TransCanada U.S. Pipelines Central ANR Pipeline, ANR Storage, and Great Lakes Gas

Transcription

1 TransCanada U.S. Pipelines Central ANR Pipeline, ANR Storage, and Great Lakes Gas SNAME Conference Great Lakes-Great Rivers Section February 13-14, 2013

2 Natural Gas Basics Players and Functions 1. Exploration and Production (E&P, Producers) 2. Midstream Operations (Gathering and Gas Processing) 3. Pipeline Transmission (Interstate and Intrastate Pipelines) 4. Gas Markets/Users (LDC s, Energy Marketers, End Users) 2

3 E&P/Producers Producers lease or buy surface acreage and mineral rights to explore for, drill and produce natural gas (and/or oil) Lands and Mineral Rights may be purchase/leased from Federal and State owned lands or private landowners Primary function is to explore, find, drill and produce natural gas/oil and sell to various users or markets Royalties are typically paid to the landowners based on gas or oil production sold 3

4 Midstream Company Operations Primary function is to gather production from multiple wells and provide a pipeline gathering system for aggregation of supply from various sources Typically provide for centralized gas processing and separation of natural gas from liquids and contaminants Impurities are removed and separated (water, Sulfur, CO2, and other matters) Oil and NGL liquids (ethane, propane, butane, etc.) are separated and shipped to markets via barge, rail, truck or liquids pipelines Pipeline Quality gas (nearly 100% Methane)is delivered to natural gas pipelines for subsequent transportation to market 4

5 Pipeline Transmission Network Interstate (FERC regulated) and Intrastate (State regulated) pipeline network delivers natural gas to user markets Interstate Pipelines DO NOT BUY and RESELL NATURAL GAS Primarily transporters of the gas owned/purchased by Shippers (customers) who hold capacity rights on the pipeline Pipelines transport gas from Point A (Receipt Points) to Point B (Delivery Points) Pipelines Interconnect with each other at points where their systems cross, essentially forming a grid network across the entire North American continent Pipelines often provide gas storage and other ancillary services such as balancing services, etc. on behalf of Shippers Pipelines are typically High Pressure ( PSIG) and Large Diameter (24 to 42 ) systems often with multiple parallel pipelines in the same corridor 5

6 Great Lakes Gas Transmission and the Midwest/Northeast Pipeline Transmission Grid 6

7 Natural Gas Markets and Gas Users Local Distribution Companies (LDC s/utilities) Distribution, sale and delivery of gas to local residential, commercial and industrial customers State PSC regulated (Gas Sales and Rates for service) Energy Marketing Companies Purchase gas directly from producers and Resell to various customers Often access multiple supply basins and hold capacity on multiple pipelines for gas transportation and delivery to customers Direct End Users Usually larger, more sophisticated gas users Gas fired Power Generation, large scale industrials, LNG/CNG companies Take gas directly from Pipeline due to higher pressure, gas capacity available, and economics (rather than paying for LDC service) 7

8 TransCanada Pipelines - Great Lakes Region TransCanada s Geographic Alignment of owned pipeline infrastructure serving the Great Lakes Region 8

9 TransCanada North American Pipeline Assets 35,500 US Pipelines Central miles of wholly owned natural gas pipeline Other Natural gas Pipelines Proposed Alaska Pipeline Proposed Mackenzie Gas Pipeline Foothills/BC GTN System Tuscarora North Baja Proposed In Development Oil Pipelines In Development Interests in an additional 7,000 miles of natural gas pipeline (partial ownership) Gas Storage 250 Bcf of regulated and 130 Bcf of non-regulated natural gas storage capacity Alberta System Canadian Mainline Bison Keystone Expansion Great Lakes Northern Border Unparalleled connections from traditional and emerging gas supply basins to growing markets PNGTS Iroquois ANR Keystone Oil Pipeline TQM Average daily volume of approximately 14 Bcf/d Keystone oil pipeline* 1.1 million Bbl/d * Phases 1 and 2 in operation; Phases 3 and 4 in development Tamazunchale 9

10 Linking Natural Gas Supply to Key Markets The TC pipeline network taps into virtually every major North American natural gas supply basin and provides our customers with unparalleled access to premium markets and gas supply optionality The vast TC pipeline network is also very well positioned to connect new sources of supply such as the shale gas reserves to growing markets Shale gas access includes: Barnett, Fayetteville, Haynesville, Bakken, and Marcellus/Utica areas 10

11 TransCanada - U.S. Pipelines Central ANR Pipeline, 10,600 miles, capacity of 6 Bcf per Day Great Lakes Gas Transmission, 2,100 miles, capacity of 2.3 Bcf per Day ANR Storage, 250 Bcf of regulated natural gas storage capacity; all located within Central and Northern Michigan 11

12 ANR Pipeline Company ANR Pipeline Company Originates in the traditional supply areas of TX/OK and the Gulf of Mexico; traverses 15 states 10,600 miles of pipeline Over 1 Million Compressor HP Peak Day Capacity of 6 Bcf/d Major Storage Operator (250 Bcf of Storage in Michigan) Provides access to many new Shale gas supply s 12

13 ANR Pipeline Company SW Interconnects TransWestern CenterPoint Oneok Westex EPNG NNG Wisconsin Wisconsin Gas Wisconsin Public Service Wisconsin Electric Alliant SWML Interconnects REX Perryville/Delhi CenterPoint Gulf South Gulf Crossing MEP/SESH/LIG SEML Interconnects Lebanon - TETCO, DTI, TCO Midwestern Gas Texas Gas Panhandle Eastern Chicago North Shore Peoples NICOR NIPSCO Memphis TVA SE Storage Egan Bobcat Pine Prairie Storage 250 Bcf Michigan MichCon Consumers SEMCO MGU ML3 CG&E DP&L Dawn Northern Ohio East Ohio Columbia of Ohio Ohio Valley Ohio Gas Indiana Gas SIGECO Major Interstate Deliveries Wisconsin Michigan Illinois Indiana Ohio Ontario, Canada Joliet and Lebanon Hubs SE and SW Area Markets Numerous Other Pipeline Companies SE Interconnects SNG, FGT, TGP Columbia Gulf Trunkline Transco Texas Gas Bridgeline Cypress 13

14 Great Lakes Gas Transmission Originating at Emerson, Manitoba - traverses Minnesota, Wisconsin, and Michigan Terminates at St. Clair, Michigan with deliveries to TransCanada into Dawn, Ontario (Port Huron/Sarnia) 2,100 miles; two 36 diameter, 974 Psig MAOP pipelines 14 compressor stations with combined 450,000 hp Peak capacity of 2.3 Bcf/d Over 60 receipt and/or delivery points including ANR Pipeline and others 14

15 Interconnects Pipeline interconnects directly with TransCanada, ANR Pipeline, and other pipeline companies as well as various utilities and LDC s located in: In Minnesota Minnesota Energy Resources City of Duluth, MN Otter Tail Power In Wisconsin NSP/Xcel (Minneapolis) Superior WL&P In Michigan MichCon Consumers Energy Detroit Edison Midland Cogeneration Venture SEMCO WEPCo Bluewater Gas Storage 15

16 ANR and GLGT Pipeline s Footprint Matches Up Well with Great Lakes Shipping 16

17 Gas Supply & Storage Opportunities WCSB Transport gas from Midcontinent, Gulf Coast, Rockies and new Shale Gas to Midwest markets LNG supplies to storage, user markets or LNG/ CNG terminals Future Gas Storage Development Great Lakes Pipeline LNG Michigan LNG LNG ANR Storage LNG Uinta Paradox Piceance San Juan Denver Anadarko Barnett Shale Woodford Fayetteville Shale Shale Arkoma Illinois ANR Pipeline Haynesville Shale Black Warrior Appalachian Ft. Worth Mississippi Salt Gulf Coast LNG 17

18 Thank You 18