Algonquin Gas Transmission Pre-Winter Operations Discussion

Transcription

1 AGT PRE-WINTER OPERATIONS MEETING OCTOBER 22, 2013 Algonquin Gas Transmission Pre-Winter Operations Discussion October 22, 2013

2 Agenda Welcome & Opening Comments Operational Update Northeast Projects Update Richard Kruse Mark MacPherson Greg Crisp Open Discussion AGT Pre-Winter Operations Meeting 2

3 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. AGT Pre-Winter Operations Meeting 3

4 AGT PRE-WINTER OPERATIONS MEETING OCTOBER 22, 2013 Operational Update Mark MacPherson General Manager, Capacity Management

5 Algonquin Gas Transmission Receipt Points AGT Pre-Winter Operations Meeting 5

6 Algonquin Gas Transmission, LLC Posted Capacities Location: New England Capacity: 2.2 MMdth/d Length: 1,127 miles Compressor Stations: 7 Horsepower: 195,810 Operator: Spectra Energy Transmission (SET) Ownership Interest: 100% SET Major Markets: Boston, Providence, Hartford, Cape Cod AGT Pre-Winter Operations Meeting 6

7 Mdth Algonquin Gas Transmission Monthly Deliveries 45,000 40, % -9.7% 4.1% 35,000 30,000 25, % 41% of Total 28.6% -2.7% 37% of Total 39.0% 48% of Total 24.1% 45% of Total 20,000 15,000 10,000 5,000 0 May Jun Jul Aug Prev 5yr Avg Pwr 2012 Pwr 2013 Pwr Prev 5yr Avg Non Pwr 2012 Non Pwr 2013 Non Pwr AGT Pre-Winter Operations Meeting 7

8 Mdth Algonquin Gas Transmission Power Plant Monthly Deliveries 25,000 20, % -20.6% 15, % -19.0% 27.3% 5.0% 10, % 10.2% 5,000 0 May Jun Jul Aug Prev 5yr Avg AGT Pre-Winter Operations Meeting 8

9 MDth/d Algonquin Gas Transmission Top 25 Summer Days /18 7/19 7/15 7/17 6/24 7/5 7/16 5/ AGT Pre-Winter Operations Meeting 9

10 MDth/d Algonquin Gas Transmission Power Plant Top 25 Summer Days /18 7/19 7/5 7/17 6/ AGT Pre-Winter Operations Meeting 10

11 Algonquin Gas Transmission Supply Diversity (MDth/d) Operator Sep 10 - Aug 11 Sep 11 - Aug 12 Sep 12 - Aug 13 Texas Eastern Tennessee- Mahwah Transco Columbia Hanover Millennium West End Supply Maritimes Everett Northeast Gateway Tennessee- Mendon East End Supply AGT Pre-Winter Operations Meeting 11

12 Daily Quantity (Dth) Algonquin Gas Transmission West to East Utilization - Cromwell Station 1,100,000 1,000, , , , , , , , , , /1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 Posted Capacity Flow AGT Pre-Winter Operations Meeting 12

13 8/1/2012 8/15/2012 8/29/2012 9/12/2012 9/26/ /10/ /24/ /7/ /21/ /5/ /19/2012 1/2/2013 1/16/2013 1/30/2013 2/13/2013 2/27/2013 3/13/2013 3/27/2013 4/10/2013 4/24/2013 5/8/2013 5/22/2013 6/5/2013 6/19/2013 7/3/2013 7/17/2013 7/31/2013 Daily Quantity (Dth) Algonquin Gas Transmission - I System East to West Utilization (East End Receipts) 500, , , , , , ,000 Posted Capacity Flow AGT Pre-Winter Operations Meeting 13

14 Maritimes & Northeast Pipeline Winter Season Supply Diversity (MMDth) Operator W 10/11 W11/12 W12/13 Canaport Corridor Goldboro PNGTS Encana TOTAL AGT Pre-Winter Operations Meeting 14

15 Maritimes & Northeast Pipeline Supply Diversity (MDth/d) Operator Sep 10 - Aug 11 Sep 11 - Aug 12 Sep 12 - Aug 13 Canaport Corridor Encana Goldboro PNGTS M&N Total AGT Pre-Winter Operations Meeting 15

16 Number of Days Days with Zero Interruptible Capacity Available on Algonquin August July 2011 August July 2012 August July 2013 AGT Pre-Winter Operations Meeting 16

17 Algonquin Gas Transmission Number of Days Restricted Location W12-13 W11-12 W10-11 Seal Only Restrictions Seal Only Restrictions Seal Only Restrictions Mahwah Mainline Stony Point Southeast Cromwell Burrillville Hubline East to West Definitions: Seal Only: Restrictions: AGT did not reduce scheduled quantities at the close of the Timely Cycle. Due to a capacity constraint, however, AGT did not accept nominations in excess of available posted capacity. AGT reduced scheduled quantities to posted pipeline capacity at the close of the Timely Cycle in accordance with GT&C Section 24 of the AGT Tariff. AGT Pre-Winter Operations Meeting 17

18 Algonquin Gas Transmission Directly Connected Power Generators AGT Pre-Winter Operations Meeting 18

19 Dth Algonquin Gas Transmission Power Plant Demand vs EHDD Nov - Feb 700, , , , , , , EHDD 1011 Winter 1112 Winter 1213 Winter Curve Fit (1011 Winter) Curve Fit (1112 Winter) Curve Fit (1213 Winter) AGT Pre-Winter Operations Meeting 19

20 Texas Eastern Transmission, L.P. Supply Diversity (MDth/d) Operator Sep 10 - Aug 11 Sep 11 - Aug 12 Sep 12 Aug 13 TE Marcellus Production ,747 REX - Clarington Lebanon Area (ANR, PEPL, REX, TX Gas) TETLP Mainline (traditional) , TETLP Market Zones Supply 3,516 3,164 3,256 AGT Pre-Winter Operations Meeting 20

21 Mdth Texas Eastern Transmission, L.P. Zones M2/M3 Monthly Deliveries 120, ,000 80, % 13.2% 26% of Total 0.3% 5.4% 28% of Total 11.2% 13.4% 29% of Total 15.3% 24.2% 29% of Total 60,000 40,000 20,000 0 May Jun Jul Aug Prev 5yr Avg Pwr 2012 Pwr 2013 Pwr Prev 5yr Avg Non Pwr 2012 Non Pwr 2013 Non Pwr AGT Pre-Winter Operations Meeting 21

22 Mdth Texas Eastern Transmission, L.P. Zones M2/M3 Power Plant Monthly Deliveries 40,000 35, % 30, % 9.2% 25, % 33.8% 40.2% 20, % 15, % 10,000 5,000 0 May Jun Jul Aug Prev 5yr Avg AGT Pre-Winter Operations Meeting 22

23 MDth/d Texas Eastern Transmission, L.P. M2/M3 Power Plant Top 25 Summer Season AGT Pre-Winter Operations Meeting 23

24 Spectra Energy Informational Postings Spectra Energy Transmission provides an easily accessible website that has a variety of postings that are available to the general public Some of the information available on the LINK Infopost site isw: Critical notices Non-critical notices that relate to pipeline operations, computer system information, news, and other information Planned service outages and maintenance Operational Available Capacity (including historical data) Gas quality on all pipelines Pipeline tariffs and regulatory filings Posting Information is available at the following URL: AGT Pre-Winter Operations Meeting 24

25 Spectra Energy Postings Critical Notices Spectra Energy posts on its Electronic Bulletin Board (EBB), within the Critical Notices section, system condition updates such as: Daily scheduling restriction locations Imbalance warnings and updates Operational Flow Orders (OFOs) Unplanned outages or abnormal pipeline conditions impacting pipeline operations Customer Service Communication Quality of service is an overarching framework Cannot discuss non-posted information that could provide a market advantage with any party AGT Pre-Winter Operations Meeting 25

26 Operational Available Capacity Information Operational Available Capacity (OAC) information is available for each Spectra Energy Transmission s pipeline system for: Each meter station Each compressor station and capacity restriction location Information is published after each scheduling cycle and available to all parties Information is published at the TIMELY cycle and each hour after the TIMELY cycle on Maritimes & Northeast Pipeline, Algonquin Gas Transmission and Texas Eastern AGT Pre-Winter Operations Meeting 26

27 Operational Available Capacity Meter Capacity AGT Pre-Winter Operations Meeting 27

28 FERC Order No. 698 Communication Requirements The hourly consumption information can be submitted in one of two manners: Option 1: Uploading the standardized Spectra Energy Order 698 Spreadsheet into the user interface in LINK Option 2: Manually enter data directly into the user interface in LINK For both options, the individual uploading or entering the hourly consumption profile must have a LINK System log-on and password In addition, they must have adequate LINK privileges to View Measurement for the specified meter Contact your Capacity Service Account Representative or the LINK group at: if you have any questions AGT Pre-Winter Operations Meeting 28

29 AGT PRE-WINTER OPERATIONS MEETING OCTOBER 22, 2013 Business Development Update Greg Crisp Director, Business Development

30 U.S. Transmission & Storage Projects in Execution UTICA OPEN MARCELLUS AIM TEAM 2014 NJ-NY Expansion Thru 2017 ~$6 B in expansion projects ~3 Bcf/d in new pipeline capacity Bobcat Storage Kingsport Sabal Trail Expansion Project New Jersey - New York Expansion TEAM 2014 In-Service 4Q13 2H14 Kingsport OPEN AIM Sabal Trail 2H15 2H16 1H17 AGT Pre-Winter Operations Meeting 30

31 Algonquin Incremental Market AIM Expansion Purpose: Provide growing New England demand with access to abundant regional natural gas supplies Project Scope: Providing more than 300 MMcf/d of additional capacity to move Marcellus production to Algonquin City Gates CapEx: ~$850MM Customers: UIL Holdings Northeast Utilities National Grid NiSource Project Status: FERC pre-filing commenced June 2013 File FERC application 1Q14 Receive FERC certificate 1Q15 Commence construction 2Q15 In-service 2H16 Regional Supply Facilities: Take up and relay portions of existing 26 with 42 Additional horsepower at almost every compressor station Expansion of constrained parts of the pipeline system Upgrades of meter stations to accommodate incremental flow AGT Pre-Winter Operations Meeting 31

32 Algonquin Pipeline Critical Fuel Delivery System for ISO New England Power Plants Algonquin Serves over 40% of ISO New England s Gas Generation Fleet Texas Eastern Algonquin Maritimes & NE Millennium Iroquois Tennessee Gas Pipeline MARCELLUS SHALE NEW YORK BOSTON Power Plants currently served by AGT # Plant Name (MW) ~ MDth/d Natural Gas Only 1 ANP Bellingham Bellingham Dartmouth Power Dighton Power Kleen Energy Lake Road Manchester Street Milford Power Ocean State Power Genconn Power Fore River Tiverton Wallingford Energy Total Natural Gas Only: 5,157 1,031 Natural Gas / Oil Cogeneration 14 Brayton Point CMEEC - Pierce Power Lake Road Middletown Mirant Canal Montville Potter Street (BELD I) TMLP Watson Generating (BELD II) Total Cogeneration: 2, Total Gas Only & Cogeneration: 7,305 1,461 AGT Pre-Winter Operations Meeting

33 Maritimes and Northeast Pipeline Current On-System Power Plants Power Plants currently served by Maritimes # Plant Name (MW) ~ MDth/d Nova Scotia Power Bayside Power Casco Bay Energy Bucksport Energy Westbrook Energy Center Newington Energy Public Service of New Hampshire Total 2, AGT Pre-Winter Operations Meeting

34 Current New England Supply Dynamics Maritimes & Northeast Texas Eastern Algonquin Maritimes & NE Millennium Iroquois Tennessee Gas BOSTON ALGONQUIN Texas Eastern NEW YORK Algonquin Provides Abundant Liquidity for Future Expansions AGT Pre-Winter Operations Meeting 34

35 Price A Function of Supply and Demand Waddington 1 $0.67 Maritimes & Northeast Texas Eastern Algonquin Maritimes & NE Millennium Iroquois Tennessee Gas BOSTON AGT CG 1 $2.11 ALGONQUIN Texas Eastern NEW YORK M3 1 ($0.19) 1. Weighted Average Winter/Summer Forward Basis Comparison with Henry Hub as of October 2, Henry Hub Weighted Average Price = $3.83 AGT Pre-Winter Operations Meeting 35

36 What s Next? Currently Developing Additional Incremental Expansion of AGT Target In Service 2017 Target markets AGT City Gates Northern New England Atlantic Canada MDth/d but scalable Incremental Project Benefits Direct access to liquid supply points AGT city gate access Scalable to the market need Lower environmental impact AGT Pre-Winter Operations Meeting 36

37 Open Discussion AGT Pre-Winter Operations Meeting 37

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