); 900 MMcf/d Joint development with Eversource and National Grid Project Need: New England electric power market continues to become more gas dependent Natural gas generation has increased from 15% to 50% market share since 2000 Likely to rise further with Brayton Point, Pilgrim retirements, new gas-fired facilities coming on line Additional natural gas infrastructure is needed to serve growing gas generation Access Northeast is best positioned to meet growing natural gas demand needs in New England A solution for New England must be found East Tennessee Natural Gas Shipper Meeting 12

13 Northeast Expansions on Texas Eastern MARCELLUS PennEast PA MD NY Marcellus to Market NJ Greater Philadelphia Expansion Bayway Lateral Continued opportunities on Texas Eastern to link supply to growing Northeast markets In Execution: Bayway Lateral 300 MMcf/d lateral expansion to serve Bayway Refinery and Linden Cogen PennEast 1.1 Bcf/d In Development: Marcellus to Market Texas Eastern expansion up to 200 MMcf/d from Lambertville in development Greater Philadelphia Expansion Project incremental lateral capacity to serve growing power, industrial and LDC market in development East Tennessee Natural Gas Shipper Meeting 13

14 NEXUS and TEAL QC ON Connecting Marcellus and Utica supplies to LDCs, power generators and industrials in Ohio, Michigan, Chicago and Ontario Project Scope: MI Dawn Hub TORONTO NY U.S. Northeast NEXUS: 1.5 Bcf/d design capacity, ~255 miles, 36 pipeline TEAL: 950 MMcf/d expansion of Texas Eastern and reversal of OPEN line to deliver into NEXUS Supply Sources: Kensington Processing Plant, Tennessee Gas, Texas Eastern Pipeline Interconnects: DETROIT MARCELLUS / UTICA SUPPLY PA DTE Gas, Vector, ANR, PEPL, Great Lakes Transmission, Union Gas, Texas Eastern, Tennessee Gas Project Status: NEXUS OH TEAL Texas Eastern Filed FERC application November 2015 OEB approval of Union Gas and Enbridge agreements Received favorable FEIS from FERC November 2016 On target for in-service 2H17 East Tennessee Natural Gas Shipper Meeting 14

15 Access South, Adair Southwest and Lebanon Extension Projects Lebanon Extension Lebanon Kosciusko Access South Adair Co. KY Uniontown Adair Southwest Delivering Appalachian shale supply to markets in the Midwest and Southeast Combined Projects Scope: Capacity: 622 MMcf/d Access South: 320 MMcf/d Adair Southwest: 200 MMcf/d Lebanon Extension: 102 MMcf/d CapEx: $450MM Timeline: FERC certificate received December 2016 On target for in-service 2H17 East Tennessee Natural Gas Shipper Meeting 15

16 Gulf Markets Expansion and Stratton Ridge UTICA MARCELLUS Expanding Texas Eastern to serve Gulf Coast LNG markets M2 Gulf Markets Expansion: Under construction Phase 1: in-service Phase 2: target in service 3Q17 Stratton Ridge M1 Gulf Markets Stratton Ridge: Transporting Texas Eastern M1, East Texas and South Texas gas to Freeport LNG s Stratton Ridge storage facility Expect 1H17 FERC filing Targeting 1H19 in-service Project Volume (MMcf/d) Target In-Service Gulf Markets /17 Stratton Ridge 322 1H19 East Tennessee Natural Gas Shipper Meeting 16

17 Texas Eastern STEP and Valley Crossing Pipeline TEXAS EASTERN Nueces Brownsville VIDOR South Texas Expansion Project New intrastate pipeline to export reliable natural gas supply to meet Mexico s growing electric generation needs STEP Project: Texas Eastern mainline reversal Customer: Comisión Federal de Electricidad Capacity: 400 MMcf/d FERC filing target: 4Q16 Expect FERC certificate: 4Q17 In-Service: 4Q18 Valley Crossing Project: Greenfield intrastate, 170 miles of 42 and 48 pipeline, 258,000 HP, 8 receipt meters, export meter to Mexico Infraestructura Marina del Golfo Customer: Comisión Federal de Electricidad Capacity: 2.6 Bcf/d Mainline, 5 Bcf/d Nueces Header CapEx: $1.5B Commence construction 1H17 In-Service: 4Q18 East Tennessee Natural Gas Shipper Meeting 17

18 Loudon and Sabal Trail Loudon Sabal Trail Serving Southeast power generation growth Loudon: East Tennessee expansion to serve a power plant conversion from coal to natural gas In-service September 2016 Sabal Trail: 515-mile greenfield pipeline to provide incremental supply to FPL and Duke Energy Joint venture with NextEra and Duke Energy Under construction Phase I in-service end of 2Q17 Project Volume (MMcf/d) Target In-Service Loudon 40 Sept 16 Sabal Trail 1,075 2Q17 East Tennessee Natural Gas Shipper Meeting 18

19 Winter Operations Presentation Al Monaco Mark MacPherson Director Capacity Services & Scheduling

20 Scheduled Supply Diversity Receipt Nov Mar 2015 Nov Mar 2016 Nov Mar 2017 Total Qty(BCF) Percentage Total Qty (BCF) Percentage Total Qty (BCF) Percentage Jewell Ridge 17, % 18, % 19, % Nora 19, % 19, % 18, % Rogersville 1, % 1, % 1, % Transco % 0 0.0% % East of Topside Total 39,093 35% 39,459 36% 39,203 35% Columbia Gulf % % % Midwestern % % % Morgan County 1, % 1, % 1, % Other % % % Sonat 2, % 2, % 4, % Tennessee 44, % 37, % 34, % TETLP 22, % 27, % 32, % West of Topside Total 71,020 65% 69,962 64% 73,223 65% East Tennessee Natural Gas Shipper Meeting 20

21 Top 25 Days of Scheduled Quantities 2015, 2016, 2017 W16-17 W15-16 East Tennessee Natural Gas Shipper Meeting 21

22 Dth Load Duration Curves November March EHDD Seasonal Accumulation: 3124 Previous Year: Year Average: 3795 W16-17 W15-16 Days East Tennessee Natural Gas Shipper Meeting 22

23 Monthly Deliveries November March East Tennessee Natural Gas Shipper Meeting 23

24 Power vs Non-Power Deliveries November March East Tennessee Natural Gas Shipper Meeting 24

25 Restrictions - Winter Location W16-17 W15-16 Seal Only Restrictions Seal Only Restrictions Boyds Creek Calhoun (East to West) Dixon Springs Flatwoods (East to West) Fordtown (East to West) Lewisburg Madisonville (East to West) Topside South Topside East Tracy City East Tennessee Natural Gas Shipper Meeting 25

26 Maintenance & Scheduling Update Presentation Mark MacPherson Mark MacPherson Director Capacity Services & Scheduling

27 2017 Pipeline Outages Station Outage Type Description Ln Tracy City to Ooltewah VS 4 Pipeline Outage April 18-22, Tracy City reduced to 0 Dth/d Ln Estill Springs to Tracy City VS 4 Ln Flatwoods to Fordtown Ln Nora to EOL Topside to Madisonville 12 Line Madisonville to Ooltewah 12 Line Pipeline Outage Cleaner Cleaning runs Cleaner, ILI runs and Repair dates Cleaner, ILI runs and Repair dates April 23-26, Tracy City reduced to 0 Dth/d Meter will be unavailable during outage May 6, Meter TVA will be required to shut-in for the duration of the run June, September and December (TBD 1 day each), Meter Appalachian Natural Gas/Clinch River will be required to shut-in for the duration of the tool run Cleaner July 25, capacity Topside South 75,000 Dth/d, ILI August 15, capacity Topside South 60,000 Dth/d, Potential repair dates October Cleaner July 26, capacity Madisonville 58,000 Dth/d, ILI August 10, capacity Madisonville 54,000 Dth/d, Potential repair dates October 3-22 East Tennessee Natural Gas Shipper Meeting 27

28 2017 Compressor Maintenance Boyds Creek April / May TBD Capacity ~120,000 Dth/d Wartburg June / July TBD 21 days Capacity ~304,000 Dth/d Flatwoods October 2-6 Capacity ~88,000 Dth/d Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec ETNG/TE Interconnect (Mt. Pleasant) April / May TBD (1 day) Capacity limited to 45,000 Dth/d Boyds Creek Sept and Capacity ~120,000 Dth/d East Tennessee Natural Gas Shipper Meeting 28

29 Let s take a break

30 Gas Commodity Price Trends will Impact Future ETNG Expansions Bill Wickman ETNG Strategic Business Development

31 Marcellus/Utica Market Penetration Future Supply Mix Trends 2010 Current 2025 Mid-Atlantic 33% 96% 99% Southeast excluding Florida 2% 15% 65% Source: ICF Data East Tennessee Natural Gas Shipper Meeting 31

32 Projected Appalachian Volumes Flowing South Bcf/d Source: Wood Mackenzie Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Pennsylvania/Ohio/West Virginia to Gulf Coast Pennsylvania/Ohio/West Virginia to Kentucky/Tennessee Pennsylvania/Ohio/West Virginia to South Atlantic East Tennessee Natural Gas Shipper Meeting 32

33 Projected Pricing $/MMBtu $6.50 $6.00 $5.50 $5.00 TETCO M1 Transco Z5 Tenn 500 Leg $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Source: Wood Mackenzie East Tennessee Natural Gas Shipper Meeting 33

34 (Receipts) Deliveries Net Scheduled Volume at Cascade Creek January 1, March 31, , , , ,000 Net Schedule Volume 100,000 Trendline 0 (100,000) 1/1/2014 7/1/2014 1/1/2015 7/1/2015 1/1/2016 7/1/2016 1/1/2017 East Tennessee Natural Gas Shipper Meeting 34

35 Physical Flows at Cascade Creek January 1, March 31, 2017 East Tennessee Natural Gas Shipper Meeting 35

36 East Tennessee Projects: What s to come? Bill Wickman ETNG Strategic Business Development

37 East Tennessee Development Possibilities Mountain Valley Pipeline? Transco Cascade Creek? Transco Dalton? East Tennessee Natural Gas Shipper Meeting 37

38 Q&A