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Pivotal Development:
Regions of Possibilities
Dana Grams
Senior Vice President, Pivotal Development
Pivotal Energy
• Pivotal Energy Development formed within AGL Services
Company in August 2003
• Pivotal coordinates development, construction and/or
acquisitions that complement current assets
• Focused primarily in Southeast and mid-Atlantic regions
(that’s our “sphere of influence”)
• Improve service to our customers through:
– Increasing reliability of service
– Reducing cost of service
2003 Analyst/Investor Conference
2
Opportunities for Pivotal
Now:
•
Capacity requirements for our distribution
companies are changing
Now:
•
Our distribution companies’ contracts for firm
transportation services are expiring
Soon:
•
Potential shifts in supply sources for natural gas
2003 Analyst/Investor Conference
3
Sample Load Duration Curve and Supply
Stack of “Assets” to meet it
150,000
140,000
130,000
120,000
110,000
100,000
Daily Demand, Dth
90,000
80,000
70,000
LNG
60,000
Pipe 1 FT
60 day storage
50,000
Pipe 1
40,000
120 day
30,000
Pipe 2 FT
20,000
Pipe 3
10,000
Pipe 2
0
1
11
21
31
41
51
61
71
81
91
Remaining Winter Days
2003 Analyst/Investor Conference
4
101
111
121
131
141
151
Contracts Totaling 50% of the MDQ and 63% of
Reservation Charges Expire in the Next Two Years
Reservation Charges
Remainder
14%
Evergreen
3%
2005
47%
2012
1%
MDQ
Remainder
15%
2005
36%
Evergreen
7%
2013
6%
2006
14%
2013
6%
2007
6%
2003 Analyst/Investor Conference
2008
1%
2009
1%
2012
2010 2%
12%
5
2006
17%
2007
6%
2010
5%
2008
0%
2009
1%
Virginia Natural Gas Service Territory
2003 Analyst/Investor Conference
6
Pivotal Propane Peak Shaving Facility
Scope and Project Objectives
• Scope:
– Adds 28,800 Dthd
– Expandable to 66,000 Dthd
– 3 million gallon Cold Storage tank
• Project Objectives:
–
–
–
–
Meets 3-year peaking forecast
Expandable for 10-year demand
10 days of peaking
South to North flexibility
2003 Analyst/Investor Conference
7
Pivotal Propane Peak Shaving
Facility Timeline
May-Sep ’03
Oct ‘03
Nov ‘03
Q104
Q204
Q304
Preliminary Engineering
Board
Approval
Regulatory
Approval
Complete 1/23
Permitting
• VEPD
• Local
• County
• Air
• Soil
2003 Analyst/Investor Conference
Permitting
Complete 2/26
Construction
• Site Work
• Tank Construction
• Process Construction
• Pipeline
8
Q404
Georgia HP System
Southeast Interstate Pipelines 20030321
ID
East Tennessee Natural Gas Co
Southern Natural Gas Co
/
Cleveland #2
Southern Natural Gas Co (SGNG)
Transcontinental Gas Pipeline Corp
Cleveland #1
/
/ / East Station
Chattanooga LNG
/ / / Bill Reed
// Hunter Rd
/ London Lane
Davidson Road
/ /
Ringgold
/ / Catoosa County
Gas Main - Size
Signal Mountain Red Bank Snow Hill
Nominal Diameter
0.500 - 1.500
1.501 - 3.000
3.001 - 5.000
5.001 - 7.000
Chatsworth
/
Present State of
Georgia Pipelines
7.001 - 9.000
9.001 - 11.000
11.001 - 13.000
Calhoun #2
/
13.001 - 16.000
16.001 - 19.000
Calhoun #1
/
/ Farm Tap
19.001 - 37.000
Shannon
/
/Rome #3
/
/ Rome #1
/ Rome #2
/
/ /Athens
/
/
Rockmart
/
/
/
/Cedartown
/
East Tennessee Natural Gas
East Athens
Suwanee
/
Danielsville
Bogart
Marietta
Dallas
Southern Natural Gas
Sewell Rd
Conyers
East Point
Lithonia
Fulton Ind'ial
Newnan
Stockbridge
Temple
Douglasville
Bowden Breman Villa Rica
Riverdale LNG
So. Atlanta #1
Carrollton
Riverdale-TGPL So. Atlanta #2
Peachtree City Hampton
/
/
/// / /
/
/
/
/
/
/
/
/
/
Franklin
/
/
//
/
/
/
/
Griffin
/
/
Jackson
Barnesville Zebulon
/
//
Forsyth
/
Thomaston
/
/
/
Blythe
South Georgia Natural Gas
Augusta #4
Warrenton
Sandersville
Transcontinental Natural Gas
Macon-Mville#2
Macon-Mville#1North MaconMacon LNG
Plant Ackwright
East Macon
West Macon
/ //
/
Augusta #2
Augusta #1
Augusta #3
/
/
/
Jeffersonville
/
/
Danville
/
/
Springfield
/
Dexter
Savannah #4
/
Laurens County
Savannah #2
Savannah #3
//
Savannah #1
/
¯
Montezuma
Compressor Station
/
/
LNG Plant or Terminal
Valdosta #3
Valdosta #2
/
Valdosta #1
Jacksonville
2003 Analyst/Investor Conference
Elba Island LNG Terminal
9
Macon Peaking Pipeline/
Bare Steel Replacement
Macon Bare Steel
Peaking Replm't
SW Georgia/Macon Peaking Pipeline
PAULDING
GWINNETT
COBB
Atlanta
OCONEE
LNG Plant
"
WALTON
DEKALB
OGLETHORPE
Est. Cost (millions)
Length - Miles
Capacity - MDthd
@ 600 PSIG
@ 1200 PSIG
Macon Peaking Line (AGL)
SW Georgia Line (AGL)
DOUGLAS
Southern Natural Gas
ROCKDALE
FULTON
Transcontinental Pipeline
Co
GREENE
MORGAN
CARROLL
Riverdale LNG
NEWTON
"CLAYTON
$14
$19
$48
$60
76
178
76
178
HENRY
FAYETTE
COWETA
PUTNAM
JASPER
BUTTS
HEARD
SPALDING
HANCOCK
•
PIKE
BALDWIN
LAMAR
MERIWETHER
TROUP
JONES
MONROE
Macon LNG
"
UPSON
WILKINSON
•
Macon
BIBB
HARRIS
CRAWFORD
TALBOT
TWIGGS
TAYLOR
T:\Gis\ Apps\Projects\Thematic Mapping\Projects Files\Renewals\SW Georgia Macon Peaking Pipeline-20030724.mxd
AGL Resources, Mapping Services, July 2003
2003 Analyst/Investor Conference
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•
Repatriates 70 MDth/d stranded
capacity from the Macon LNG
facility to metro Atlanta
Provides additional peaking to
marketplace
Delivers Elba or GOM gas to
Atlanta
In the future, supply basin flows to our
region will change
2003 Analyst/Investor Conference
11
Existing and Proposed LNG
Import Facilities
Everett, MA (Operating)
Operator:
Distrigas LNG
Cove Point, MD ( Operating)
Cove Point LNG
Operator:
(Tractebel)
Vaporization Capacity
435 MMcf per day
(expanding to 600 MMcf per
day in mid-2001
1 Bcf per day
(750 allocated for imports)
5.0 Bcf
(expanding to 7.5 Bcf)
Trucking Capacity
100 MMcf per day
Storage Capacity
3.6 Bcf
Number of Tanks
2
4
(expanding to 5)
Tanker Berths
1
Draft
11 metres
Pipeline Connections
Algonquin, Tennessee
(Dominion)
Vaporization Capacity
Storage Capacity
Number of Tanks
Tanker Berths
2
Draft
11 metres
Pipeline Connections
Columbia Gas, Transcontinental
Bear Head
(ANE)
Fairwinds
(TCPL, ConocoPhillips)
Canaport
(Irving)
West Coast
(Calpine)
East Coast
(Golar, Somerset,
Weaver’s Cove)
West Coast
(Mitsubishi, Crystal,
BHP Billiton)
Baja, Mexico
(ConocoPhillips, Sempra,
ChevronTexaco, Shell,
BP, Marathon)
Cameron
(Sempra)
Bahamas
(El Paso, AES, Tractebel)
Freeport
(Cheniere)
Lake Charles, LA ( Operating)
Operator:
Elba Island, GA ( Operating)
Trunkline LNG
(CMS)
Vaporization Capacity
Peak capability 1.0 Bcf per
day. Sustained capability
630 MMcf per day
Storage Capacity
6.3 Bcf
Number of Tanks
3
Tanker Berths
1
Draft
12 metres
Pipeline Connections
Trunkline, Gulf Coast Pipes
2003 Analyst/Investor Conference
Offshore GOM
(Shell, El Paso, ChevronTexaco)
Existing Terminals
Proposed Terminals
12
Operator:
El Paso
Vaporization Capacity
440 MMcf per day
(maximum sendout is 675
MMcf per day
Storage Capacity
4 Bcf
Number of Tanks
3
Tanker Berths
1
Draft
12 metres
Pipeline Connections
Southern Natural Gas
Global LNG
Trade Routes
2003 Analyst/Investor Conference
13
LNG is Destined for Eastern Seaboard
• Trinidad LNG is bound for US, both eastern seaboard
and Gulf Coast
• Qatar and Nigerian LNG may seek US markets as well
• Elba Island Terminal
–
–
–
–
Current capacity 440 MDthd
Shell expansion 360 MDthd
800 MDthd available daily
Total takeaway of 520 MDthd is mis-matched; AGL can be
part of solution
• AGL is poised for East Coast market opportunities
2003 Analyst/Investor Conference
14
Georgia HP System
Southeast Interstate Pipelines 20030321
ID
East Tennessee Natural Gas Co
Southern Natural Gas Co
/
Cleveland #2
Southern Natural Gas Co (SGNG)
Transcontinental Gas Pipeline Corp
Cleveland #1
/
Gas Main - Size
Signal Mountain Red Bank Snow Hill
/ / East Station
Chattanooga LNG
/ / / Bill Reed
// Hunter Rd
/ London Lane
Davidson Road
/ /
Ringgold
/ / Catoosa County
Nominal Diameter
0.500 - 1.500
1.501 - 3.000
/
Georgia
Marketplace
3.001 - 5.000
5.001 - 7.000
Chatsworth
7.001 - 9.000
9.001 - 11.000
11.001 - 13.000
Calhoun #2
/
13.001 - 16.000
16.001 - 19.000
Calhoun #1
/
/ Farm Tap
19.001 - 37.000
Shannon
/
/Rome #3
/ Rome #1
/ Rome #2
/
/
/
/
Rockmart
/
/
/
/Cedartown
/
Danielsville
East Athens
Suwanee
/ Athens
//
Bogart
Marietta
Dallas
Sewell Rd
Conyers
East Point
Lithonia
Fulton Ind'ial
Newnan
Stockbridge
Temple
Douglasville
Bowden Breman Villa Rica
Riverdale LNG
So. Atlanta #1
Carrollton
Riverdale-TGPL So. Atlanta #2
Peachtree City Hampton
/
/
/// / /
Atlanta
/
/
/
/
//
/
/
/
/
Franklin
/
/
/
/
/
/
/
Griffin
/
/
Jackson
Barnesville Zebulon
/
//
Forsyth
/
/
/
/
/
Augusta #4
Warrenton
Sandersville
Macon-Mville#2
Macon-Mville#1North MaconMacon LNG
Plant Ackwright
East Macon
West Macon
/ //
Thomaston
Augusta #2
Augusta #1
Augusta #3
Blythe
/
/
/
Jeffersonville
/
/
Danville
/
Dexter
/
/
Springfield
Savannah #4
/
Laurens County
Savannah #2
Savannah #3
//
Savannah #1
/
Montezuma
¯
/
/
Valdosta #3
Valdosta #2
/
Valdosta #1
Jacksonville
2003 Analyst/Investor Conference
15
Elba Island LNG
Import Terminal
AGL Marketplace: A Region of
Opportunities
Cove Point LNG
Joint Use Pipeline
OPPORTUNITY
Virginia Market Place
Appalachian Production
a
East Tennessee Pipeline
VNG Propane Peaking
Georgia Market Place
SONAT Pipeline
Macon LNG
Elba Island LNG
Transco Pipeline
Jacksonville
2003 Analyst/Investor Conference
16
Potential Opportunities For Investment
Propane Air Plant
Macon Peaking Pipeline
Pipeline Replacement
Project*
Pipeline Project
LNG Opportunity
2004
2005
*Required under pipeline replacement program.
2003 Analyst/Investor Conference
17
2006
2007
2008
2009