5 th Annual Pipeline Development & Expansion

Transcription

1 5 th Annual Pipeline Development & Expansion Market Dynamics; Basis Differentials and Flows; Oil, Gas, and NGL Project Development September 23-24, 2010 * The Hyatt Regency Houston * Houston, Texas Day One Thursday, September 23, :15 Conference Registration and Continental Breakfast 8:15 Chairman's Welcome and Opening Remarks Mark K. Lewis, Partner, Bracewell & Giuliani LLP Markets, Economics, and Play Comparisons 8:30 Oil and Gas Markets Where to From Here? Supply, Demand, Price, and Basis Realignment of supply New plays and the shift toward liquids The outlook for gas demand Recovery in sight? Oil and gas prices The drivers behind differing values o six (or more) dollars of separation Gas basis Where is the value? The need for new pipes The where and the when Shifts in flows A forward view Edward Kelly, Vice President, North American Gas and Power, Wood Mackenzie Inc. 9:00 The End of King Coal? There is an interesting expression that producers have used recently that suggests that the obvious cure to low natural gas prices is well, low gas prices. There is just one nagging problem the recent recession has accelerated the longer term decline of the U.S. manufacturing base. Given the bricks and mortar problem of growing industrial demand, we think the promise of true demand growth will likely come from the electric power segment. Why electric power demand holds the key to mid-term growth for natural gas demand Examine recent coal to gas fuel-switching Potential for natural gas to capture a larger portion of the market share away from coal generators

2 Teri Viswanath, Director, North American Natural Gas, Commodities Research Credit Suisse Securities (USA) LLC 9:30 The Outlook for Natural Gas Vehicles Now more than ever, natural gas is positioned to capture a growing share of the nation s transportation fuels market. Federal incentives for the fuel, climate change policy, interest from producers and other market sectors, an expanded line-up of available natural gas powered vehicles, and excellent economics are helping to shape a growing market for NGVs. Federal policies that are helping shape the market for NGVs The economics behind NGVs The growing list of manufacturers who produce NGVs How increased domestic supplies are creating new interest in natural gas as a transportation fuel Fleets that present the best market opportunity for NGVs How climate change policy could encourage increased use of NGVs What other people are saying about the Pickens Plan Jeffrey Clarke, General Counsel & Director Regulatory Affairs, NGVAmerica 10:00 Potential for LNG Export from North America North American reserves and demand Global LNG supply and markets LNG prices and projected flows Cost considerations Regulatory and policy considerations Davis Thames, President, Cheniere Marketing LLC 10:30 Networking & Refreshment Break 11:00 Differentiating Plays, Pipelines, and Prices Production costs, productivity improvements and break-even analysis o shales and tight sands plays o shift to oil, liquids/high-btu plays o implications for conventional plays o production outlook Impact of pipeline development and expansion o full and incremental transportation costs o flows and capacity constraints Outlook for basis differentials Flattening of spreads o Winter o longer term Rusty Braziel, Managing Director & Vice President, Bentek Energy LLC 11:45 Current Developments in Pipeline Finance This session provides a brief overview of recent developments in pipeline construction financing, including the impact of the financial crisis on project financing generally, and

3 the potential implications of the financial regulatory reform and the Deepwater Horizon disaster What s market practice in 2010 and why Examine the impact of financial crisis now and in the future Impact of Regulatory Reform Legislation Renewed focus on environmental impact of energy industry What challenges lie ahead? Catherine Ozdogan, Partner, Bracewell & Giuliani LLP 12:15 Luncheon Gas Pipeline Projects Plans and Progress 1:30 Rockies To West and Mid-West El Paso s Ruby Within the flurry of pipeline expansions connecting new supplies to market, Ruby is the only major project designed to move gas from the Rockies to the west coast. Learn why Ruby chose a westward route for this new outlet, providing market diversity for Rocky Mountain producers and supply diversity to Northern Nevada, Northern California, and the Pacific Northwest. $3 Billion 1.5 Bcf/d pipeline connecting Opal, WY to Malin, OR FERC Certificate received Construction and cost updates In-service timeline Market outlook Thomas L. Price, Vice President, Marketing & Business Development, El Paso Western Pipelines Bison Plans and Progress Connecting Powder River Basin production to markets at Ventura and Chicago via Northern Border Pipeline 302 miles of 30 from Dead Horse, WY to Morton County, ND Construction schedule In-service -- Nov Commercial update Firm contracts for +400,000 Mcf/d Sized and positioned to capture future growth Dean Ferguson, Vice President, US Pipelines West, TransCanada PipeLines 2:30 Haynesville Enbridge East Texas Haynesville Shale Expansion Mr. McGill discusses how Enbridge intends to service the East Texas Haynesville Shale Expansion by constructing more than 200 miles of large diameter pipe to meet the

4 growing natural gas transportation market in Nagocdoches, Shelby, and San Augustine counties of East Texas. Who is Enbridge Energy Company, Inc. and where we do business What the Haynesville Shale Expansion is all about How Enbridge intends to service the Haynesville Shale Expansion What markets Enbridge can provide its services to Our services footprint in Texas and Oklahoma How technology is helping drive this play Where this is all potentially headed Terrance L. McGill, President, Enbridge Energy Company, Inc. 3:00 Networking & Refreshment Break 3:30 Marcellus [Case Studies] Marcellus Overview and Tennessee Projects Increasing production from the Marcellus shale is changing flow patterns across the pipeline grid. Starting with a regional macro of forecasted supply and demand patterns over the next 10 years, this presentation highlights the operations associated with Marcellus production, identifies key constraints in accessing markets, and discusses expansion opportunities to ultimately overcome those constraints. Understand the relative resource base associated with Marcellus Shale Learn how flow patterns are changing across the pipeline grid Identify key constraints in gaining access to markets Identify pipeline expansion projects that can eliminate those constraints Tennessee projects, including Northeast Upgrade Stan Chapman, Vice President, Marketing, Development, & Asset Optimization, Tennessee Pipeline Company Iroquois NYMarc-Penn Option Project Review the various projects that Iroquois is developing to attach Marcellus Shale supplies to the Iroquois pipeline system. Hear an overview of Iroquois attached market and multiple pipeline interconnections, and discuss the benefits that Marcellus producers will derive from participating in a project to deliver gas east of the Hudson River. Project description Markets connected directly to Iroquois and the value of Iroquois northeast infrastructure The value proposition between Marcellus and Iroquois Market growth potential in southwestern Connecticut, Long Island, and New York City Value of underpinning pipeline infrastructure that serves east of the Hudson River markets The opportunity for Marcellus producers to improve their overall supply netback

5 Scott E. Rupff, Vice President, Marketing, Development & Commercial Operations, Iroquois Pipeline Operating Company [Case Studies] National Fuel Gas -- Northern Access and Tioga County Extension Projects Two National Fuel Gas pipeline companies develop projects to move significant Marcellus production north to interconnections with TransCanada Pipeline and Tennessee Gas Pipeline. National Fuel Gas Supply Corp. and Empire Pipeline, Inc. reverse flow on existing systems to move nearly 700 MMcfd in first phase expansions to strong markets at Niagara. Designed to move Marcellus production north to: o TransCanada Pipeline at Niagara/Chippawa o Tennessee Gas Pipeline s 200 Line Empire Pipeline s Tioga County Extension o 350 MMcfd o Projected in-service September 2011 Supply Corp s Northern Access Project o 320 MMcfd o Projected in-service June 2012 Update on project costs Project rates Status of customer contracts Regulatory progress Phase II expansions Other Marcellus transportation initiatives Ronald C. Kraemer, President, Empire Pipeline, Inc.; Vice President, National Fuel Gas Supply Corp. [Case Studies] Dominion Marcellus Development Projects Appalachian Gateway Marcellus Northeast Project Marcellus 404 Project Keystone Connector Project Other projects Jeffrey L. Keister, Director, Gas Business Development, Dominion Transmission, Inc. Transco - Connecting Marcellus Supply to Northeast Markets The Marcellus Shale is quickly developing into a major supply source for Northeast customers. Transco has several projects underway that will make that supply available to a wide range of customers all along the East Coast route. Learn more about the projects Transco is developing to make Marcellus supply accessible to East Coast markets Projects include Northeast Connector, Rockaway Lateral, and Northeast Supply Link

6 Where Marcellus supplies are being connected to Transco s system Understand flows on Transco in the Northeast and how Marcellus supply may impact the system Jim C. Moore, Director, Business Development, Williams Gas Pipeline -- Transco [Case Studies] Spectra s Footprint, Plans and Progress New Jersey/New York Expansion o shipper agreements signed with Chesapeake Energy and Statoil Natural Gas JV and Con Edison o adds 800 million cubic feet/day o 16 miles of new pipeline between Texas Eastern and new Con Edison interconnect TEAM Expansion Program (SW Pennsylvania and West Virginia Marcellus) o TEAM 2012 shippers are Range Resources and Chesapeake Utilities o TEAM million cubic feet per day expansion in FERC Prefiling o TEAM 2013 under active development Aggressive Producer Interconnection Program Existing footprint provides significant benefits to shippers. William C. Penney, Jr., Vice President, Northeast Business Development, Spectra Energy 6:00 Close of Day One 6:00-7:00 Wine & Cheese Networking Reception Day Two -- Friday, September 24, :45 Continental Breakfast 8:15 Chairman's Review of Day One Mark K. Lewis, Partner, Bracewell & Giuliani LLP 8:30 Eagle Ford Enterprise Products Partners Eagle Ford Shale Mainline and Related Systems Route Benefit Capacity Timeline Thomas M. Zulim, Senior Vice President, Enterprise Products Partners L.P. Eagle Ford Gathering, LLC A Kinder Morgan / Copano Energy Joint Venture

7 We discuss the historic relationship and interconnectivity of the Kinder Morgan intrastate pipeline system in South Texas with Copano s Houston Central Plant and gathering systems and examine why the joint venture was a logical extension of this relationship and the drivers for success. How to structure a win-win joint venture relationship Structuring creative midstream service solutions for Eagle Ford producers Determine the market for such services Optimization of existing infrastructure Potential expandability of the systems to accommodate growing volumes of gas, NGLs, and condensate Timeline of expansions Jim Wade, President & COO, Texas Business Segment, Copano Energy, L.L.C. 9:30 Impact of Gas Pipeline Projects and New Plays on Gas Transport This presentation investigates how pipeline flows and basis are likely to change throughout the U.S. and Canada during the next 10 years as supply continues to grow from a number of emerging unconventional plays. We examine the impacts of changing gas supply and demand on specific corridors and pipelines. How are gas flows across the continent likely to change: o which corridors will benefit most? o which corridors will be most threatened? What will happen to pipelines entering the Northeast as Marcellus production grows? Will Marcellus become a basis killing monster, as some have suggested, or merely a gas displacing demon? What is the difference? What about the west? How will Ruby and other potential projects (for example: an LNG exporting facility in BC) impact Western Canada, the Rockies, and the U.S. West Coast? How is the TransCanada rate dilemma affecting markets? Haynesville, Fayetteville, Eagleford, and Woodford What are the impacts of these Gulf Coast and Midcontinent plays on Mid-Continent pipelines? What are the implications for LNG and how does that change flows? Is LNG becoming superfluous? What are the prospects for a true Perryville or other new Hubs Kevin Petak, Vice President, Gas Market Modeling, ICF International Crude and NGL Pipeline Projects 10:00 Progress on TransCanada s Keystone Pipeline Overview Market drivers/benefits Pipeline and facilities design Construction schedule and update Operations update

8 Ken Murchie, P.Eng., Director, Keystone Facilities Development & Implementation, TransCanada PipeLines 10:30 Networking & Refreshment Break 11:00 Bakken Kinder Morgan Crude on Cochin Multi-Product Pipeline Route Benefit Capacity -- Up to 30,000 b/d Tariff rates Daniel L. Rial, Director, Business Development, Mid-Continent, Kinder Morgan Energy Partners LP Infrastructure Solutions for the Bakken and Three Forks The resurgence of oil production in the Williston Basin is a major story. Mr. Hatfield speaks to the recent growth of and projections for the Williston Basin Bakken and Three Forks production, and discusses the multiple phases of expansion that the Enbridge Gathering Systems have undertaken and continue to take to meet the growing oil production in Southeast Saskatchewan, North Dakota, and Eastern Montana. What is the story of The Bakken Why Enbridge Gathering Systems is well positioned to contribute to the success of the Bakken and Three Forks What Enbridge has already done to increase pipeline capacity for its customers, and what it intends to do How big is this play ultimately going to be? Kevin Hatfield, General Manager, Gathering System, Enbridge, Inc. Bridger s Four Bears Bakken Extension Accessing multiple markets Reducing overall cost to market Platform for Bridger Expansion Henry (Tad) A. True, Vice President, Bridger and Belle Fourche Pipeline 12:15 NGL Pipeline -- Kinder Morgan Marcellus to Cochin Route, 250 miles Benefit Capacity Timeline Cost Don Lindley, Vice President, Business Development, Products Pipeline Group, Kinder Morgan

9 12:45 Close of Conference