Portable Natural Gas Supply Solutions

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Portable Natural Gas Supply Solutions Presented by Dimitri Karastamatis, P.E. September 22, 2015

Overview CenterPoint Energy Mobile Energy Solutions Pipeline Integrity Portable Gas Supply (CNG & LNG) Other Utility Applications 2

CenterPoint Energy CenterPoint Energy a domestic energy delivery company providing: Electric transmission and distribution in Houston (over 2.2 M customers) Natural gas distribution in 6 states (over 3.3 M customers) Competitive natural gas sales in several states east of the Rockies Intrastate pipeline (primarily in TX) Enable Midstream Mobile Energy Solutions 3

Mobile Energy Solutions CENTERPOINT ENERGY MOBILE ENERGY SOLUTIONS Who is Mobile Energy Solutions? 4

Mobile Energy Solutions Mobile Energy Solutions a division of CenterPoint Energy providing portable natural gas for over two decades: Portable natural gas pipeline CNG and LNG Storage Supply Delivery Solutions for a variety of applications 5

Pipeline Integrity PIPELINE INTEGRITY What is it and how is it affecting natural gas pipelines, distribution companies and their customers? 6

Rules and Regulations The objectives of the rules were to: Accelerate integrity assessment of pipelines in HCAs Improve pipeline company integrity management systems Improve the government s role in reviewing the adequacy of pipeline integrity programs and plans Provide increased public assurance of pipeline safety The U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) is responsible for regulating the activities of natural gas pipelines and distribution companies Reassessment intervals are driven by the specifics of a pipeline s condition and environment 7

Impact on Industry The US has more than 105,000 miles of Intrastate Pipelines and more than 195,000 miles of Interstate Pipelines. 8

Impact on Industry *Taken from a presentation titled PHMSA Update: Aging Infrastructure and Integrity Verification Process given at the August 15, 2013 NAPCA Workshop. Pre 1970s pipe 1970s and post pipe 9

Assessment Methods Pipeline operators have several options available to them for assessing the safety of a pipeline. The two most invasive options, which also provide the most complete assessment: Inline inspection tools (smart pigs) Pressure testing A pressure test means there will be no pipeline gas available during the test. With is no alternative supply, customers are left without service for the duration of the assessment ILI tools are less invasive. However, a pipeline may still require a tap to be taken out of service while the tool passes by, which means the customer could be without service for up to a couple of hours. Depending on line pack available, this may or may not be an issue. 10

Portable Gas Supply PORTABLE GAS SUPPLY What role does it play? 11

CNG Basics CNG 12

CNG Considerations Why CNG: Quick response Smaller volumes No impact to customers No customer equipment modifications required Seamless transitions from and back to pipeline gas CNG comes odorized 13

LNG Basics LNG 14

LNG Considerations Why LNG: Accommodates higher flow rates More volume per tanker Minimal impact to downstream customers LNG is not odorized 15

Planning Safety is #1 Operator Qualification Training Project Planning Key stakeholders Engineering, Operations, Gas Control, Contractors, Gas Marketers, Customers Gas Management Plan and Communications Project Requirements Overpressure protection Remote pressure monitoring Temperature monitoring Heaters Risk Assessment 16

Other Utility Applications OTHER UTILITY APPLICATIONS 17

Other Utility Applications Other applications: Winter peak shaving Interim supply Emergency supply Maintenance related outages Capturing blow down gas to reduce Fugitive Emissions 18

Thank You Dimitri Karastamatis, P.E. Office: 713-207-5624 Cell: 713-303-8499 dimitri.karastamatis@centerpointenergy.com 19