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Enron Transportation Services

Enron Transportation Services. Total Production. 18.4. 15.9. 2.5% Annual Increase. Gulf of Mexico +1.2. 2000. 2005. North America Gas Production Estimated Changes 2000-2005 (Bcf/d). Conclusions To Be Added. Western Canadian Basin +2.4. 2000 9.2 2005 11.6.

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Enron Transportation Services

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  1. Enron Transportation Services

  2. Total Production 18.4 15.9 2.5% Annual Increase Gulf of Mexico +1.2 2000 2005 North America Gas Production Estimated Changes 2000-2005 (Bcf/d) Conclusions To Be Added Western Canadian Basin +2.4 2000 9.2 2005 11.6 Rocky Mountain Basins +1.4 2000 3,8 2005 5.3 San Juan Basin -0.8 Eastern & Other Basins +0.4 2000 3.6 2005 2.8 2000 2.9 2005 3.3 Mid Continent Basins -0.5 2000 7.3 2005 6.8 LNG Imports +1.2 2000 0.4 2005 1.6 Permian Basin +0.0 2000 4.0 2005 4.0 Gulf Coast Onshore +1.9 2000 12.9 2005 14.8 Supply 2000 13.9 2005 15.1

  3. Northwest +xx Midwest East +xx +xx New England California +xx +xx Southeast LNG Imports +1.2 Total Demand Southwest +xx +xx 22.5 17.8 Supply Demand 4.7% Annual Increase Gulf of Mexico +1.2 2000 2005 North America Gas Demand Estimated Changes 2000-2005 (Bcf/d) Conclusions To Be Added Western Canadian Basin +2.4 2000 xxx 2005 xxx 2000 xxx 2005 xxx Rocky Mountain Basins 1.4 San Juan Basin -0.8 Eastern & Other Basins +0.4 2000 xxx 2005 xxx 2000 xxx 2005 xxx 2000 xxx 2005 xxx Mid-Continent Basin -0.5 2000 xxx 2005 xxx Permian Basin +0.0 Gulf Coast Onshore +1.9 2000 xxx 2005 xxx

  4. Northwest +xx Midwest East +xx +xx California +xx Southeast LNG Imports +1.2 Southwest +xx +xx Supply Demand Flow Gulf of Mexico +1.2 North America Gas FlowsEstimated Changes 2000-2005 (Bcf/d) Conclusions To Be Added Western Canadian Basin +2.4 Rocky Mountain Basins 1.4 +x New England +xx San Juan Basin -0.8 Eastern & Other Basins +0.4 +x Mid-Continent Basin -0.5 +x +x Permian Basin +0.0 +x Gulf Coast Onshore +1.9

  5. Northern Border 1,214 Miles 2.4 Bcf/d Peak Capacity $1.5 Billion Rate Base 8% Effectively Owned Transwestern 2,487 Miles 1.6 Bcf/d Peak Capacity $400 Million Rate Base 100% Owned Florida Gas 4,795 Miles 1.5 Bcf/d Peak Capacity $1.3 Billion Rate Base 50% Owned Enron Transportation Services Owns and Operates 25,000 Miles of U.S. Interstate Natural Gas Pipelines Transports 15% of U.S. Natural Gas Demand [Additional Stat] Northern Natural Gas 16,463 Miles 4.3 Bcf/d Peak Capacity $1.1 Billion Rate Base 100% Owned Throughput (BBtu/d) XXXX 9,182 8,817 1998 2000 1999

  6. Financial Highlights Income Before Interest and Taxes (Millions) Cash Flow from Operations* (Millions) $396 $395 $370 $380 1999 2000 1999 2000 * Estimated

  7. Enron Transportation ServicesBusiness Initiatives Increase Asset Efficiency and Reduce Costs Enhance System Flexibility; Anticipate Market Needs Introduce New Services Tailored to Complex Customer Requirements Add Capacity in Select Markets to Match Demand Maintain Strong Competitive Position in all Markets Served

  8. 100 Enron Assets Storage 50 Northern Natural Major Pipeline Interconnects Great Lakes 0 Viking Northern Border Trailblazer Northern Natural Gas Company Western Canadian Basin Extensive Access to Major Utilities and Industrials in the Upper Midwest Flexible Operations • Interconnections with 4 Major Pipelines in Market Area • Storage Capacity of 56 Bcf • Bi-Directional Flow Capabilities Over 85% of Revenues Comprised of Demand Charges 95% of Market Area Capacity Contracted Through 2003 Montana Minnesota North Dakota Michigan __ Bcf/d Wisconsin South Dakota Wyoming Rocky MountainBasins Market Area Nebraska Iowa Illinois Kansas Hugoton Basin Missouri Supply Area __ Bcf/d Anadarko Basin New Mexico Oklahoma Contracted Capacity (% of Total) Throughput (BBtu/d) Permian Basin 3,820 3,464 Texas 2000 2001 2002 2003 2004 2005 1999 2006

  9. Completed Agreement Great River Energy Peaking Plant May 2001 In-Service 2001 2002 2003 Storage 90-275 MW 463 MW • Customer Profile - Gas Fired Merchant Plant - 120 MMcf/d Peak Requirement - Situated Close to Main Pipeline • Enron Solution • No-Notice, Flexible Supply • Average Service of 50 MMcf/d • Peak Use 2.4 Times Average • 3-Year Term • Enron Benefits • Compliments Northern’s Summer Load Profile • Establishes Long-Term Customer 445 MW 200 MW 300 MW 500 MW 372 MW 150 MW Northern Natural Gas CompanyMarket Area Initiatives Minnesota Wisconsin 250 MW South Dakota Nebraska Iowa Illinois Market Area Missouri Kansas Supply Area 3,000 MW of Gas-Fired Power Plants Under Development in Close Proximity to Northern’s System Innovative Tariffs in Place to Provide Flexible Gas Supply-Related Services

  10. Permian Basin 100 50 0 2001 2002 2003 2004 2005 2006 Transwestern Pipeline Company Rates Improving Due to Increased California Demand Bi-Directional Flow Capabilities Provides Flexibility to Rapidly Adapt to Market Over 90% of Revenues Comprised of Demand Charges Nevada Colorado Utah San Juan Basin Kansas Anadarko Basin California Arizona 942 BBtu/d 697 BBtu/d Oklahoma New Mexico Texas Subscribed Capacity (% of Total) Throughput (BBtu/d) 1,639 1,462 2000 1999

  11. Nevada Colorado Utah San Juan Basin Kansas Anadarko Basin California Arizona 942 BBtu/d 697 BBtu/d Oklahoma New Mexico Texas Permian Basin Transwestern Pipeline Company Initiatives [Adding Customers - receipt and delivery points] [Park and Ride - description, examples]

  12. Georgia Alabama Louisiana Mississippi Texas Texas and Louisiana Onshore Mobile Bay and Deepwater Supply Florida Additional Gulf of Mexico Supply 100 50 0 Florida Gas Transmission Only Major Pipeline Serving Rapidly Growing Peninsular Florida Extensive Access to Natural Gas Supply Over 90% of Revenues Comprised of Demand Charges Over 99% Capacity Contracted Through July 2005 Throughput (BBtu/d) Contracted Capacity (% of Total) 1,601 1,495 1,601 1,495 2000 1999 2001 2002 2003 2004 2005

  13. Florida Gas Expansion Initiatives Three Major Expansions Underway Phase IV 198 $270 20 May 2001 Phase V 428 $460 20 April 2002 Phase VI 150 $200 Late 2003 Additional Demand-Driven Expansions • 8,700 MW of New Generation Proposed in Florida Through 2003 Evaluating Connections to ProposedLNG Facilities Capacity (Bcf/d) 2.2 Contract Term Expected In-Service Capacity Cost 2.1 (Mmcf/d) (Millions) (Years) 1.7 1.4 .9 .8 Phase I Phase II Phase III Phase IV Phase V Phase VI 2003E 2002E 1987 2001E 1995 1991

  14. Monchy North Dakota Minnesota Williston Basin Montana Wisconsin South Dakota Throughput (BBtu/d) Chicago Iowa 100 Illinois 50 0 2001 2002 2003 2004 2005 2006 Northern Border Pipeline Company Low-Cost Link Between Canadian Reserves and Midwest Market Fully Contracted Under Long-Term Agreements with an Average Remaining Life of Nearly 7 Years Extension to Heavy Industrial Zone in Indiana; In-Service Late 2001 Uncontested Rate Case Settlement Pending with FERC; Approval Expected First Quarter 2001 Western Canadian Basin [Project 2000 will be added back to this map] Existing Pipeline 2001 Extension Contracted Capacity (% of Total) 2,438 2,405 2000 1999

  15. Ft. Union Lost Creek Big Horn Northern BorderGrowth Initiatives Unregulated Gas Gathering Assets • $270 Million Invested in Rapidly Developing Wyoming Basins • 800,000 Acres of Dedicated Reserves • Additional $60-$70 Million Investment in Region Expected in 2001 Bison Pipeline • Evaluating 325 Mile Connection of Wyoming Production to Northern Border Pipeline [Changing Map to Show Connection of Bison to Power River] MONTANA Powder River Basin SOUTH DAKOTA Wind River Basin NEBRASKA WYOMING COLORADO

  16. Technology Benefits Automation of Compression, Measurement and Monitoring Reducing Costs and Operating Staff Scheduling and Gas Control Improvements Increasing Customer Flexibility - Nominations Cycles Increased From One Time to Six Times per Day Dynamic Modeling Programs Optimizing System Utilization; Maximizing Revenues and Throughput at Lowest Cost EnronOnline Used to Sell Capacity Quickly Throughput (Bcf/d) Expense (Millions) Operations Employees 3,100 $xx $xx 9.1 7.1 2,000 +35% -xx% -28% 1992 Today 1992 Today 1992 Today

  17. Safety Executive Order Issued November 2000; Final Gas Pipeline Integrity Rules Expected Spring 2001 • Enchancing Pipeline Safety Standards • Developing New Guidelines for Federal State Partnerships • Improving Public’s “Right-to-Know” Enron Continues Extensive Maintenance Program and Regular Audits of Operations Enron’s Safety Commitment Recognized by Industry • Awards for Low Work-Related Injury Levels • Incident Rate Well Below Average

  18. Operating Locations Headquarters Regional Business Centers Marketing/Operations Offices Asset Summary Active Pipelines (8,300 Miles) Trucks (260) Crude Oil Storage (15.1 Million Barrels) EOTT Energy Partners Leading Independent Crude Oil Gathering and Marketing Company Scale and Scope of Pipeline System Significantly Expanded with 1998 and 1999 Acquisitions Asset Locations Compliment Enron Natural Gas Pipelines Minimal Commodity Price Sensitivity

  19. Conclusion Strong Returns with Consistent Earnings and Cash Flow Well-Positioned Solid Competitive Position in All Markets Innovative, Market-Oriented Approach to Capture New Opportunities Select Expansion Projects Underway to Meet Increased Demand for Natural Gas

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