Progress Authority Natural Gas Utilization Value-Added Presentation. October 29, 2015 Presented by Anthony J. Ventello, Executive Director

Transcription

1 Progress Authority Natural Gas Utilization Value-Added Presentation October 29, 2015 Presented by Anthony J. Ventello, Executive Director

2 INTRODUCTION Progress Authority Who We Are IDA/IDC Outlook on US industrial and commercial gas use and opportunities Bradford and Susquehanna Counties - #1 and #2 drilled upon counties Long-Term Solution valueadded utilization statewide in balance with Export Examples: Timber and Dairy Stats Home to 5,700 permitted and 2,300 spud wells Moving 6.5 bcf+ per day; single well producing mcf US production at all-time high Gas at sub $2.50/mlf IDC/IDA

3 DISTRIBUTION The Root of Vertical Integration (Unless at Wellhead)

4 Leatherstocking Gas Company Facts: Commercial 41 Public Authority 14 Residential 164 Total Active Meters 219 New Services, No Meter 103 Miles of Main 16.5 Local Gas for Local People $9.6 million invested To date 5 Office Jobs Many Local Businesses Used in Construction and Services

5 Endless Mountains Health Systems New Guthrie Troy Facility $51 million investment 182 Jobs Natural Gas Served Large Energy Savings $35 million investment 130 jobs Existing but value-added

6 Elk Lake School District Gas Wells on Campus Oil Conversion PUC allows for 2 connections Average Energy Savings of 30 40% or more

7 PIPELINE CONSTRUCTION

8 ENERGY GENERATION Broader Market Impact for Utilization

9 Panda Power Station, Asylum Township 829 megawatt combined cycle generation full time jobs; during construction Sister Plant Patriot, Lycoming County $900 million investment

10 IMG Roundtop Energy 20 MW Natural Gas Fired Power Generation facility interconnected to First Energy Penelec Transmission Direct interconnect to Williams Overfield Gas Gathering System for fuel supply, with gas supplied by Chief Oil and Gas Construction started in January 15 and commercial operation is scheduled for October 15 Technology provides quick start times and flexibility supporting grid security and reliability Plant provides wholesale energy, capacity and ancillary services to PJM electric market Up and running in October, 2015 Started second plant in Bradford County, Canton Township Beaver Dam Station $20 million in new investment Jobs 7+ Support Services Up and Running in 5 Minutes 7 proposed in the Northern Tier Confidential Material Currently 3 Other Generation Companies Doing Due Diligence

11 Combined Heat and Power (CHP) Electrical Generation/Steam/Thermal Demand Guthrie Healthcare GTP (Global Tungsten Powders) Cornell University in NY (ironic) JeldWen Re-started Their Existing Cogen Due to Pricing Proctor & Gamble Model Project Cheap Fuel Stock Rising Electrical Pricing Make Proforma Payback Feasible

12 Guthrie CHP Project CHP Plant at 2 megawatts Hospital CHP Plants can be approximately 75% efficient at primary fuel conversion to useful energy and, because they are located on site, have no/minimal transmission loss. Largest Regional Employer at 5,000+ CHP Plant Investment - $6 million Act 129 Rebate; ACE Grant 5 7 Year Payback Medical Record Energy Demand

13 megawatts Global Tungsten & Powders Corp. CHP Project Approximately $10 million in investment Supports 500 jobs $2 million rebate Act 129 Power buyback

14 Cornell University Combined Heat and Power Supports 12,842 Employees 21,600 Students Over 300 Buildings Serviced $180 Million Investment Made Anti-Natural Gas Positioning Conversion from Coal Built in 1922; 65,000 tons of Coal Per Year Two 15 megawatt generators 77% Operating Efficiency

15 CNG (Compressed Natural Gas)

16 CNG (Compressed Natural Gas) Public CNG fueling stations (fast fill) $1.5 million investment per station

17 Public Transportation

18 Private CNG fueling station Vehicles Trucks Compressions Units for well completion

19 Mehoopany, Wyoming County Model Manufacturing Dynamic

20 INDUSTRIAL UTILIZATION Clean Efficient Abundant Low cost Feed Stock Energy is at the Top of Common Concerns

21 GAS TO LIQUIDS

22 REV LNG (Liquified Natural Gas) Herrick Township, Bradford County (SWN) $10 Million Investment Non-Piped Distribution Reduction Demand Due To Gas Industry Slowdown New England Market Demand

23 Global Tungsten Powders Towanda Borough and Township, Bradford County Largest User of hydrogen on the East Coast Sintering metal purge furnaces Partnering Air Products and hydrogen facility Thermal Cracking of natural gas to make hydrogen used in manufacturing

24 Gas to Liquids GTL: Diesel Fuel Unleaded Gas Waxes Lube oils Other Products Methanol Several Companies investigating sites, products and investments Fuel Stock Never Cheaper vs Competition with Crude Oil Prices and High Cap Expenditure Sites Evaluated in Bradford and Susquehanna Counties

25 Eureka Resources Standing Stone Township, Bradford County Value-added from produced water 31 Employees Crystallization $30 Million of Investment Downstream products Broader Market Uses for Chlorides Road Salt

26 Paper Manufacturing Site Procter & Gamble Mehoopany Wyoming County Marcellus Gas Utilization Region s Largest Manufacturing Site at 3,000 employees Energy Intensive Industrial Campus of 90 Acres, owns 1,400 Acres Total Horizontally Drill Consume 800 billion kwhr (equivalent of 40,000 homes) Now 100% self-sufficient with cogeneration Off the Grid Sell 10 to 20 megawatts Back to the Grid Use 10 Billion Cubic Feet of Natural Gas/Year; Excess to Interstate Pipeline Reduced Per Unit Consumption of Energy by 30%; Will Hit 40% in 2 Years Receive Lease, Bonus and Royalties Transportation Savings on Natural Gas Plus Savings on Capacity, Compression and Other Supply Chain Reduction Efficiencies Developed 15 Gas Wells On-Site. Tied to Midstream and Interstate Pipeline Gas is Purer than Gulf Sources Tri-Generation So, they are CHP with electrical generation, steam, hot air (paper processing) and absorption. They power their fleet with CNG and have their own CNG station.

27 $50,000 Million Invested

28 DRILLING ON P & G CAMPUS All New P & G Opportunities Look at This Site First

29 HOUSING AND DOWNTOWN REVITALIZATION ACT 13 DCED FUNDED

30 Susquehanna County, Bridgewater Township Meadows at Tiffany Pines 40 Units of Housing Completely Occupied Natural Gas Served $11 million in investment HOUSING

31 HOUSING Towanda Terrace 400 Block Revitalization Bradford County, Towanda Borough Burned out furniture store revitalization 4 story commercial with 39 units of residential 230 space parking garage developed $15 million in investment Completion scheduled for December 2015; May 2017 for parking garage PHFA Housing Funds County Infrastructure Loan Via Act 13 Program Natural Gas Served

32 TOWANDA TERRACE

33 LOCATIONS Where It Can Happen Downstream: Site near interstate or substantial midstream Liquid distribution lines for export of products from site Rail served Infrastructure: Power/transmission lines Sewer Water Route 81 Corridor Analysis Target site assessment Energy corridor development Route 81 Corridor, Susquehanna County *Support the Development of the Keystone Energy Enhancement Act (KEEA Tax Abatements)

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35 500+ acres Power IBCF/day gas production

36 Diaz Manufacturing Relocation Bridgewater Township Susquehanna County Joint Infrastructure Development Gas, Public Water Distribution shared corridor Manufacturing Expansion Housing $1.6 million investment in infrastructure $12 million investment total 150 Job Impact Infrastructure Funding: Act 13 County Funds PA American Water Company Pennsylvania First Program Leatherstocking