Alliance Pipeline B.C. Natural Gas Symposium

Transcription

1 Alliance Pipeline B.C. Natural Gas Symposium Daniel Sutherland Vice President, Business Development June 4, 2014

2 Forward-Looking Information Certain information contained in this presentation constitutes forward-looking statements. The words anticipate, expects and expected to and similar expressions are intended to identify such forward-looking statements. Although Alliance believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties including, but not limited to, future operating performance, regulation, economic conditions and fundamentals affecting the oil and gas producing and marketing industries. Should one or more of these risks or uncertainties materialize or fail to materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. 2

3 Proposed and Potential LNG Export Facilities Proposed LNG Facility Potential LNG Facility Source: FERC 3

4 Alliance Aux Sable Overview System Capability 1.6 Bcf/d capacity from WCSB to Chicago Ability to transport up to 1,150 Btu/cf gas Transporting in excess of 100,000 bpd of NGL s Reliability over 99% Benefit from Aux Sable facilities Immediate and economic access to markets 4

5 ACE Hub Alliance Chicago Exchange ACE Hub Services and Connections: Enhanced Title Transfers Interruptible Wheeling (IW) Park and Loan (PAL) 5

6 Unique NGL Transport Capability Approved limit of 1,150 Btu/cf Currently operating at ~1,110 Btu/cf (Current) (August 2013) 6 Source: WCSB and Midwest pipeline websites, Alliance website

7 Connectivity to Aux Sable Adds Value for Producers Aux Sable provides custom Rich Gas Premiums A payment related to the NGL content in a producers sales gas stream Enables producers to focus capital on production Connected to growing rich gas supply regions Provides producers with a flexible, cost competitive means to access large, transparent, and premium growth markets in the U.S. and internationally 7

8 Immediate and Competitive Alternative for LNG Alliance an existing, economic solution with immediate access to markets First B.C. LNG projects still awaiting investment decisions Long-term market portfolio alternative for rich gas plays Access to U.S. Gulf Coast based pricing Optionality while LNG outcomes get sorted 8

9 NGLs and Condensate Are Driving the Drill Bit Forecasts show aggressive growth in WCSB Gas and NGL production With Cochin s reversal NGL outlets out of the WCSB have been reduced Alliance reaches a large and transparent NGL market kbpd AB & BC NGL & C1 Production C1 High NGL Base NGL Bcfd

10 Growing Demand from U.S. Midwest 10 Source: Wood Mackenzie - Spring 2014

11 Connection to Large Demand Market Where Prices Can Spike 45 AECO & Chicago Gas Prices ($US Dth) AECO Chicago /01/ /01/ /01/ /01/

12 Market Access and Optionality 12 Source: Aux Sable, May 2014, Linking Supply to Demand

13 Growing U.S. Propane Export Capacity 13 Source: CIBC, Oil & Gas Journal, company reports

14 New Services Offering Predictable and competitive fixed tolls Receipt zone and transmission shippers in addition to full-path service New services to enable optimization of rich gas transport Premium Markets 14 14

15 Commercial Initiatives to Optimize NGL Capabilities Hydrocarbon Dewpoint Change Optimize Alliance s NGL carrying capacity: Firm Rich Gas Service (FRGS) Shipper Paired Gas (SPG) Authorized Rich Gas Overrun Service (ARGO) FRGS SPG ARGO 15

16 Adding Rich Gas Receipt Connections Since 2010, Alliance has completed / approved construction of receipt points adding approximately 1 Bcf/d of new capacity In 2013 alone, four new receipt points representing about 425 mmcf/d were added Additional liquids-rich gas to be connected in 2014 About 3.6 Bcf/d of production currently connected to Alliance 16

17 Summary Customer-oriented approach Strong and reliable asset Rich gas advantage, focus capital on the drill bit One stop solution Access to growing, liquid and transparent market pricing Immediate and competitive alternative to LNG facilities Known costs and shorter contracts retain optionality Regulatory application filed 17

18 Contacts Daniel Sutherland Vice President, Business Development Direct: (403) Bob Blattler Director, Supply and Market Development Direct: (403)