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:
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Construction under FERC Blanket Certificate
Planned Construction: March 2010
Planned In-Service: June 2010
 Precedent Agreements:
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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:
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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:
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New TGP
Interconnect
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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:
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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:
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 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
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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:
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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
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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:
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Roystone C
30 new wells
11.7 miles 4 – 20” pipe
9,470 HP compression at Roystone Station
 Galbraith Storage Facilities:
East Branch
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5 new wells
0.7 miles 4” pipe
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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
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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
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Ellisburg
 Capacity up to 150,000 Dth/d
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Y-M53
Leidy
“Leveraging” turnback Niagara capacity
 Estimated cost less than $1 million
 Timeline:
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FERC Blanket Certificate
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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