Building Pipelines Continuous Improvement (QA/QC) Business Environment The INGAA Foundation Inc. Building Interstate Natural Gas Pipelines Continuous Improvement (QA/QC) Workshop Houston, Texas March 25 26, 2009
Status of Projects Past Present Future
The Past: FERC Pipeline & HP Approvals 2000 2009 Capacity (Bcf/day) Miles of Pipe Compression (HP) Cost (Billions) 2000 2.3 1,102.8 151,096 0.8 2001 8.6 2,688.4 870,767 4.4 2002 5.8 1,590.5 560,064 3.1 2003 1.7 352.4 221,545 1.0 2004 8.1 619.3 83,538 1.2 2005 14.2 784.5 123,036 1.8 2006 14.0 1,340.5 329,657 3.9 2007 23.2 2,727.0 849,110 8.0 Source: FERC 2008 15.2 2,139.2 648,838 7.1 2009 1.6 90.3 0 0.5 TOTAL 94.7 13,434.9 3,837,651 31.8
Major Pipeline Projects Certificated January 2000 to February 2009 (MMcf/d) Northwest (162,113) NorthernStar (1,300) Tuscarora (96) Kern River (282) Source: FERC Northwest (224) Northwest(191) Questar (272,102,175) North Baja (500, 2,700) GTN (207) Questar Overthrust (550, 750) Kern River (135,886) El Paso (502) 94.74 BCF/D Total 13,435 Miles 21. CIG (282,92) 22. CIG (85,133,118,105,899) 23. TransColorado (125,300,250) 24. WIC (120,116,675,350,556,330,230) 25. El Paso (140) 26. Rendezvous (300) 27. Entrega (1,500) 28. Northwest (450) 29. Rockies Express West (1,800) 30. White River Hub (2,565) Dominion (700) 10 13 WBI Empire(250) 14 20 17 (80) 1 Millenium (525) 16 11 5 NFS/DTI (150) 8 26 24 27 7 18 TETCO (150, 150) 12 3 2 Trailblazer 29 6 15 30 (324) TETCO 9 19 (250) 4 8 621 23 Rockies Express East (1,800) Columbia Transco (165) 28 22 Cheyenne Equitrans (172, 100) Plains (560,170) Midwestern 25 (130) (120) East Tenn. (510) MarkWest (638) Center East Tenn. (86) East Tenn. (276) Southern Trails (120) Point (113,132) East Tenn. (170) Midcontinent (1,500) Transco (204,236,323) Transwestern (150,375,500) Southern/Magolia (82) El Paso (230,320,620,150) Trunkline (510) Center Point (1,237, 280) Discovery (150) Natural (200,300) Cameron Port Arthur (3,000) (1,500) Trunkline (200) Point Comfort (1,000) Gulf LNG (1,500) Tennessee (400,200,100) Dominion South (200) Cheniere Creole Trail (2,000) San Patricio (1,000) Trunkline(1,500) Kinder Morgan (3,395) Sonora (1,000) Golden Pass (2,500) Tennessee (320) Cheniere Sabine (2,600) Vista del Sol (1,100) Cheniere Corpus Christi (2,600) Southern (336,330) Florida Gas (239,270,100) Gulfstream (1,130, 345, 155) 1. Algonquin (285) 2. Islander East (285) 3. Iroquois (230,85, 100, 200) 4. Columbia (135,270) 5. Algonquin (140) 6. Transcontinental (105) 7. Transcontinental (130) 8. Transcontinental (100,142) 9. Columbia (94) 10. Maritimes (80,360,418) 11. Algonquin (301) 12. Tennessee (500) 13. Mill River (800) 14. Tennessee (136) 15. Texas Eastern (900) 16. Algonquin (325) 17. Algonquin (800) 18. Broadwater (1,000) 19. Mid-Atlantic (1,500) 20. Algonquin (140) Calypso (832) Ocean Express(842)
The Present Pending Filings at FERC 2,054 Miles @15.59 Bcf/d Source: FERC ************************************************************************************************************** [ICF Projections for 2009 for INGAA Foundation study 2449.2 miles] 5
Oregon Pipeline (Oregon LNG) (1,500) Pacific Connector (Williams Pacific) (1,000) Ruby Pipeline Project (Ruby) (1,500) 15.59 BCF/D Total 2,054 Miles Source: FERC Palomar Project (Palomar Gas) (1,300) Major Pipeline Projects Pending (MMcf/d) March 2009 Point of Rocks (Questar Overthrust) (300) Oasis Pipeline (600) Northern Lights 09-10 (Northern Natural) (136) Meeker to Cheyenne (Rockies Express) (200) South East Supply Header (360) Phase IV Expansion (CenterPoint) (274) Midcontinent Express (300) Fayetteville Compressor (Texas Gas) (2,300) Cameron Interstate (850) Mobile Bay South (Transcontinental) (253) 85 North Expansion (Transcontinental) (308) South System Expansion (Southern) (367) Phase VIII (Florida Gas) (820) Port Dolphin (1,200)
The Future? Pre Filing Filings at FERC 2,890 Miles @13.74 Bcf/d 2009/2010/2011??? On the Horizon 4,320 miles @ 38.69 Bcf/d ****************************************************************************** El Paso s Doug Foshee 19Bcf new capacity by 2015 [ICF Projections for INGAA Foundation study due in April, 2009]
Major Pipeline Projects Pre Filing (MMcf/d) March 2009 Alaska Gas Pipeline (Denali) (4,000) Apex Expansion (Kern River) (266) Loop Expansion (Questar Overthrust) (800) Yuma Lateral (North Baja) (81) Sunstone Project (Sunstone) (1,200) Sundance (Northwest) (150) Colorado Hub (Northwest) (445) Pathfinder Pipeline (TransCanda) (1,200) Bison Project (Bison) (400) East End Expansion (Ozark) (1,000) Fayetteville Express (Fayetteville) (2,000) 13.74 BCF/D Total 2,890 Miles Mobil Bay Lat (Florida Gas) Pascagoula Expansion (343) (Transco & Florida Gas) (810) Source: FERC
Major Pipeline Projects On The Horizon (MMcf/d) March 2009 Alaska (4,500) Paso Norte Pipeline Project (380) Greasewood Lateral (Northwest) (200) Eastern & Western Flow Path (Questar) (2,000) White River Lateral (Questar) (810) Grassland Expansion (Williston Basin) (40) Blue Bridge (Williams) (500) Raton Expansion (CIG) (130) Bronco Pipeline (Spectra) (1,000) Kern River (500) WIC (255) Western Energy (1,000) 38.69 BCF/D Total 4,320 Miles Source: FERC Panhandle Eastern (750) Kinder Morgan (360) Kinder Morgan (170) Northern Natural (82) Spectra (400) Hub III (Dominion) (570) Bakken Pipeline (WIC) (100) Williston Basin (20) Vector (120) REX East Exp. (1,000) ANR (1,000) Trunkline (650) Southern Star (65) Seminole (80) Northeast Expansion (NFG) (500) MetroExpress (Iroquois) (300) Northeast Express (Rockies) (1,500) New Penn (Nisource) (500) Appalachia to Northeast (Spectra) (300) Liberty Natural (2,400) Dominion Keystone (Dominion) (1,000) Rockies Connector (Williams) (688) East-West Connector (NFG) (750) A/G Line Expansion (Natural)(139) Enogex Pipeline (Southern Star) (100) Gulfstream (750) Greenway Expansion (East Tennessee) (450) Centerville Expansion (Columbia Gulf) (235) Discovery Pipeline (Williams) (150) Midcontinent Express (300) Worsham-Steed (Falcon Gas) (150) Gulf South (500) Gulf Coast Connector (NGS) (2,000) 800 Line Expansion (Tennessee) (400) Henry Hub Expansion (Trunkline) (600) Haynesville (ANR) (1,800) Houston Market (KM Interstate) (400) Highland Trails (Southern Star)(1,000) ETX Exp (TETCO) (600) Henry Hub (Columbia Gulf) (200) Eagle Hub Project (Lehman) (2,000) Shenzi Lateral (Enbridge) (100) Mobil Bay South II (Transco)(550) Destin Pipeline (380) Tiger Pipeline (Energy Transfer) (1,250)
Business Environment Very successfully situated industry Most successful infrastructure Safest transportation mode Even with all that sun shining, issues to consider: Project Issues Construction Issues Regulatory Issues Public Issues
Project Issues More miles; larger diameter; multiple projects; People shortages; Pipe storage areas; contactor yards; outsourcing (engineering, ROW acquisition, etc); 80% SMYS projects: special permits; extra work; higher yield pipe; Increasing costs (materials & labor)=overruns, time delays.
Construction Issues Competition; Costs, schedules, permitting; Workforce experience, training; Automatic welding new procedures, new specs;
Regulatory Issues 80% projects requirements; Pre Filing / Scheduling / Regulatory Coordination & Consistency; Increased inspection PHMSA, FERC COE, FWS, FS, > consistency
Public Issues Communication the internet; Pre Filing; Multiple projects increased Complaints/ interaction/ involvement with Congress; Why here = Why now = Why at all?
Why We re Here INGAA Foundation long term commitment to review prior year of construction and share lessons learned. Our primary mission is to learn from each other. Identify issues and ways that we can improve our work before and when we get on the ROW. Review last year's session, touching upon the issues and what the outcomes were.
Questions Discussion