Spectra Energy - Infrastructure Expansion Solutions

Transcription

1 Maine International Trade Center Canada Day Program Spectra Energy - Infrastructure Expansion Solutions Greg Crisp General Manager, Business Development March 26, 2015

2 Safe Harbor Statement Some of the statements in this document concerning future company performance will be forward-looking 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 Spectra Energy s Form 10-K and other filings made with the SEC concerning factors that could cause those results to be different than contemplated in today's discussion. Reg G Disclosure In addition, today s discussion includes certain non-gaap financial measures as defined under SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP measures is available on our website. 2

3 Our Strong Portfolio of Assets Natural Gas Transmission Pipe: 19,000 mi Natural Gas Storage Capacity: ~300 Bcf Natural Gas Gathering Pipe: 70,000 mi Crude Transmission Pipe: 1,700 mi NGL Transmission Pipe: 1,500 mi SE Gas Processing Capacity: 3.8 Bcf/d 3Q14 DCP Gathered and Processed: 6.9 Tbtu/d 3Q14 DCP NGLs Produced: ~470 MBbl/d Distribution Pipe: 39,700 mi Union Gas Retail Customers: 1.4 million Gas storage facility Gas processing plant Propane terminal NGL storage Shale gas formations Crude storage Major oil pipeline terminal 3

4 Meeting New England and Atlantic Canada Natural Gas Infrastructure Needs Algonquin Maritimes & Northeast BOSTON $5.20 AGT Citygate 1 Texas Eastern Algonquin Maritimes & NE Millennium Iroquois Tennessee Gas Algonquin Expandable by 1.5 Bcf/d Texas Eastern NEW YORK $2.67 Market Zone 3 1,2 1. Average Monthly February 2015 January 2016 forward natural gas price ($/Dth) as of September M3 average trading at $0.50 discount to Henry Hub 4

5 Algonquin Incremental Market (AIM) Expansion Purpose: To provide growing New England demand with access to abundant regional natural gas supplies Project Scope: Provides 342 MMcf/d of additional capacity to move Marcellus production to Algonquin City Gates CapEx: $1 B Customers (15 year terms): LDC Affiliates of: UIL Holdings Northeast Utilities National Grid NiSource City of Norwich Middleborough Project Status: Received FERC certificate March 3, 2015 Commence construction 2Q15 In-service 2H16 5 Preliminary Facilities: Take up segments of 26 pipeline and replace with 42 ; one segment of 36 loop; reinforcement of existing laterals; construction of new lateral Horsepower additions and modifications at 5 existing compressor stations New meter station installations and modifications to existing meter stations

6 Atlantic Bridge Moving abundant, economic supplies of natural gas from the Marcellus & Utica to constrained New England & Atlantic Canadian markets Project Scope: Capacity: 222 MDth/d (As Pre-Filed) Customers: Precedent agreements executed with nine customers including local distribution companies and industrial users in New England and Atlantic Canada Project Status: File FERC Application 2H15 Estimated in-service: 2H17 Preliminary Facilities: New compressor station, upgrades of existing compressor stations and meter station modifications Pipeline looping and take-up and relay 6

7 project developers:

8 UTICA Access Northeast is a Tailored Solution for the Region s Electric Energy Needs Serves over 70% of New England generation Will provide fuel for 5,000 MW of electric generation MARCELLUS Texas Eastern Iroquois Algonquin Gas Transmission NEW YORK PORTLAND Maritimes & Northeast BOSTON Gas-fired power plant connected to the Access Northeast Project New England gas & electric markets served by Access Northeast Innovative, cost effective and environmentally responsible approach that will provide 0.9 Bcf /day of natural gas to power plants by: Upgrading existing pipelines Utilizing local natural gas storage Will increase access to plentiful natural gas supplies Ensuring energy security Lowering electric costs Reducing carbon emissions Provides rapid response capability a first of its kind service to electric generators that will: Meet peak winter day needs Back stop intermittent solar and wind renewable power Is quick to market, with a planned November 2018 in-service date

9 Benefits of Expanding Spectra Energy s Existing Pipelines Scalability Speed to Market Direct Delivery to End Use Market Access to Abundant and Diverse Supply Points Least Stakeholder Impact Expansions tailored to meet the specific needs of the market Energy consumers in New England benefit as capacity is placed in service Last Mile access to specific delivery points designed to meet peak day needs Projects into Algonquin have already been placed in service or in late stage execution more expansions to come Expansion of an existing pipeline has a smaller environmental impact and impacts fewer new landowners Better chance of execution success Ensure Reliability and Economic Benefits will Follow 9