WEST to EAST PIPELINE PROJECT

Transcription

1 WEST to EAST PIPELINE PROJECT

2 Lake Ontario CANADA TransCanada Niagara Pendleton Empire Pipeline Chippawa EMPIRE CONNECTOR (NOV 2008) Lake Erie National Fuel Supply Corp. Independence Corning MILLENNIUM (NOV 2008) Tuscarora Storage NY Ellisburg TGP, DTI PA Lamont Leidy Transco TETCO (DTI) OH PA = Existing NFG Right of Way (New Pipeline) = New Right of Way (New Pipeline) ROCKIES EXPRESS (REX) Clarington Bristoria = Existing Pipeline = Existing NFGSC Storage Field = Proposed Expansion of Existing Storage

3 PRELIMINARY RATES Receipt/Delivery Points Clarington / Leidy Leidy / Corning Clarington / Corning $0.44 $0.48* $ $0.14* $ $0.62* * 100% Load Factor rate; excludes system fuel (currently 1.4%) NOTE: Rates subject to economics of final project scope (24 vs. 30 pipeline) as determined by Binding Open Season.

4 PROJECT FACT SHEET 324 miles of pipeline from Clarington, OH to Leidy and/or Corning, NY 42,000 HP: 3 4 proposed compressor stations along route Initial capacity expectations: - Designed to initially move 550, ,000 Dth/D of Rockies gas via 24 or 30 pipeline - Able to accommodate volumes from local production areas and Cove Point volumes arriving at Leidy (initial capacity of 150,000 Dth/D) - Readily expandable; existing shippers benefit from future expansions 75% of pipeline corridor is existing right of way NFGSC storage expansion in excess of 5 Bcf along path is expected Additional new storage development along route is likely

5 PROJECT HIGHLIGHTS LDCs and Marketers: Provides access to various long-term incremental gas supply sources (Rockies gas via REX to Clarington, Appalachian Production via NFGSC and others, Cove Point LNG at Leidy, etc.) Allows for reduced reliance on Gulf Coast supplies Mitigates risk associated with hurricane interruptions Creates access to potential storage development areas along route REX Shippers: Opens path to high demand markets and provides the flexibility to serve them Meets growing New England, New York City and Mid-Atlantic demand Provides link to Upstate NY markets via NFGSC and Empire Enhances access to Millennium, Empire, Transco, TCO, TGP, DTI, TETCO, and TCPL (Niagara) Presents large storage fill opportunity at Ellisburg, Leidy, and other areas Provides access to existing and proposed storage capacity along path

6 PROJECT HIGHLIGHTS (cont.) Millennium Shippers: Access to LNG supplies from Cove Point at Leidy Access to Rockies Express gas from Clarington Receipts from NFGSC at Independence or the Tuscarora Extension Receipts from Appalachian production Cove Point Shippers: Deliveries to Millennium via NFGSC at Independence or the Tuscarora Extension Deliveries to NFGSC storage and storage accessible via Millennium Pipeline Appalachian Production Shippers: Relief from summer on-system market constraints Deliveries at Leidy/Wharton to markets off Transco Deliveries to Millennium at Independence or the Tuscarora Extension

7 ESTIMATED TIMELINE Post Open Season Shipper Meetings Execute OS129 Precedent Agreements Binding Open Season Execute Precedent Agreement FERC Pre-Filing Process FERC Filing FERC Order In-Service Winter Winter Early 2008 Spring 2008 Summer/Fall 2008 Early 2009 Spring/Summer 2010 Summer/Fall 2011* * Some sections of the project may be placed in service prior to the estimated In-Service date.

8 THE WEST to EAST ADVANTAGE New route opens path to high demand and storage fill markets Strategic interconnects with other pipelines increase flexibility and create economic opportunities Availability of diverse gas supply sources New storage opportunities along path add value

9 CONTACT INFORMATION For more information on the West to East Pipeline Project, please contact us: National Fuel Gas Supply Corp Main Street Williamsville, NY Phone: Fax: Marketing Representatives: Joe Kolis: Terry Falsone: George Linder: www. nationalfuelgas.com/supply