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El Paso Corporation Overview. El Paso Corporation provides natural gas and related energy products in a safe, efficient, dependable manner. We own North America's largest natural gas pipeline system and are one of North America's largest independent natural gas producers. We are organized around reg
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1. Ruby Pipeline Wyoming Pipeline Authority
January 15, 2008
2. El Paso Corporation Overview El Paso Corporation provides natural gas and related energy products in a safe, efficient, dependable manner. We own North Americas largest natural gas pipeline system and are one of North Americas largest independent natural gas producers. We are organized around regulated and non-regulated businesses.
3. El Paso Pipeline System
4. Ruby Pipeline Map
5. Ruby Capacity and Facilities Design and rates are based upon 1.2 Bcf/d of capacity
680 miles from Opal to Malin
42, 1,440 psig pipe design
Most cost effective design taking fuel and expansion opportunities into consideration
Compressor stations
Opal ~45,400 HP (site rating)
Midpoint ~18,200 HP (site rating)
Fuel from Opal ~0.9%
Four delivery point interconnects and five receipt point interconnects
Expandable to 2 Bcf/d with compression
6. Ruby Highlights to Date 1.2 Bcf/d pipeline from Opal to Malin
Ownership structure
El Paso Western Pipelines
PG&E Corporation
Bear Energy
During past 5 months, Ruby Project has been presented to most Rockies producers and some western markets under Confidentiality Agreements
Ruby filed an application with the BLM in November to construct a pipeline between Opal and Malin
Negotiations with pipe mills and contractors have been ongoing for over 6 months
Estimate has been finalized during this process
Approximately 50% of firm capacity has been committed
Ruby requires firm capacity commitments of 1.2 Bcf/d to be constructed
7. Rockies versus Western CanadaLong-Term Production Trends El Paso Base case suggest 9,650 Bcfd of export capacity needed (currently 6,200 in 2007) to meet 85% LF requirement
El Paso High case suggest 12,000 Bcfd of export capacity needed (currently 6,200 in 2007) to meet 85% LF requirementEl Paso Base case suggest 9,650 Bcfd of export capacity needed (currently 6,200 in 2007) to meet 85% LF requirement
El Paso High case suggest 12,000 Bcfd of export capacity needed (currently 6,200 in 2007) to meet 85% LF requirement
8. Rocky Mountain Production by Basin
9. Projected Gas Flowswith Ruby
10. Ruby Proposed Next Steps
11. Ruby Schedule Highlights
12. Market Overview
13. U.S. West CoastDistinct Gas Markets Pacific Northwest 600 Bcf/yr
14. Malin Takeaway 2.2 Bcf/d firm takeaway capacity plus displacement on GTN at Malin
Access to west coast market:
Northern/Central California via Pacific Gas and Electric Company
Northern Nevada via Tuscarora Gas Transmission
Pacific Northwest via GTN and indirectly to Williams Northwest Pipeline and Avista Utilities
Southern California via deliveries off PG&E system
Access to 82 Bcf of underground storage
PG&E (CA): 42 Bcf
Wild Goose (CA): 24 Bcf *
Lodi (CA): 16 Bcf *
15. Northern/Central California Market2006 Demand 2006 annual gas demand of 835 Bcf
Annual growth forecasted at 1.3% through 2025
Results in incremental requirement of 67 Bcf of annual gas demand by 2012
2006 peak day demand was 3.5 Bcf (2007 peak day of 3.9 Bcf)
PG&E, Wild Goose and Lodi storage fields serve peak day demands
Two strong gas demand periods
Winter: Large residential demand
Summer: Large gas-fired generation load and storage injections
16. Northern Nevada Market2006 Demand Annual gas demand of 64 Bcf
Annual growth forecasted at 4.0% through 2016
Results in incremental requirement of 17 Bcf of annual gas demand by 2012
Seasonal demand
2006 Peak day demand was 0.32 Bcf
Lovelock LNG storage (1.0 Bcf) located near Reno, NV serve peak day demands
Ruby interconnects with both Paiute (near Lovelock) and Tuscarora (at Malin)
17. Pipelines in Northern Nevada Northern Nevada is served via two pipelines (Tuscarora and Paiute)
Paiute Pipeline
Largest customers: SWG, Sierra Pacific
96% of transport contracts
155 MDth/d receipt capacity from NWPL
~75 MMcf/d sources from Canadian supply
NWPL contracts expire by 2009
System operates at an average load factor of 71%
Tuscarora Gas Transmission
Largest customers: Sierra Pacific, SWG, Barrick Gold
Represent 96% of transport
Certificate issued 7/24/07 for an expansion of 40 MDth/d that will serve the Tracy Power Plant (514 MW)
22.5-year contract with Sierra Pacific Power (40 MDth) upstream of Malin
SWG and Barrick do not hold capacity on upstream pipe
18. Pacific Northwest (PNW) Market2006 Demand Annual gas demand of 600 Bcf
Annual growth forecasted at 2.1% through 2012
Results in incremental requirement of 80 Bcf of annual gas demand by 2012
2006 peak day demand was 2.9 Bcf
Jackson Prairie, MIST and Clay Basin storage fields serve peak day demands
Gas-fired power generation load varies depending on hydro power availability
Demand is more seasonal
19. Contacts Ed Miller
Business Development
719.520.4305
Edward.Miller@elpaso.com
Roland Harris
Business Development
719.520.4380
Roland.Harris@elpaso.com
Russ Council
Engineering
719.520.4865
Russ.Council@elpaso.com
Jennifer Webster
Government Affairs
719.520.4327
Jennifer.Webster@elpaso.com Dan Fitzgerald
415.267.7041
Daniel.Fitzgerald@pcgpipeline.com
Jeff Rawls
713.236.3380
JRawls@bear.com
20. Ruby Pipeline Wyoming Pipeline Authority
January 15, 2008