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What’s Up With Infrastructure?

What’s Up With Infrastructure?. Interstate Pipeline Regulatory Committee Jeff Wright, Chief Energy Infrastructure Policy Group Office of Energy Projects Federal Energy Regulatory Commission Phoenix, Arizona October 9, 2003. FERC Helping Markets Work. Adequate Infrastructure. Standard

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What’s Up With Infrastructure?

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  1. What’s Up With Infrastructure? Interstate Pipeline Regulatory Committee Jeff Wright, Chief Energy Infrastructure Policy Group Office of Energy Projects Federal Energy Regulatory Commission Phoenix, Arizona October 9, 2003

  2. FERCHelping Markets Work Adequate Infrastructure Standard Market Rules  Competitive Market Market Monitoring & Oversight

  3. FERC/OEP Tools • Create a Forum for Discussion • Outreach Conferences • Advise • Study Existing Facilities • Meet with Stakeholder Groups • Our Process • Act on Certificate Filings

  4. Why An InfrastructureGroup? • The Chairman wanted a group dedicated to infrastructure issues and wanted it located in OEP. • The convergence of gas and electric necessitates examinations of infrastructure dedicated to both as well as hydro, coal and oil issues. • Need to research and present findings, both publicly and in-house.

  5. Mission Statement The Energy Infrastructure Policy Group would apprise the Commission of the status of the national energy infrastructure providing timely and accurate guidance on how national energy infrastructure needs can be met

  6. Objectives The Energy Infrastructure Policy Group would provide infrastructure guidance on measures before the Commission, prepare periodic regional reports on the status of national energy infrastructure, and, upon request, conduct special infrastructure studies.

  7. Organization • EIPG is part of OEP’s front office staff. • Answers directly to the Director and Deputy Director. • Operates collegially. • Group leader serves as focal point for assignments

  8. Staff • Five multidisciplinary people with strong oral and computer-based presentation skills. • Uses Commission-wide resource as required by the task. • Regularly work with representatives of OMTR, OMOI, and OGC.

  9. Specific Duties • Regional Assessments • Regional Infrastructure Conferences • Reports to the Commission • Closed and Open Meetings • Convene Meetings with CRE and NEB • North American Energy Working Group • Other Duties As Assigned….

  10. FERC Infrastructure Conferences • Five Conferences Held • Seattle • New York City • Orlando • Chicago • Denver • Purpose • Bring together experts to discuss infrastructure issues in region

  11. InfrastructureConferences • Discussion Issues Include: – Adequacy of Electric, Gas, Hydro and Other Infrastructure – Essential Energy Infrastructure

  12. TopicsAddressed • Adequacy of Existing Infrastructure • Necessary Additions of Infrastructure • Barriers to Expansion • Environmental and Landowner Concerns

  13. Why Conferences? • To Explore How FERC Can Facilitate • How To Enhance A Comprehensive And Collaborative Approach • Development Of Reliable Energy Infrastructure

  14. Advising on Gas Infrastructure Needs • Analyze What’s There • Supply New Generation & Markets • Security • Siting

  15. Tuscarora (96) Major Pipeline Projects Certificated (MMcf/d)January 2002 to Oct 2003 Georgia Straits (96) Northwest (162) Northwest (224) WBI (80) Iroquois(70) NFS/DTI (150) 1 Northwest (191) ANR (220) 2 3 TETCO(223) 4 CIG (282,92) TETCO(250) 1. Algonquin (285) 2. Islander East (285) 3. Iroquois (85) 4. Columbia (135,270) Kern River (886) Greenbrier (600) El Paso (140) East Tennessee (510) Kern River (282) North Baja (500) TETCO (197) SCG Pipeline (190) Transco (323) El Paso (320) Southern (330) 7.9 BCF/D Total 2,295 Miles Tennessee (320)

  16. Major Pipeline ProjectsPending (MMcf/d)October 2003 Northwest (113) Maritimes (400) CIG (118) ANR (107) Cove Point (445) Cheyenne Plains (560) Calypso (832) Discovery (150) 3.6 BCF/D Total 526 Miles Ocean Express (842)

  17. Major Pipeline Projectsin Pre-filing (MMcf/d)October 2003 Grasslands Expansion (120) (WBI) Weaver’s Cove Energy LNG (400) Sound Energy Solutions LNG (700) (Mitsubishi) Picacho Pipeline (1,000)* Pacific Texas 1.1 BCF/D Total Pipeline Capacity 1.1 BCF/D Deliverability Capacity 1,120 Miles *Picacho’s pre-filing has been suspended pending submission of required documents

  18. WIC (150,300,470) Samoa Point (Calpine) (1,000) Sun Devil Project(Transwestern) (450) Advantage Southern (KM Interstate) (800) Silver Canyon Project (KM Interstate) (750) San Juan Lateral Exp. (Transwestern) (600) KM West Texas (KM Interstate) (300) Wheatland Expansion (KM Interstate) (80) Western Frontier (So. Star)(540) Kern River Expansion (500) TransColorado (750,125) Desert Crossing (500) Coronado (500) Major Pipeline Projects On The Horizon (MMcf/d)October 2003 Alaska Gas (4,500) Lebanon Lateral (ANR) (250) Bison Pipeline (Northern Border) (325) Cheyenne Plains (170) Trailblazer (100) Enbridge (1,000) Blue Atlantic (El Paso) (1,000) Freedom Trail (Tennessee) (150) Northwinds Pipeline (NFG) (570) Transco (250) Alabama-Georgia (Duke) (240) Seafarer Pipeline (El Paso) (700) Gulf Pines (Gulf South) (1,000) 16.9 BCF/D Total 6,306 Miles

  19. Storage Projects(Capacity in Bcf)October 2003 Wyckoff (6.0) Stagecoach (13.6) Bluewater (27.0) Seneca (0.8) KM (6.5) Questar (5.0) Tennessee (5.0) Midwest (4.5) Dominion (5.6) Desert Crossing (10.0) Sabine (40.0) NUI (11.6) Copper Eagle (3.2) Caledonia (10.0) Natural (10.7) Falcon Gas (20.0) EnCana (8.0) SG Resources (6.0) Certificated Since 2001 Egan Hub (13.5) Currently Pending Copiah (3.3) On The Horizon Gulf South (18.5)

  20. FERC Existing Terminals with Expansions A. Everett, MA : 1.035 Bcfd (Tractebel) B. Cove Point, MD : 1.0 Bcfd (Dominion) C. Elba Island, GA : 1.2 Bcfd (El Paso) D. Lake Charles, LA : 1.2 Bcfd (Southern Union) Approved Terminals 1. Hackberry, LA : 1.5 Bcfd, (Sempra Energy) Proposed Terminals – FERC 2. Bahamas : 0.84 Bcfd, (AES Ocean Express) 3. Bahamas : 0.83 Bcfd, (Calypso Tractebel) 4. Freeport, TX : 1.5 Bcfd, (Cheniere / Freeport LNG Dev.) 5. Fall River, MA : 0.4 Bcfd, (Weaver's Cove Energy) 6. Long Beach, CA : 0.7 Bcfd, (Sound Energy Solutions/Mitsubishi) Proposed Terminals – Coast Guard 8. Port Pelican: 1 Bcfd, (Chevron Texaco) 9. Gulf of Mexico: 0.5 Bcfd, (El Paso Global) Planned Terminals 10. Brownsville, TX : n/a, (Cheniere LNG Partners) 11. Corpus Christi, TX : 2.6 Bcfd, (Cheniere LNG Partners) 12. Sabine, LA : 2.6 Bcfd (Cheniere LNG) 13. Humboldt Bay, CA : 0.5 Bcfd, (Calpine) 14. Undecided: 1.0+. Bcfd, (ExxonMobil) 15. Somerset, MA : 0.65 Bcfd (Somerset LNG) 16. Louisiana Offshore : 1.0 Bcfd (McMoRan Exp.) 17. Belmar, NJ Offshore : n/a, n/a (El Paso Global) 18. So. California Offshore : 0.5 Bcfd, (Chevron Texaco) 19. Bahamas : 0.5 Bcfd, (El Paso Sea Fare) 20. Altamira, Tamulipas : 1.12 Bcfd, (Shell) 21. Baja California : 1.3 Bcfd, (Sempra) 22. Baja California : 1.4 Bcfd, (Chevron Texaco) 23. Baja California : 0.85 Bcfd, (Marathon) 24. Baja California : 1.3 Bcfd, (Shell) 25. St. John, NB : 0.75 Bcfd, (Irving Oil & Chevron Canada) 26. California Offshore: 1.5 Bcfd, (BHP Billiton) 27. Point Tupper, NS 0.75 Bcf/d (Access Northeast Energy) 28. Harpswell, ME 0.5 Bcf/d (Fairwinds LNG – CP & TCPL) Existing and Proposed LNG Terminals 27 25 A 15 5 17 B 13 18 6 26 C 21 19 22 D 1 2 3 23 12 4 11 24 16 8 9 10 20 October 2003 Office of Energy Projects 19

  21. Maximum LNGDeliverability Growth (Bcf/d)

  22. What Have WeBeen Doing Lately? A quick look at Western US Gas Infrastructure

  23. The West is dependent on production from gas originating mainly in the Rockies, Southwest and Canada. Western Gas Facts - 2001 Source: EIA’s Natural Gas Annual 2001 and US Crude Oil, Natural Gas, and Natural Gas Liquid Reserves 2001 Annual Report 22 Office of Energy Projects

  24. Over the past 10 years, the electric generation has been the fastest growing sector in the West and is now the largest gas consuming sector. Source: EIA’s Natural Gas Annual 2001 with supporting data, and EIA’s Historical Consumption by State 23 Office of Energy Projects

  25. Planned gas-fired electric plants in the west for the period 2003-2005 will be located along the major interstate natural gas pipelines, and along the intrastate natural gas pipelines in California. Source: RDI’s Powermap and NewGen (May 2003 data) 24 Office of Energy Projects

  26. Major Western Interstate Gas Pipelines Colorado Interstate Gas Co. El Paso Natural Gas Co. Kern River Gas Transmission Mojave Pipeline Co. Northern Border Pipeline Co. Northwest Pipeline Corp. Paiute Pipeline Co. PG&E Gas Transmission, Northwest Questar Gas Co. Southern Star Central Gas Southern Trails Pipeline Trailblazer Pipeline Co. TransColorado Gas Transmission Transwestern Pipeline Co. Tuscarora Gas Transmission Williston Basin Interstate Wyoming Interstate Co., Ltd. The West is dependent on pipeline capacity originating in Canada and the Southwest. As the Rocky Mountain basins develop, increased pipeline capacity will be required to transport this gas towards markets in the West and Midwest. 3.8 Bcf/d 0.4 Bcf/d 1.8 Bcf/d 1.1 Bcf/d 1.8 Bcf/d 0.5 Bcf/d 0.2 Bcf/d Source: RDI’s Powermap and EEA’s April 2002 data base (Average Pipeline Capacity for 2002) 25 Office of Energy Projects

  27. Big Horn Basin Powder River Basin Wind River Basin Overthrust Belt MT WY Green River Basin Denver Basin UT CO 26% Of Total US Gas Reserves Are Located in the Rocky Mountain Region. Rocky Mountains Total Resources 209 Tcf Conventional 29 Tcf Non-Conventional 180 Tcf (Coal Bed Methane 45 Tcf) Wyoming Southwestern Wyoming & Powder River Basin 101 Tcf Powder River Basin – Coal Bed Methane 14.3 Tcf Sources: Wyoming Energy Commission’s Website; Mr. Chris Schenk of USGS; USGS’ Assessment of Oil and Gas Resources in Priority Basins in the US; and Power Map

  28. Proved Gas Reserves • Wyoming and Colorado comprised 10% and 7%, respectively, of EIA’s estimated total proved US gas reserves of 183.5 Tcf as of 12/31/01. • Wyoming had the largest increase in proved reserves, by state or federal region, from 2000 to 2001 at 2.2 Tcf. (Total US reserves increased by 6 Tcf.)

  29. Rocky Mountain Pipelines Eleven interstate pipelines are located within the four states that encompass the Rocky Mountain region. These 11 pipelines have total average pipeline capacity of 5,204 MMcf/d coming out of the Rockies as of May 2003. Source: RDI Power Map and Capacity Volumes from Energy and Environmental Analysis Inc’s (EEA) April 2002 Base Case.

  30. FERC Interstate Pipeline Capacity Out of Wyoming 0.2 Bcf Note: Williams Gas Pipelines Central Inc. is now Southern Star Central Gas Pipeline. Opal Hub 2.2 Bcf Cheyenne Hub 3.1 Bcf Source: RDI PowerMap and various flow diagrams on file at the FERC. 29

  31. Productive Capacity vs.Pipeline Capacity • EIA shows that the Rockies could produce up to 6 Bcf per day through 2003. • Wyoming Energy Commission shows that the Rockies could produce up to almost 8.0 Bcf per day by 2005 and 11.0 Bcf per day by 2010. • Both of these totals are greater than the current pipeline capacity of the region.

  32. Contact JEFF WRIGHT jeff.wright@ferc.gov 202-502-8617

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