NGA Regional Market Trends Forum. Steve Taake Manager - Gas Marketing May 3, 2018

Transcription

1 NGA Reginal Market Trends Frum Steve Taake Manager - Gas Marketing May 3, 2018

2 The Case fr LNG in New England In the near t mid-term, New England has a peaking gas supply issue; nt a baselad issue Even with current pipeline expansin plans, LNG has an imprtant rle t meet this peak demand Pipeline expansins are largely designed t meet LDC heating lad requirements; LNG prvides the necessary flexibility t meet bth LDC peaking and the needs f pwer generatin LNG prvides the necessary real-time vlume/pressure flexibility t accmmdate changes in system demand 2

3 2017 Price Highlights ISO-NE* Average annual electricity and gas prices are LOW. Secnd-Lwest since 2003" Secnd lwest annual average price f whlesale energy in 15 years: $33.94/MWh Secnd lwest annual natural gas price; $3.72/MMBtu August and June 2017 were amng the 10 lwest-price mnths since 2003: $23.77/MWh during August and $23.93/MWh during June Prices suggest there is nt a baselad issue 3

4 Th The Case fr LNG in New England e Everett Marine Everett Terminal: Marine Everett, Terminal: MA Peaking Service The Everett LNG Imprt Terminal aka Distrigas pened in 1971 as a peak shaving facility t help meet New England s natural gas demand Distrigas is the lngest-perating imprt terminal in the US, and the nly cntinuusly perating ne Strage capacity: 3.4 Bcf Vaprizatin capacity: 715 millin cubic feet/day sustainable 1 billin cubic feet/day maximum installed Trucking capacity: 100 millin cubic feet/day 4 Truck Racks Open 24 hurs a day 7 days per week 4

5 Everett Marine Terminal: Capability t serve key systems simultaneusly Tennessee Gas Pipeline PSIG Liquid delivery via truck/trailer 1 millin gals/day 100 MMSCF/D Algnquin Gas Pipeline PSIG Natinal Grid Greater Bstn distributin PSIG Bil-ff direct cnnectin Lcal distributin PSIG Mystic Statin (1,600 MW) direct cnnect PSIG 5 5

6 Winter LNG Recap Marine Terminal: Winter Recap This winter s peak day was Saturday, January 6 During the peak, the cmbined vapr sendut f the Everett and Canaprt facilities prvided New England with 1.21 Bcf f gas a vlume greater than the largest prpsed pipeline prject In additin, Everett laded ut 20 trucks r 18,600 MMBtu bring the ttal LNG cntributin t 1.23 Bcf This number des nt accunt fr lcal LDC vaprizatin Fr the winter seasn, the Everett and Canaprt facilities prvided New England pipeline system a ttal f 21.5 Bcf f gas; nwhere near the histric recrd f 60+ Bcf This number des nt accunt fr Mystic 8-9 gas r trucked LNG Additinal capacity is available even n peak days; existing facilities capacity shuld be used prir t building incremental capacity 6

7 Everett Marine Terminal: Winter Flexibility and Reliability Terminal: Winter Recap The terminal has inherent shrt-term flexibility in it s cnnectins t AGT, TGP, and Bstn Gas; Gas can be sent where it s needed the mst In the mid-term, the terminal can als adapt t extrardinary situatins like this winter s bmb cyclne where New England experienced tw weeks f sustained belw freezing temperatures During the bmb cyclne, ENGIE quickly adjusted and mved up inbund 2018 cargs t December and January t meet the unexpected demand bringing in fur cargs (~11 Bcf) arund that event alne! ENGIE quickly acquired tw additinal spt cargs which it brught in n behalf f custmers. Our wn peak day was January 6 th where we sent ut a ttal f 657,000 MMBtu Additinal gas was n hand and vaprizatin was available had we knwn if Mystic 8-9 was ging t be dispatched The ttal gas brught in fr this winter was 32.5 Bcf n 13 ships 7

8 Everett Marine Terminal: Facility Flexibility Installed Vaprizatin with redundancy is 1.04 Bcf/day Hurly capability int Algnquin Gas Transmissin: 19.2 MMSCF/hr Hurly capability int Tennessee Gas Pipeline: 20 MMSCF/hr Hurly capability int Natinal Grid: 13.4 MMSCF/hr Flexibility is helpful as Pwer Generatin Facilities lking fr uneven hurly deliveries 8

9 Ging Frward We re cntinuing t sign shrt and lng term cntracts fr Winter and Summer Firm Peaking Gas: Winter Firm Vapr and/r Liquid Services Cmbinatin Vapr/Liquid Services Summer LNG Refill Our custmer mix: LDC s t ensure reliable service fr their custmers Pwer Generatrs ISO-NE in light f Pay fr Perfrmance Marketers with AMA agreements fr LDC s We have recently extended cntracts fr ur firm transprtatin quantity n TGP/AGT We are cntinuing t serve the Mystic Pwer Plant 9

10 Final Thughts the Case fr LNG in New England Fundamentally, NE has a winter peaking prblem - true 47 years ag as tday ENGIE believes strngly that New England shuld first unlck ptential f underutilized existing natural gas infrastructure t help slve winter peak issue Lng term cntracts fr firm service rather than seasnal ISO-NE Winter Reliability Prgram rightly includes LNG as well as il, dual fuel, DR 20 Bcf f stred LNG in New England ISO-NE Pay fr Perfrmance prpsal shuld g a lng way tward reslving these issues Market shuld pursue plicy t ensure pipes full East t West t better assess real needs West t East New pipe slves baselad grwth issue; LNG slves peaking prblem. LNG can be ecnmically delivered t the New England market during peak perids prvided cmmitment is made with enugh time t facilitate lgistics The market needs prper mechanisms in place fr pwer generatrs t recver the cst f flexible fuel supply during peak demand perids LNG is available n a shrt-term, seasnal basis r n a lnger-term basis as needed 10