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Is Natural Gas Ready to Be the Fuel of the Future? The Interstate Natural Gas Pipeline Industry Response. APPA CEO Roundtable Phoenix, AZ March 15, 2011. Interstate Natural Gas Pipelines: A Robust Energy Highway. A Highly Integrated Natural Gas Transmission Network.
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Is Natural Gas Ready to Be the Fuel of the Future?The Interstate Natural Gas Pipeline Industry Response APPA CEO Roundtable Phoenix, AZ March 15, 2011
A Highly Integrated Natural Gas Transmission Network • 305,000 miles of natural gas transmission pipelines in U.S. • 217,000 miles of interstate pipeline • 88,000 miles of intrastate pipeline • 1,400 compressor stations • 11,000 delivery points, 5,000 receipt points, 1,400 interconnection points • 24 market hubs • 400 underground storage locations • 49 pipeline export/import connections • 8 LNG import terminals • Between 1997 and 2007, 53 pipeline companies reported that they spent $30.8 billion for interstate pipeline infrastructure. (2007 CWIP was $5.2 billion.) Source: U.S. Department of Energy, Energy Information Administration
Market Responsive Infrastructure Additions Major Pipeline Projects Certificated (MMcf/d)January 2000 to February 2011 Colorado Corridor 23 Projects 29 Certificates 12,930 MMcf/d New England Corridor 22 Projects 31 Certificates 9,773 MMcf/d 10 20 17 13 14 1 22 16 11 5 8 34 Ruby Pipeline (1,456) 18 7 35 28 26 2 29 21 3 12 6 15 31 19 9 32 33 4 36 8 6 23 25 Rockies Express East (1,800) 24 30 27 60 59 Fayetteville Corridor 12 Projects 23 Certificates 20,240 MMcf/d 61 58 63 62 64 57 65 66 67 56 51 52 53 115.00 BCF/D Total 16,178 Miles 152 projects 212 certificates 50 54 55 49 39 47 40 46 48 38 37 45 41 42 East Texas Corridor 18 Projects 22 Certificates 22,125 MMcf/d 44 43
Contrast with Electricity Transmission Transmission Projects 765kV 345 kV DC Since 2000, 9 High Voltage (≥345kV)Interstate Transmission Lines have been built totaling 682 miles. Source: FERC
Natural Gas Storage Source: Energy Information Administration, Office of Oil & Gas, Natural Gas Division Gas, Gas Transportation Information System, December 2008.
Natural Gas Storage:New and Expanded Capacity 93 Certificated Storage Projects Since 2000 for Expansion of or New Capacity 933.175 Bcf working gas capacity Source: FERC, Office of Energy Projects Certificated capacity may not yet be fully operational
Interstate Pipelines Are Key To Creating A Reliable Natural Gas Market The United States is closer than ever before to being a single natural gas market with congestion limited to a few markets for a few periods during the year. The reason? In addition to significant new recoverable reserves, important expansions and extensions of gas transmission capacity have reduced the volatility of the price of gas delivered to the market. Source: 2009 FERC State of the Market Report (released April 2010), page 14
Sustainable Operations and Safety Improvements - 100 90 Long - term trend (average 80 10% decline every 3 years) 70 60 50 40 30 20 10 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Calendar Year Data: DOT/PHMSA Pipeline Incident Data (as of Jan. 19, 2011) Pipeline Incidents with Death or Major Injury (1986-2010)
Transporting Natural Gas is Our Business. Safety is Our Commitment INGAA Pipeline Safety Task Force Guiding Principles • Our goal is zero incidents – a perfect record of safety and reliability for the national pipeline system. We will work every day toward this goal. • We are committed to safety culture as a critical dimension to continuously improve our industry’s performance. • We will be relentless in our pursuit of improving by learning from the past and anticipating the future. • We are committed to applying integrity management principles on a system-wide basis. • We will engage our stakeholders – from the local community to the national level – so they understand and can participate in reducing risk.
Contact Information R. Allan Bradley President & CEO Questar Pipeline Company allan.bradley@questar.com Greg Harper Senior Vice President & Group President, Pipelines and Field Services CenterPoint Energy cg.harper@centerpointenergy.com Donald Santa President and CEO Interstate Natural Gas Association of America dsanta@ingaa.org