Interstate Marketing - Northeast Gas Association

NGA 2014 Regional Market Trends Forum
May 2014 NGA Regional Market Trends Forum
National Fuel Gas Supply Corporation
Empire Pipeline, Inc.
Jeffrey Schauger
General Manager
Interstate Marketing
1
NFG PL&S/Midstream Focus
Niagara
Chippawa
Hopewell
May 2014 NGA Regional Market Trends Forum
Corning
Ellisburg
WDA GAS
Leidy
Jackson
DRY GAS
WET GAS
Holbrook
2
Recent Extreme Winter Conditions Send Throughput Soaring
Winter Throughput on NFGSC
90,000
80,000
Monthly Throughput (MDth)
May 2014 NGA Regional Market Trends Forum
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Nov
Dec
Jan
Feb
Mar
Winter 2011-2012
Nov
Dec
Jan
Feb
Mar
Winter 2012-2013
Nov
Dec
Jan
Feb
Mar
Winter 2013-2014
3
Winter 13-14: Top Gas Inventory Ends at 11.6 Bcf
NFGSC Storage Inventory
80
70
60
35.1 Bcf
March 15, 2012
22.1 Bcf
April 8, 2013
May 2014 NGA Regional Market Trends Forum
Bcf
50
40
Low of 11.6 Bcf on
April 2, 2014
30
20
10
0
Nov-11
Feb-12
Winter
2011-2012
May-12
Aug-12
Nov-12
Feb-13
Winter
2012-2013
May-13
Aug-13
Nov-13
Feb-14
Winter
2013-2014
4
Recent Expansions Have Transformed the System
Project
Tioga County
Extension
May 2014 NGA Regional Market Trends Forum
Northern
Access
Line N Projects
* Capital Cost is for Expansion Only – Excludes Modernization Cost
Northern Access
320,000 Dth/d
Tioga County Extension
350,000 Dth/d
Line N (2011, 2012 & 2013)
353,000 Dth/d
Total New Capacity
1,023,000 Dth/d
Northern Access
$72 million
Tioga County Extension
$58 million
Line N (2011, 2012 & 2013)
$58 million
Total Capital Expenditures *
$188 million
Northern Access
$16.1 million
Tioga County Extension
$29.4 million
Line N (2011, 2012 & 2013)
$17.8 million
Total Annual Revenue
$63.3 million
5
Upper Devonian - NFGSC
Marcellus - NFGSC
Marcellus - NFG Midstream
Marcellus - Empire
Jan-14
Nov-13
Sep-13
23.69 MMDth
(846 MDth/d)
25.00
20.00
600
15.00
500
400
10.00
2.74 MMDth
(88 MDth/d)
0.00
(MDth per Day)
30.00
Jul-13
May-13
Mar-13
Jan-13
Nov-12
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
Jul-11
May-11
Mar-11
Jan-11
Nov-10
Sep-10
Jul-10
May-10
Mar-10
Jan-10
Nov-09
Sep-09
Jul-09
5.00
May-09
Mar-09
Jan-09
(MMDth per Month)
May 2014 NGA Regional Market Trends Forum
Directly Connected Production Continues to Increase
1,000
900
800
700
300
200
100
-
6
NFG Supply Corp is a Major SW PA Transporter
900
800
Daily Throughput (MDth per Day)
May 2014 NGA Regional Market Trends Forum
700
600
500
400
300
200
100
0
2009
2010
TCP
2011
DTI
2012
Equitrans
Source: Production Data – Bentek Northeast Natural Gas Production Monitor (November 2013)
Other
2013
TGP
2014
NFGSC
7
Niagara is Now a Net Export Point to Canada
NFGSC Throughput at Niagara
600
500
400
300
MDth/day
May 2014 NGA Regional Market Trends Forum
200
100
0
(100)
Northern Access project
was placed in-service
November 2012
(200)
(300)
(400)
Nov-05
Nov-06
Nov-07
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
8
Line N Expansion to TGP 219 Pool
Mercer Expansion
 In-Service: November 2014
 System: NFGSC
 Capacity: 105,000 Dth/day
May 2014 NGA Regional Market Trends Forum
 Market: Range Resources
Mercer
Expansion
 Executed PA; 10 Yrs
 Interconnect

Mercer (TGP Station 219)
 Capital Cost: $33.6 Million


Expansion: $29.6 million
System Modernization: $4 million
Mercer
(TGP Station
219)
 Facilities


3,550 HP Compressor
2.08 miles – 24” Replacement Pipeline
9
Continued Expansion to TGP 219 Pool & TETCO M2
Westside Expansion & Modernization
 In-Service: November 2015
 System: NFGSC
 Capacity: 175,000 Dth/day
 Market:
May 2014 NGA Regional Market Trends Forum


Mercer
(TGP Station
219)
Westside
Expansion &
Modernization
 Interconnect


Mercer (TGP Station 219)
Holbrook (TETCO)
 Capital Cost: $76.2 million


Holbrook
(TETCO)
Executed PA with Range Resources;
145,000 Dth per day; 10 Yrs
Executed PA with Seneca Resources;
30,000 Dth per day; 10/15 Yrs
Expansion: $39.6 million
System Modernization: $36.6 million
 Facilities


3,550 HP Compressor
23.3 miles – 24” Replacement Pipeline
10
Deliveries into Eastern Canada
Northern Access 2015
 In-Service: November 2015
 System: NFGSC
May 2014 NGA Regional Market Trends Forum
 Capacity: 140,000 Dth/day
 Market: Executed PA – Lease
arrangement with TGP
Canada &
Eastern U.S.
Niagara (TCPL)
Northern
Access 2015
 Overall Path
 Producing area to Niagara
Clermont
 Capital Cost: $66 million
 Facilities
 15,400 HP Hinsdale CS
 7,700 HP Concord CS
 East Eden M&R Upgrades
Delivery Point
11
Unique Solutions for On-System LDC’s
Tuscarora Lateral
 In-Service: November 2015
 System: NFGSC & Empire
RG&E
May 2014 NGA Regional Market Trends Forum
NFGDC
 New No-Notice Services (FTNN/FSNN)



Market: RG&E, NYSEG
Combination of Contract Renewals and
New Business
Includes 3.3 Bcf of Storage Service
 Interconnect

Tuscarora
Lateral
Tuscarora (NFGSC /Empire)
 Capital Cost:


Empire $34.1 million
Supply $11.1 million
 Facilities


1,500 HP Compressor
17 miles – 12/16” Pipeline
12
Additional Projects into Eastern Canada
Northern Access 2016
 Status: Finalizing Anchor Shipper
Agreements
 Proposed In-Service: Nov 2016
Chippawa
(TCPL)
 System: NFGSC & Empire
TGP 200
Line
Northern
Access 2016
May 2014 NGA Regional Market Trends Forum
 Capacity: ~350,000 Dth/day
 Deliveries to Chippawa, with new
IC at TGP 200 Line
 Proposed Facilities Include:




100+ miles of 24”/30” Pipeline
Empire Compressor Station
Empire Dehydration
M&R Facilities
Delivery Point
13
May 2014 NGA Regional Market Trends Forum
Thank You
14

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