Financial Benefits of Mobile Natural Gas

Transcription

1 Financial Benefits of Mobile Natural Gas CenterPoint Energy Mobile Energy Solutions Mobile June 26, 2017

2 CenterPoint Energy: Electric transmission and distribution utility in Houston (over 2.4M customers) Natural gas distribution utility in 6 states (over 3.5M customers) Competitive natural gas sales (CES) Enable Midstream (transmission pipeline) Intrastate pipeline (primarily in TX and LA) Mobile Energy Solutions (MES) 2

3 Mobile Energy Solutions MES specializes in the supply and delivery of portable natural gas for a variety of utility applications 3

4 We Do One Thing: Mobile Gas for Pipeline Support A division of CenterPoint Energy: Developed in regulated gas operations All Technicians are PHMSA - OQ certified Experts CNG and LNG Site Storage Natural Gas Supply Delivery and Logistics Odorization Turnkey service provider 20 Years 4

5 Customer Profiles Customer types include: Natural gas distribution utilities and municipalities Transmission pipelines Industrial and commercial customers 5

6 Applications for Temporary Gas Supply Portable Natural Gas Supply Applications: Pipeline integrity (planned outages) Supplemental gas supply for winter peak shaving and system pressure loss Emergency response (unplanned outages) Planned pipeline maintenance and construction outages Temporary supply for new developments waiting for a pipeline connection Start-up and commissioning of equipment and facilities 6

7 Fleet of Equipment CNG tube trailers (30 units) CNG farm tap mini-trailers (50) Units Portable compression (trailer fill in 60 minutes) CNG CNG cascades (10 Units) Natural gas dehydration Up To 700 Psig PLC Controlled Odorizer LNG 450 Mcf/h Vaporizer (Gas Fired) 250 Mcf/h Vaporizer (Gas Fired) 100 Mcf/h Vaporizer (Ambient) 7

8 MES Portable Pipeline Equipment LNG Equipment Pictures LNG ISO Container 10,000 gal. LNG Pump skids 350 psig Heated vaporizer 400,000 scfh up to 700 psig Ambient LNG vaporizer 100 Mcfh up to 230 psig CenterPoint Energy Information 8

9 CenterPoint Energy Mobile Energy Solutions Fleet and Expertise to serve the entire spectrum of natural gas utility supply needs: Individual rural farm taps Town and city gate stations and distribution systems Large industrial customers 9 9

10 Full Project Management Preplanning and Project Management: Defining the job requirements Location Start date Duration Max daily gas volume (Mcfd) Max hourly gas volume (Mcfh) Delivery pressure Conduct a site visit Complete turnkey project execution / operation Mobilization Set-up Gas delivery Demobilization 10

11 Full Project Design and Engineering Other Considerations: Key stakeholders Engineering, Operations, Gas Control, Contractors, Gas Marketers, Customers Gas Management Plan and Communications Overpressure Protection Remote Monitoring Risk Assessment 11

12 Success Factors Qualifications: Safety is #1! Always, everyday, everywhere! Over 100 years of combined CNG experience Over 100 years of combined LNG experience CNG and LNG certified technicians Technician Training PHMSA - Operator Qualification (OQ) Natural gas utility and pipeline safety LNG fire safety (Texas A&M training program) Technicians have CDL certification CNG and LNG licenses DOT security plan Proper insurance requirements Customer and employee safety are our #1 priorities 12

13 CNG CNG 13

14 CNG CNG: Quick response Smaller volumes No impact to customers No customer equipment modifications required Seamless transitions from and back to pipeline gas CNG comes odorized 170,000 Scf per Trailer 14

15 CNG General Layout

16 LNG 16

17 LNG LNG: Accommodates much higher flow rates Excellent for longer term projects More volume per tanker Minimal impact to downstream customers LNG is not odorized 820,000 Scf per Tanker 17

18 LNG General Layout

19 Winter Peak Demand Service Equipment on Site November 1 st March 31 st Multi Year contracts for seasonal coverage recommended Fixed Costs: Mobilization, Equipment Rental, De Mobilization Variable Costs: Labor, Per Diem, LNG Benefits: 100% Turn Key Service Reduced Transmission Capacity Costs New Equipment No Maintenance Costs No Permanent Site infrastructure to permit No need to hire contractors or train employees to operate or maintain the systems 19

20 CenterPoint Energy is a Gas Supplier WACOG Weighted Average Cost Of Gas The Gas and Transport costs of mobile gas supply are typically averaged into the total delivered gas costs for the entire rate base. PGA Purchase Gas Adjustments The total cost of Mobile Gas is usually passed through on the PGA to the end users Gas Supplier VS Construction Contractor Supplier of Gas and Mobile Pipeline Not a contractor that typically requires operational dollars 20

21 Cost Recovered immediately in PGA One Call to Make Direct Customer Impact Loss of Gas Supply Loss of Gas Sales Engineering intensive Operational Cost Continued Maintenance Costs Included in future integrity testing costs Cost Recovered in Next Rate Case Natural Gas Pipeline Interruptions Solution / Result Relight/Shut Off x x x x x x Lateral Line x x x x x Temporary Line x x x x Mobile Energy Solutions x x 21

22 Natural Gas Pipeline Interruptions Relight Outages directly impact customers and cause impacts at all levels of the company including; billing, legal, insurance, risk, operations, public relations and more. Loss of metered gas sales to all affected customers, reduced income Scheduling meter turn on and safety appliance inspections costs on average $75 to $125 if everything goes well. This process consumes resources and interrupts regular operations Engineering resources are utilized to track shut off and relight for all affected meters This cost must be recovered in the rate case, it hits the bottom line initially and hurt total profitability Mobile Energy Solutions can assist in avoiding relights. 22

23 Natural Gas Pipeline Interruptions Temporary Lines Engineering Intensive; routing, permitting, safety, line isolation and moving gas to temp line then back to primary line. Operational costs hiring contractors to install, run and monitor the line, risk Continued maintenance costs with the line isolation devices (stopples, etc.) The isolation devices will be included in future integrity testing schedules The total costs for this would be paid by the operational budget, effect profitability and be recovered in a future rate case process Mobile Energy Solutions can assist in avoiding the engineering, permitting and laying of temporary lines. 23

24 Natural Gas Pipeline Interruptions Lateral Line Engineering Intensive; routing, permitting, safety, line isolation and moving gas to lateral line then back to primary line after testing. Operational costs hiring contractors to install, run the line, risk of boring incident, risk of trenching incident Continued maintenance costs with the line isolation devices (stopples, etc.) and the largely unused pipeline The under utilized line and the one time used isolation devices will be included in future integrity testing schedules The total costs for this would be paid by the operational budget, effect profitability and may be recovered in a future rate case process Mobile Energy Solutions can assist in avoiding costly and largely unused lateral lines. 24

25 Natural Gas Pipeline Interruptions Mobile Energy Solutions Transportation and natural gas supplier All costs for this service are part of total natural gas transportation and supply Turn Key, One Call service provider Full Scale Provider with a Full Scale Fleet Close to Louisiana for operational efficiency and rapid response Competitive in total cost to all other solution. Reasonable and Prudent. 25

26 Thank You Mobile James Hulse Cell: