Association of Energy Engineers January 9, 2013 Michael Dirrane Director, Northeast Marketing
Spectra Energy U.S. Transmission Map Miles of Pipe 13,297 Number of Compressor Stations 129 Total Horsepower 2,147,488
Algonquin Pipeline Critical Fuel Delivery System for ISO New England Power Plants Algonquin Has Greatest Share of ISO New England Generation (Over 40% of Gas Fired Generation) Texas Eastern Algonquin Maritimes & NE Millennium Iroquois Tennessee Gas Pipeline MARCELLUS SHALE NEW YORK 10 5 16 13 15 18 6 8 9 1 2 7 19 11 21 BOSTON 4 20 17 14 3 12 Power Plants currently served by AGT # Plant Name (MW) ~ MDth/d Natural Gas Only 1 ANP Bellingham 523 105 2 Bellingham 337 67 3 Dartmouth Power 68 14 4 Dighton Power 177 35 5 Kleen Energy 620 124 6 Lake Road 564 113 7 Manchester Street 510 102 8 Milford Power 171 34 9 Ocean State Power 635 127 10 Genconn Power 197 39 11 Fore River 837 167 12 Tiverton 279 56 13 Wallingford Energy 241 48 Total Natural Gas Only: 5,157 1,031 Natural Gas / Oil Cogeneration 14 Brayton Point 446 89 15 CMEEC - Pierce Power 96 19 16 Lake Road 281 56 17 Middletown 365 73 18 Mirant Canal 561 112 19 Montville 82 16 20 Potter Street (BELD I) 92 18 21 TMLP 110 22 22 Watson Generating (BELD II) 115 23 Total Cogeneration: 2,148 430 Total Gas Only & Cogeneration: 7,305 1,461
Algonquin Gas Transmission Monthly Deliveries 45,000 Mdth 40,000 35,000 30,000 25,000 20,000 49.9% 9.7% 42% of Total 50.2% 2.4% 46% of Total 57.4% 18.5% 53% of Total 54.9% 11.4% 53% of Total 15,000 10,000 5,000 0 May Jun Jul Aug Prev 5yr Avg Pwr 2011 Pwr 2012 Pwr Prev 5yr Avg Non Pwr 2011 Non Pwr 2012 Non Pwr
Algonquin Gas Transmission Power Plant Monthly Deliveries 25,000 20,000 18.8% 15.2% 15,000 13.9% 44.1% 41.7% Mdth 10,000 65.4% 40.6% 48.4% 5,000 0 May Jun Jul Aug Prev 5yr Avg 2011 2012
Growing Power Generation Demand Algonquin Gas Transmission - Winter 2011/12 700,000 600,000 500,000 400,000 W11_12 Dth 300,000 W10_11 W09_10 W08_09 W07_08 200,000 100,000 0 1 11 21 31 41 51 61 71 81 91 Days
Growing Power Generation Demand Algonquin Gas Transmission Summer 2012 900,000 800,000 700,000 600,000 Dth 500,000 400,000 2012 2011 2010 2009 300,000 200,000 100,000 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91
West to East Utilization - Cromwell Station 1,100,000 1,000,000 900,000 800,000 Daily Quantity (Dth) 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 8/17/2011 8/31/2011 9/14/2011 9/28/2011 10/12/2011 10/26/2011 11/9/2011 11/23/2011 12/7/2011 12/21/2011 1/4/2012 1/18/2012 2/1/2012 2/15/2012 2/29/2012 3/14/2012 3/28/2012 4/11/2012 4/25/2012 5/9/2012 5/23/2012 6/6/2012 6/20/2012 7/4/2012 7/18/2012 8/1/2012 8/15/2012 Capacity Physical Flow
AGT Power Plant Demand vs Weather for Winter 11/12 700,000 600,000 500,000 400,000 Dth 300,000 200,000 100,000 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 EHDD 0910 Winter 1011 Winter 1112 Winter Curve Fit (0910 Winter) Curve Fit (1011 Winter) Curve Fit (1112 Winter)
Spectra Energy U.S. Pipelines Daily Average Power Gen Load Aug - July 4,000,000 3,500,000 3,000,000 ETN 2,500,000 SESH Dth 2,000,000 MNE 1,500,000 AGT 1,000,000 500,000 0 C0708 C0809 C0910 C1011 C1112 TE Gulfstream
Algonquin Gas Transmission Supply Diversity (MDth/d) Operator Aug 09 - July 10 Aug 10 - July 11 Aug 11 - July 12 Texas Eastern 427 525 346 Tennessee- Mahwah 55 137 237 Transco 59 45 59 Columbia Hanover 122 106 96 Millennium 124 224 389 West End Supply 787 1037 1127 Maritimes 73 105 62 Everett 107 101 50 Northeast Gateway 52 0 0 Tennessee- Mendon 49 68 81 East End Supply 281 274 193
Days with Zero Interruptible Capacity Available on Algonquin 350 300 292 250 Number of Days 200 150 100 89 50 0 19 August 2009 - July 2010 August 2010 - July 2011 August 2011- July 2012
Capital Projects In-Service Year Number of Projects Project Capital Cost ($MM) 2007 13 $650 2008 19 1,800 2009 10 650 2010 5 900 2011 6 450 2012 3 550 Total 2007-2012 56 $5,000 Expected 2013-2016 various ~4,000 Total 2007-2016 ~$9,000
Texas Eastern Appalachian Shale Supply Interconnect Program 58 Requests In-Service & Under Agreement (requested tap & posted M&R capacity) Current Appalachian Shale Supply 12.9 Bcf/d 1.5 Bcf/d 31 In-Service (posted M&R capacity) 5.9 Bcf/d 27 In Progress & Under Agreement (Scheduled 2013 In-Service) 7.0 Bcf/d Texas Eastern Appalachian Shale Supply Growth 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000-01/01/10 04/01/10 07/01/10 10/01/10 01/01/11 04/01/11 07/01/11 10/01/11 01/01/12 04/01/12 07/01/12 10/01/12 December 5, 2012
New Infrastructure in Response to Increase in Northeast Shale Supplies Connecting Marcellus & Utica Supplies to Our Diverse Markets Union Gas NEXT TORONTO AIM NEW YORK BOSTON Texas Eastern Appalachia to Market TEAM 2014 Providing producers access to diverse Texas Eastern markets Ohio Pipeline Energy Network OPEN (2014) Connecting Utica production to diverse Texas Eastern markets OPEN TEAM 2014 PHILADELPHIA Northern Expansion Transmission NEXT (2016/2017) Providing Appalachian producers access to Eastern Canada LDC & power markets $2 $4B in expansion opportunities in 2014-2017 Algonquin Incremental Market AIM (2015) New England market pull combined with Northeast PA supply push Renaissance ATLANTA Renaissance Gas Transmission Renaissance (2015) Appalachian supply to Northern Georgia & Atlanta markets
Algonquin Incremental Market Expansion (AIM) MARCELLUS BOSTON UTICA NEW YORK PHILADELPHIA Regional Supply AIM Expansion Purpose: Provides growing New England demand with access to abundant regional natural gas supplies Project Scope: 450 MMcf/d mainline expansion from Ramapo to the head of the G-system Open Season from September 20, 2012 to November 2, 2012 In-Service: 2H16
New Jersey New York Expansion Project Project Details: Extends Texas Eastern reach farther into New Jersey and into New York City for the first time 800 MMcf/d expansion connecting Northeastern PA Marcellus supplies with a new delivery point in Manhattan CapEx: $1.2 B Milestones Achieved: Filed FERC application Dec 2010 FEIS Issued March 2012 FERC Certificate May 2012 Next Steps: Construction began July 2012 In-Service: 2H13 Facilities: 15.9 miles of new 30 pipe from Staten Island to Manhattan, NY Replacement of approximately 5 miles of pipe with 42 pipe on Texas Eastern 3 compressor station reversals on Algonquin and Texas Eastern Meter and regulator upgrades
New Jersey/New York Project Hudson River HDD Pullback November 30, 2012 Set-up of pipe pullback strings in 18th St.
New Jersey/New York Project Hudson River HDD Pullback November 30, 2012 Set-up of sidebooms on 18th St. to move pipe
New Jersey/New York Project Hudson River HDD Pullback November 30, 2012 Setting up of barges with cranes
New Jersey/New York Project Hudson River HDD Pullback December 1, 2012 Pipe being pulled across the Hudson River Walkway
New Jersey/New York Project Hudson River HDD Pullback December 1, 2012 Pipe across the Hudson River to the entry point
New Jersey/New York Project Hudson River HDD Pullback December 1, 2012 Pipe being pulled to the entry point
New Jersey/New York Project Hudson River HDD Pullback December 1, 2012 Pipe entering casing on the platform
New Jersey/New York Project Hudson River HDD Pullback December 2, 2012 Tie-in weld between pullback strings
New Jersey/New York Project Hudson River HDD Pullback December 2, 2012 Pullback underway
New Jersey/New York Project Hudson River HDD Pullback December 2, 2012 Pullback in progress
New Jersey/New York Project Hudson River HDD Pullback December 3, 2012 Pullhead reaches Manhattan
New Jersey/New York Project Hudson River HDD Pullback December 3, 2012 Completed pullback in Manhattan
Texas Eastern Appalachian Market TEAM 2012 Facilities: 17.9 miles of 36 pipeline loop 26,000 horsepower addition Purpose: Provide customers with access to Marcellus production TEAM 2012 Scope: 200 MMcf/d expansion from Southwest, PA Customers: Range Resources 150 MMcf/d (16 years) Chesapeake Utilities 50 MMcf/d (15 years) In-service: 2H 2012
Texas Eastern Appalachian Market TEAM 2014 Project Details: Diverse firm path options from SW PA and WV Marcellus to Texas Eastern M3 and Henry Hub area 600 MDth/d 2H 2014 In-service Milestones Achieved: Executed PA s with Chevron and EQT for 300/d each FERC Pre-Filing July 2012 TEAM 2014 Next Steps: File FERC Certificate Application (Feb 2013) Receive FERC Certificate (Dec 2013)
Texas Eastern Transmission, L.P. Philadelphia Lateral Expansion Purpose: Provides project shippers with additional capacity on the Philadelphia Lateral Project Scope: 27 MMcf/d expansion of the Philadelphia Lateral CapEx: ~$15 MM Customers: Grays Ferry Cogeneration (15 years) Paulsboro Refinery (15 years) Project Status: Under Construction In-service 2H12 Facilities: 0.4 miles take up 16 and re-lay 30
Ohio Pipeline Energy Network OPEN Project Project Details: Expansion of Texas Eastern into Ohio Marcellus and Utica Production Receipt and delivery point optionality to access to Texas Eastern s diverse markets in M-2 to Access Area PA Capacity: 700 1,000 MDth/d In Service: 2H 2015 OH Milestones Achieved: Executed PA with AEP s Ohio Power Co. Completed Open Season May 18 Lebanon Uniontown Clarington WV Steckman Ridge Storage Next Steps: Finalize scope and facilities Complete PA s with shippers