WELCOME & INTRODUCTIONS

Transcription

1 WELCOME & INTRODUCTIONS Ron Jorgensen Vice-President, Operations & Gas Control 1

2 Agenda 8:30 a.m. Welcome and Introductions Ron Jorgensen 8:45 a.m. Meet the Pipeline President Micheal Dunn 9:10 a.m. Integrity Management 101 Doug Brunt 9:30 a.m. Southern System Available Capacity Jack Ahern 9:50 10:10 a.m. BREAK 10:10 a.m. Winter Outlook Greg Paige 10:25 a.m. Marketing Update Shelley Kendrick 10:40 a.m. Contracting Update David Reeder 10:50 a.m. Nominations Update Chad Campbell 11:00 a.m. Chat with Chad / Wrap-up Chad Campbell 11:15 a.m. ADJOURN 2

3 INTRODUCTIONS 3

4 MEET THE PIPELINE PRESIDENT Micheal Dunn Executive Vice-President, Questar Corporation and President, Questar Pipeline Company 4

5 QPC INTEGRITY MANAGEMENT ENSURING SAFETY AND RELIABILITY Doug Brunt Director Integrity Management 5

6 Elements of Integrity Management Risk Assessment Pipeline Inspections Integrity Management Damage Prevention 6

7 In-Line Inspection - Animation 7

8 In-Line Inspection - Considerations Smart tool must fit through the line Gas flow must be maintained at 3-5 MPH Calibration points (Above Ground Markers) placed every mile along the route during the run Questar s Shortest run 13 miles, 3.5 hours Questar s Longest run 196 miles, 40 hours 8

9 Integrity Assessment by Driver No DOT Requirements Miles, 19% Other Business Critical Miles, 9% 54% Complete DOT Required High Consequence Area (HCA) Assessments (49 CFR Part 192) 1,106.6 Miles, 41% 95% Complete Voluntary INGAA Commitment Moderate Consequence Area (MCA) Assessments (804.9 Miles, 30% 11% Complete 9

10 2015 and 2016 Assessment Schedule Company Line Number From To Pipe Diameter (Inches) Length (Miles) Next Scheduled Assessment QPC ML 022 Powder Wash Simon Stn /25/15 QPC ML 022 Simon Stn Nightingale Station /09/15 QPC ML 041 Boarding House Payson Gate /29/15 QPC JTL 113 Elberta Current Creek Plant /19/15 QPC ML 040 Petes Wash Fidlar Station /30/15 QST ML QST Red Mesa Cameron /24/15 QST ML QST 20" / 12" Junction Red Mesa /08/15 QPC ML 040 Blind Canyon Gate Price Station /19/16 QPC ML 104 Thistle Compressor Elberta (Kern River) /10/16 QPC ML 048 South Lake ML48/60 Junction /07/16 QPC ML 060 ML 48 - Woodruff Hyrum Gate /31/16 10

11 2015 Pipeline Inspections- QPC ML22 Simon to Nightingale 57.9 miles, 20 July 9, 2015 JTL113 ML104 to Current Creek 13.4 miles, 20, (Potential AC Corrosion) Aug 18, 2015 ML41 Boardinghouse to Payson 38.7 miles, 18 July 29, 2015 ML22 Powder Wash to Simon 16.5 miles, 20 June 25, 2015 ML40 Petes Wash to Fidlar 33.7 miles, 20 September 30,

12 2015 Pipeline Inspections - QST QST Red Mesa to Cameron 149 miles, 16 September 24, 2015 QST 20 /12 Junction to Red Mesa 58.9 miles, 12 October 8,

13 2016 Pipeline Inspections- QPC ML48 South Lake to ML48/60 Junction 27.6 miles, 12 ML60 ML48 Woodruff to Hyrum Gate 39.2 miles, 20 ML104 Thistle Compressor to Elberta (Kern River) 37.9 miles, 24 ML40 Blind Canyon Gate to Price 41.9 miles, 20 13

14 Launchers / Receivers 14

15 Required Modifications Main Line Valves 15

16 Chemical Cleaning Tools Magnet Pig Gauge Plate Pig Brush Pig 16

17 Deformation Tool 17

18 Corrosion Tool MFL (Magnetic Flux Leakage) 18

19 Bottom Dent Construction Related 19

20 External Corrosion Coating Damage 20

21 Damage Prevention Participate in state one-call programs Sponsor and participate in out-reach programs to excavators and contractors for safe digging practices 100% standby inspection by company personnel for all excavation within proximity to our lines Parallel construction agreements with foreign lines for standby and safe digging practice 21

22 Integrity Management Report Card Favorable Compliance Record No fines, penalties, compliance actions Replacement Program ML3 Replacement final year of a 5 year program to replace 30 miles of legacy pipe. Future $5M to $10M / year in replacements 22

23 Ensuring Safety and Reliability - Keys to Success Know the pipeline system Understand the associated risks Apply appropriate strategies to minimize risk Have and follow good procedures Continually learn, be flexible, and adapt Communicate and coordinate with customers 23

24 QUESTIONS? 24

25 SOUTHERN SYSTEM AVAILABLE CAPACITY Jack Ahern Director of System and Reservoir Engineering 25

26 Southern System Available Capacity Questar Pipeline has unsold capacity available Receipt Location West of Fidlar West of Fidlar West of Fidlar West of Fidlar Delivery Location Payson / Goshen Payson / Goshen Payson / Goshen Payson / Goshen Unsubscribed Capacity Effective Gas Day End Effective Gas Day 30,000 11/1/ /31/ ,000 11/1/2016 2/6/ ,000 2/7/ /31/2017 2,000 11/1/ /31/2019 Source: 26

27 Price Area to Goshen Due to observed production declines in the Price area affecting transport capacity, QPC seeks options to sustain or expand transportation from this area Interested Customers should contact their Marketing representative Seeking Customer interest in Price area to Payson / Goshen ML 80 GOSHEN FIDLAR WHITE RIVER HUB ML 103 ML 104 PRICE, UT 27

28 Southern System Expansion Planned Southern System expansion Incremental 80 MDth/d from Fidlar to Payson / Goshen Capacity for 35 MDth/d from WRH to Fidlar (18 MDth/d unsold + 17 MDth/d incremental = 35 MDth/d) Incremental 20 MDth/d from Clay Basin to Fidlar Incremental 80 MDth/d Fidlar to Payson / Goshen ML 80 Incremental 20 MDth/d Clay Basin to Fidlar GOSHEN FIDLAR WHITE RIVER HUB ML 103 ML MDth/d WRH to Fidlar 28

29 Potential Options - Southern Expansion Note: Some options may require additional expansion projects ROBERSON KANDA / COLEMAN / NIGHTINGALE Northern System Receipts to Fidlar Clay Basin to Fidlar CLAY BASIN ML 80 White River Hub to Fidlar, Clay Basin, Overthrust, Roberson, Ruby, Wasatch Front FIDLAR GOSHEN WHITE RIVER HUB ML 103 ML

30 Implications for Capacity Holders Firm shippers transporting primary to primary will not be impacted by the capacity changes. Firm shippers should try to nominate their capacity from Primary to Primary (P2P). Shippers requesting amendments or flex nominations on QPC s southern system may want to consult the QPC Constraint Point map on PipeViewer. Shippers without access to PipeViewer should consult their Marketing representative 30

31 Summary Existing capacity for sale Southern System to Payson / Goshen White River Hub to Fidlar Deliveries to Kern River (Roberson) or Ruby (Topaz) Deliveries to Wasatch Front Planning several potential expansions Fidlar to Payson / Goshen Northern Receipt Points to the Wasatch Front White River Hub to the Payson/Goshen or Wasatch Front Deliveries to White River Hub and to Northwest Pipeline Overthrust to Wasatch Front Interested Customers should contact their Marketing representative 31

32 QUESTIONS? 32

33 WINTER OUTLOOK Greg Paige General Manager, Gas Management 33

34 Clay Basin Injection Test: Key Dates Sept 18 Oct 3-5 Oct 6 Oct 7 OFO Letters issued to all FSS holders. Injection only for reservoir conditioning; No Withdrawal noms accepted; Transfer noms OK. 200 mmcf/d (207 Mdth/d) injection. 250 mmcf/d (259 Mdth/d) injection. Oct 8 15 Reservoir shut-in. Only transfer noms accepted. Oct 16 Return to normal service. Injection and withdrawal available. 34

35 Historical Retrospective precipitation was less than the historical average Last year was slightly warmer than the historical average QGC experienced record send out on December 30, 2014 Scheduled Coalville point 2 days Scheduled Clay Basin net injection (Entire Basin) 13 days Scheduled Clay Basin net withdrawal (NPC side) 20 days Scheduled Clay Basin net injection (NPC side) 6 days 35

36 Winter Forecasts There is an active southern jet stream with a super El- Nino will lead to plenty of moisture and lots of mountain snow expect below normal temperatures due to rain, snow and cloud cover LiveWeatherBlogs.com paraphrased NOAA expects an equal chance of high, average or low precipitation and high, average or low temperatures in the November to February time frame. They also expect a strong El-Nino in late autumn which will slowly weaken through the winter paraphrased 36

37 Weather Conclusions Based on current winter forecasts, it s reasonable to believe that this heating season will be similar to last year. Most nomination reductions occur during the transition from warm to cold weather due to greater use of firm capacity rights. 37

38 Leading Indicator: Weather Forecasts One of the best tools for customers is simply the local weather forecast on the nightly news. Key information is the mean temperature and expected wind speed and direction. As the mean temperature drops to the mid-20 s and below along the Wasatch Front, the likelihood of scheduling cuts increases Higher wind speeds mean increased wind chill effect Temperatures and winds in the producing areas of Wyoming and central Utah indicate potential freeze offs While QPC can temporarily carry some supply loss, freeze offs are a significant contributor to supply reductions Please contact your suppliers prior to a cold event to ensure they are prepared and that supplies will be available 38

39 Leading Indicator: EBB Message When scheduling a constraint point that will have major impact to the Wasatch Front, QPC will post an EBB message similar to the following in advance of the expected weather: Due to unusually cold weather conditions forecasted along the Wasatch Front, Questar Pipeline is advising customers that nominations through the WF/Coalville scheduling point are expected to exceed the capacity of 850,000 Dth/d (see Constraint Point Map). Customers are encouraged to line up nominations with primary receipt to primary delivery or cuts may be experienced. Shippers are also encouraged to contact their source production/supplier to ensure that facilities are ready for the unusually cold weather. This pro-active effort may help minimize cuts due to shortages. Customers with questions should contact their Scheduling representative. 39

40 Leading and Current Day Indicator Constraint Point Map 40

41 Scheduling Alternatives to the Wasatch Front When capacity to the Wasatch Front is constrained, particularly at Coalville or on the Southern System, options to re-path nominations to the Wasatch Front will be very limited or non-existent. QPC capacity can be used to make deliveries to the Wasatch Front through Kern River delivery points: Enter your nominations on Kern River with a receipt at Roberson Use your Questar capacity to re-path the delivery to a Kern River MAP point for the next open cycle MAP 388 Roberson thru Kanda Questar will use its off-system capacity to Kern River interconnects off Overthrust Pipeline There is an incremental charge for this service Delivery locations at Painter or Ham s Fork if needed 41

42 QUESTIONS? 42

43 MARKETING UPDATE Shelley Wright Kendrick General Manager, Marketing, Contracting & Business Development 43

44 Agenda Production Forecast Pipeline Capacity Western Market Growth Potential Questar Pipeline Expansion Opportunities Overthrust Pipeline Expansion Opportunities Available Firm Transportation Transportation Discounts Customer Service Improvement 44

45 Production Shifting to the Northeast 45

46 Shift In Pricing Fundamentals 46

47 New Infrastructure Coming Online 47

48 $/MMBtu Bcf/d Room for Rockies Exports Bentek expects 6 Bcf/d of available Rockies Export Capacity $ $ $ $8.00 $ $ $ $0.00 Exports Capacity Predicted Exports Henry - History CIG - History Henry - Forward CIG - Forward (Platts M2MS forward curve)

49 \ PROJECT STATISTCS PROJECT NAME IN-SERVICE Dth/d Magnida Fertilizer ,000 Naughton Plant Conversion* ,000 Kalama (Methanol Export) ,000 Port Westward (Methanol Export) ,000 Oregon LNG Jordan Cove Port of Tacoma Methanol Export TransAlta Plant Kalama Methanol Export Port Westward Methanol Export Port of Tacoma (Methanol Export) ,000 Jordan Cove ,200,000 IPP Combined Cycle Power Plant* ,000 TransAlta Coal Plant Conversion ,000 Oregon LNG ,300,000 MALIN OPAL Magnida Fertilizer Naughton Plant Jim Bridger Plant Deseret Power* ,000 Jim Bridger Power Plant* ,600 GOSHEN *Potential direct connect PIPELINES IPP Plant Deseret Power Plant WHITE RIVER HUB Questar Pipeline Company Colorado Interstate Gas Kern River Gas Transmission Ruby Pipeline Rockies Express Pipeline Northwest Pipeline Wyoming Interstate Company BLANCO

50 Project Name: Fidlar Compression Expansion Questar Pipeline Overthrust Pipeline Total Capacity 80 MDth/d Open Season 3 rd Quarter 2015 GOSHEN FIDLAR WHITE RIVER HUB Additional 10,915 BHP (Taurus 70) 50 50

51 WIC REX Overthrust Pipeline: Expansion Options for large end users in the Pacific Northwest (Jan 1, 2018) Restage Compression New Compression Upgrade Measurement Potential Expansion Existing Long Term Unsold Incremental Capacity Created Total Capacity Receipts Project Description / End Market Served Scenario #1 429,000 Dth/d 0 Dth/d 429,000 Dth/d Wamsutter: 293 MDth/d Rock Springs: 429 MDth/d Meter Upgrades, can serve the Methanol Plants in Washington Scenario #2 429,000 Dth/d 282,000 Dth/d 711,000 Dth/d Wamsutter: 293 MDth/d Rock Springs: 510 MDth/d Restage Compression & Measurement Upgrades; can serve LNG projects & Methanol projects Scenario #3 429,000 Dth/d 592,000 Dth/d 1,021,000 Dth/d Wamsutter: 740 MDth/d Rock Springs: 1021 MDth/d Restage Compression, Meter Upgrades, Additional Compression Units; can serve LNG projects & Methanol Plants 51

52 J.L. 47 / 138 M.L.80 M.L.58 QGC IDAHO Hyrum Gate M South Lake WYOMING Whitney Canyon M NPC 61,960 Leroy S QOPC M 4,130 M Hams Fork Roberson Creek M 61,690 48,380 Eakin 10,130 KANDA/COLEMAN SUMMARY Nitchie Gulch to WIC, CIG & QOPC West of Nightingale to WIC, CIG & QOPC East of Nightingale to WIC, CIG & QOPC NPC 150,000 M XO-16 QOPC 31,620 M C Kanda/Coleman C Nightingale CIG WIC 25,290 48,380 16,160 0 Wamsutter M M Skull Creek M Dripping Rock Goshen QGC QGC QGC Sunset Gate M M Porters Lane M Little Mountain Nephi City M S Coalville QGC M C Payson M Gate QGC Indianola M 0 M Thistle 2 C Thistle Chalk Creek S UTAH S:\Engineering - QPC\SystemEngineering\Unsold_Long Term... Updated: 8/25/2015 8:01:01 AM S Clay Basin CIG - Colorado Interstate Gas Co KRGT - Kern River Gas Transmission Co. QOPC - Questar Overthrust Pipeline Co. QGC - Questar Gas Company TCGT - TransColorado Gas Transmission NPC - Northwest Pipeline Corp. RMNG - Rocky Mountain Natural Gas WIC - Wyoming Interstate Co., Ltd. WGPC - Williams Gas Pipeline Central. WRH- White River Hub, LLC. Simon Dragon Trail 0 M C S C 18,530 Blind 0 Price 0 Canyon M.L.40 15,350 M 18,000 C C M.L.104 Fidlar 18,550 0 Oak Natural WRH M Spring 224,290 Buttes C PIPELINE ABBREVIATIONS CO2 Plant Long Term Unsold Firm Capacity October 2015 Altamont Myton 10,350 C C 3,100 LEGEND State Line C C TCGT Volume in Dth/d Delivery Point Meter Station Main Line Compressor Station Storage Facilities 7,340 COLORADO 13,240 M Rifle Connecting Pipelines M Atmos Energy RMNG 7,500

53 Hams Fork (KRGT) Hams Fork Meter Capacity 7,300 M JL 95 Naughton (QPC) Roberson Creek (KRGT) Ruby Pipeline M M 113,000 M OPAL C 294,300 Whitney Canyon M Painter (KRGT) M M S Clear Creek (CLSC) 100, , ,000 M Eakin (QPC) 38, ,000 52,880 50, ,460 M XO-16 (QPC) 50, ,460 WIC M C M QPC Rock Springs 50,000 Point Of Rocks C 252,840 WIC M Wamsutter REX Long Term Unsold Firm Capacity October M C S LEGEND Volume in Dth/d Delivery Point Meter Station Main Line Compressor Station Storage Facilities PIPELINE ABBREVIATIONS KRGT - Kern River Gas Transmission Co. QPC - Questar Pipeline Co. WIC - Wyoming Interstate Co., Ltd. REX - Rockies Express Pipeline CLSC- Clear Creek Storage Company, L.L.C S:\Engineering - QPC\SystemEngineering\Unsold_Long Term... Updated: 8/25/2015 8:03:35 AM Connecting Pipelines

54 Transportation Discounts: Firm and IT Questar Pipeline Company Firm Discounts: June October 2015 Deliveries to: Kanda/WIC, Kanda/CIG, QPC to REX $0.065/Dth/d Deliveries to: Roberson thru Kanda, Hams Fork $0.09/Dth/d Interruptible Discounts: September 2015 Deliveries to: Goshen, Kanda/WIC, Kanda/CIG $0.07/Dth/d Deliveries to: QPC/REX, Roberson thru Kanda and Hams Fork $0.10/Dth/d Overthrust Pipeline Company Firm Discounts: May October 2015 Deliveries to: Ruby Topaz, Hams Fork, Roberson Creek, Ryckman Creek and QOP/KRGT Painter $0.0375/Dth/d Interruptible Discounts: September 2015 Deliveries to: Ruby Topaz, Hams Fork, Roberson Creek, Ryckman Creek and QOP/KRGT Painter $0.045/Dth/d 54

55 Customer Service Improvement We highly value our customers and the relationships established Goal to improve customer service and ensure customer needs are met QPC to participate in 2016 Mastio Multi-Client Study Mastio to perform survey and data collection November 2015 through mid-january Develop action items and present at March 2016 customer meeting Goal: Continuous improvement for top 10 ranking We appreciate your participation in the survey and value your input Please let us know what we can do to improve! 55

56 QUESTIONS? 56

57 CONTRACTING David Reeder Supervisor, Contracting 57

58 Meet our Team 58

59 Services Access agreements and new user setup Credit Background EDI setup User security Contract Administration New Capacity Amendments Capacity Release Contract Management Transportation/Storage Special Agreements Web Notices Customer Service 59

60 Upcoming Contract Enhancements New Citrix Login New URL Redirect from nac.questar.com Uses Citrix Net Scaler Receiver License change for Questar Quick initial configuration Each user must have their own I.D. Demo 60

61 Enhancements Cont d Capacity Release Defaulted text for Recall/Reput 61

62 Enhancements Cont d Enhanced approval process Submitted and Pending Approval Approved and Biddable Contract attached to Awarded Capacity notification 62

63 QUESTIONS? 63

64 SCHEDULING UPDATES Chad Campbell Supervisor, Scheduling and Allocations 64

65 2015/2016 QuestLine Updates Updated QuestLine system - November 2015 Implement NAESB 3.0 changes - April 1, 2016 New QuestLine web system - Mid

66 New NAESB 3.0 Timeline Cycle Nomination Confirmation Scheduled Quantity Begin Flow Timely 12:00 PM 3:30 PM 4:00 PM 8:00 AM Evening 5:00 PM 7:30 PM 8:00 PM 8:00 AM Intraday 1 9:00 AM 11:30 AM 12:00 PM 1:00 PM Intraday 2 1:30 PM 4:00 PM 4:30 PM 5:00 PM Intraday 3 6:00 PM 8:30 PM 9:00 PM 9:00 PM * All times listed above are MST 66

67 Customer Concerns 67

68 QPTM Web Based Design Objectives Enhance Customer Usability Customer Focused (Mastio Survey) Improved, contextual reporting Ability to quickly make minor business changes Improve navigation Pre-populate customers data Improve applications to support of mobile devices Wizards Technology Focused Develop application designed to stay relevant Take advantage of new development tools Mobile device technologies Eliminate Citrix Maintain response time Compliance Maintain NAESB compliance 68

69 QuestLine Web Changes 2016 Dashboard screen Improved reporting functionality Web based technology Supported on both Android and IOS devices Browser Based (I.E. 11, Chrome, Firefox and Safari) Auto save New look and feel but same great functionality Training (WebEx, test database, and one on one) 69

70 Dashboard 70

71 New Reporting 71

72 QUESTIONS? 72

73 Accuracy Customer Service CHAT WITH CHAD Hotline Feedback 73

74 WRAP UP 74

75 THANK YOU 75