Transcript Slide 1
Pipeline & Storage
Expansion Projects Overview
March 2010
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Expansion Projects Overview – March 2010
Pipeline & Storage
Planned Projects
Lamont Expansion
Line N Expansion
Tioga County Extension
West to East (Phases I and II)
Storage Expansion
Y-M53 Direct Interconnects
Northern Access Expansion
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Expansion Projects Overview – March 2010
Overlay service territory on base
map Map
[Add SRC acreage]
National Fuel System
& NFGDC Service Territory
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Expansion Projects Overview – March 2010
Lamont
Expansion
Map
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[Add SRC acreage]
New Compression
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Expansion Projects Overview – March 2010
Pipeline & Storage
Lamont Project Facilities
Ellisburg
New 1,150 HP
compressor station in
Elk County, PA
Capacity: 40,000 Dth/d
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Lamont
Leidy
Delivery point of TGP at
Lamont
Expandable w/ 2nd unit
to 80,000 Dth/d
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Expansion Projects Overview – March 2010
Pipeline & Storage
Lamont Project Description
Phase I Estimated Cost: $6 million
Phase I Timeline:
Construction under FERC Blanket Certificate
Planned Construction: March 2010
Planned In-Service: June 2010
Precedent Agreements:
Seneca Resources for 30,000 Dth/d
EOG for 10,000 Dth/d
Phase II Precedent Agreement for 10,000 Dth/d
Phase II Service Request for 40,000 Dth/d
Annual Revenue of $1.7 million each Phase
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Expansion Projects Overview – March 2010
Line N
Expansion
Map
[Add SRC acreage]
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New Compression
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Expansion Projects Overview – March 2010
Pipeline & Storage
Line N Expansion Project Facilities – Phase I
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New 4,700 HP compressor
station in Washington County, PA
2 miles of 20” Line N
replacement north of I-70
Capacity of 150,000 Dth/d
Delivery point of TETCO at
Ryerson (Holbrook) Station (M2)
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Expansion Projects Overview – March 2010
Pipeline & Storage
Line N Expansion Project Description – Phase I
Estimated Cost: $23 million
Timeline:
FERC NEPA Pre-filing October 20, 2009
Planned FERC 7(c): April 2010
Planned Construction: November 2010
Planned In-Service: November 2011
Precedent Agreements with Range Resources for
150,000 Dth/d for 11 years
Annual Revenue of $6.4 million
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Expansion Projects Overview – March 2010
Pipeline & Storage
Line N Expansion Project – Phase II
Increase capacity to 300,000 Dth/d
Facilities:
7,000 HP expansion of proposed Buffalo Compressor Station
Possible 6-mile pipeline replacement suction side of station
Estimated Cost: $20-31 million
Service Available: November 2012 or 2013
Open Season closed on February 26, 2010
Annual Revenue up to $6.4 million
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Expansion Projects Overview – March 2010
Tioga County
Extension
Map
[Add SRC acreage]
New Compression
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Expansion Projects Overview – March 2010
Pipeline & Storage
Tioga County Extension Project Drivers
Existing Tennessee Gas Pipeline “300 Line” is at
capacity
Strong “backwards” basis differential
Provides incremental transportation capacity for
Marcellus Production to TGP 200 Line, TransCanada,
Millennium, and on-system markets
Reverses flow on existing system minimizing
incremental facilities
Direct-connect production in Tioga County, PA and
eventually Steuben County, NY
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Expansion Projects Overview – March 2010
Pipeline & Storage
Tioga County Extension Project Facilities – Phase I
Facilities:
New TGP
Interconnect
Corning Station
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16 miles of 24” diameter 1,290 psig
pipeline
1.35 miles of 24” diameter “Lift and
Lay” pipeline replacement
New interconnection with TGP “200
Line”
Modifications to TransCanada
measurement and control
Possible modifications to Oakfield
Compressor Station
Capacity of at least 300,000 Dth/d
Delivery points of TransCanada,
TGP, and Millennium
Estimated cost of incremental
facilities: $45 million
Expansion Projects Overview – March 2010
Pipeline & Storage
Tioga County Extension Project Description – Phase I
Timeline:
NEPA Pre-filing January 28, 2010
Planned FERC 7(c): August 2010
Planned Construction: May 2011
Planned In-Service: September 2011
Precedent Agreements:
East Resources for 200,000 Dth/d for 10 years
2nd Producer for 150,000 Dth/d for 10 years anticipated
Annual Revenue of $29.4 million
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Expansion Projects Overview – March 2010
Pipeline & Storage
Tioga County Extension - Phase II
New TGP
Interconnect
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Corning Station
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Project expansion further south
to TGP 300 Line
Facilities:
Approximately 20 miles of 24” pipeline
Compression in Tioga County, PA to TGP
Mainline compression in Ontario
County, NY
Combined capacity of 550,000 to
600,000 Dth/d without looping
Open Season envisioned for 3Q
FY 2010
Potential in-service 2013
Expansion Projects Overview – March 2010
West to East
Phase I & II
Map
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Leidy
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Phase II
Phase I
[Add SRC
acreage]
New Compression
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Expansion Projects Overview – March 2010
Pipeline & Storage
West to East – Phase I & II Project Overview
Provides transportation capacity to Leidy
Production access from Elk, Jefferson, Clearfield,
Cameron, Clinton, Clarion, Forest, McKean, and
Potter Counties
Critical infrastructure for SRC legacy acreage
development
Project may be constructed in 2 phases as
production ramps-up
Utilized existing infrastructure and ROW’s to
minimize new facilities
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Expansion Projects Overview – March 2010
Production Drainage from:
•3 Million Acres
•301 Miles of Pipeline
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Expansion Projects Overview – March 2010
Pipeline & Storage
West to East Phase I & II Project Description
Facilities Phase I:
Facilities Phase II:
39 Miles of 24” 1,440 psig pipeline
4,000 to 7,000 HP @ Station in
Moshannon State Forest
Interconnections at Leidy
Proposed Compressor
Station Site
Possible Compressor
Station Sites
SOUTHERN
NFGSC WEST to EAST (PHASE II)
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NFGSC WEST to EAST (PHASE I)
43 Miles of 24” 1,440 psig pipeline
18,000 to 21,000 HP @ Station at
Heath Station
Interconnections at Leidy
Minimum combined
capacity of 425,000
Dth/d
Delivery points of
Transco, TETCO, and
DTI @ Leidy
Estimated combined
cost of $260 million
Expansion Projects Overview – March 2010
Pipeline & Storage
West to East Phase I & II Project Description
Timeline:
FERC NEPA Pre-filing March 2010
Planned FERC 7(c): September 2010
Planned Construction: March 2011
Planned In-Service Phase I: November 2011
Planned In-Service Phase II: November 2012
Precedent Agreements:
Seneca Resources 100,000 Dth/d for 15 years
2 Producers for 75,000 Dth/d for 15 years (credit open)
Ongoing post-open season negotiations
Annual Revenue of $51 million at full subscription
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Expansion Projects Overview – March 2010
Pipeline & Storage
West to East Next Phases
Appalachian Lateral:
2 routes still under
consideration
Processing facilities
required
100 – 190 miles of 24” pipeline and compression
In-service target 2013
Market
High Btu
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Direct-connect production Butler, Armstrong and
Clinton counties
SW PA – market diversification at Leidy and Niagara
Expansion Projects Overview – March 2010
Storage
Expansion
Map
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Leidy
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Phase II Phase I
[Add SRC acreage]
New Compression
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Expansion Projects Overview – March 2010
Pipeline & Storage
East Branch & Galbraith Storage Project Facilities
East Branch Storage Facilities:
Roystone C
30 new wells
11.7 miles 4 – 20” pipe
9,470 HP compression at Roystone Station
Galbraith Storage Facilities:
East Branch
5 new wells
0.7 miles 4” pipe
1,775 HP compression at Knox Station
Total Expansion:
Knox C
Galbraith
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7,900,000 Dth of 90-day service
Delivered via West to East Phase I & II to Leidy
Estimated Cost: $64 million
Expansion Projects Overview – March 2010
Pipeline & Storage
East Branch & Galbraith Storage Project Facilities
Timeline:
Planned FERC 7(c): Late 2010
Planned Construction: 2012
Planned In-Service: April 2013 (Galbraith possible in 2012)
Precedent Agreements:
Negotiating with 2 LDC’s
Requires delivery point change to Leidy from Corning
Annual Revenue of $16.9 million @ $2.05/Dth
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Expansion Projects Overview – March 2010
Y-M53 Direct
Interconnects
Map
Leidy
Phase II Phase I
[Add SRC acreage]
New Compression
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Expansion Projects Overview – March 2010
Pipeline & Storage
Y-M53 Direct Interconnections
Potter County production to Transco at Leidy
Metering and Control at Leidy required
Ellisburg
Capacity up to 150,000 Dth/d
Y-M53
Leidy
“Leveraging” turnback Niagara capacity
Estimated cost less than $1 million
Timeline:
FERC Blanket Certificate
In-service as early as 2010
Precedent Agreements:
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Requires JV negotiations on capacity rights
Negotiating Post-Open Season
Expansion Projects Overview – March 2010
Niagara
Northern Access
Expansion
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East Aurora
Ellisburg
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Map
Leidy
Phase II
Phase I
[Add SRC acreage]
New Compression
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Expansion Projects Overview – March 2010
Pipeline & Storage
Northern Access Project Facilities
Compression at Ellisburg
and East Aurora
Modification to
Lockport compressor
station and Niagara
measurement
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Requires Niagara Spur
Loop Line JV
negotiations on capacity
rights
Pipeline looping may be
required
Capacity: at least
320,000 Dth/d
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Expansion Projects Overview – March 2010
Pipeline & Storage
Northern Access Project Description
Niagara production to TGP 200 Line and TransCanada Niagara
Source: TGP 300 Line, Transco-Leidy, and Potter County
Estimated cost approximately $50 million
Target in-service: 2012
Open Season closed February 17, 2010
Service requests for 1.6 Bcf/d
Awarding 320,000 Dth/d
Evaluating additional capacity up to 450,000 Dth/d
Annual Revenue at least $13.6 million
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Expansion Projects Overview – March 2010
Pipeline & Storage
Projects on the Horizon
Lamont Expansion – Phases I and II
Line N Expansion – Phases I and II
Tioga County Extension – Phases I and II
West to East (Phases I and II) – Phases I, II, and II
Storage Expansion – East Branch and Galbraith
Y-M53 Direct Interconnects
Northern Access Expansion
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Expansion Projects Overview – March 2010
Niagara
East
Aurora
National Fuel
Proposed System
Expansion
Map
Ellisburg
Leidy
Phase II Phase I
[Add SRC acreage]
New Compression
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Expansion Projects Overview – March 2010