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  • 1

    Tennessee Gas Pipeline

    2015 Customer Meeting Business Session

    Thursday August 13,2015

    http://www.kindermorgan.com/

  • 2

    Agenda

    Thursday, August 13th, 2015

    8:30 a.m. Welcome Sital Mody

    8:45 a.m. Pipeline Operations Update Ray Miller

    9:05 a.m. Macro Overview and TGP flow changes Ernesto Ochoa

    9:25 a.m. Break

    9:45 a.m. Business Development Projects Paul Smith

    10:05 a.m. Northeast Energy Direct Update Curtis Cole

    10:25 a.m. Pipeline Expansion in New England Suedeen Kelly

    11:20 a.m. Closing Remarks and Q&A TGP Team

    11:45 a.m. Lunch Salt

    11:50 to 5:30 p.m. Afternoon Activities (As Selected)

    6:30 p.m. Social Solarium

    7:45 p.m. Dinner Wentworth Ballroom

  • 3

    This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly

    to historical or current facts. In particular, statements, express or implied, concerning future actions, conditions or events, future operating results or

    the ability to generate revenues, income or cash flow or to pay dividends are forward-looking statements. Forward-looking statements are not

    guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations of

    Kinder Morgan, Inc. may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these

    results are beyond Kinder Morgan's ability to control or predict. These statements are necessarily based upon various assumptions involving

    judgments with respect to the future, including, among others, the ability to achieve synergies and revenue growth; national, international, regional

    and local economic, competitive and regulatory conditions and developments; technological developments; capital and credit markets conditions;

    inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather conditions; environmental

    conditions; business and regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural products;

    the timing and success of business development efforts; terrorism; and other uncertainties. There is no assurance that any of the actions, events or

    results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial

    condition. Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking statement. Please read "Risk Factors"

    and "Information Regarding Forward-Looking Statements" in our most recent Annual Report on Form 10-K and our subsequently filed Exchange Act

    reports, which are available through the SECs EDGAR system at www.sec.gov and on our website at www.kindermorgan.com.

    We use non-generally accepted accounting principles (non-GAAP) financial measures in this presentation. Our reconciliation of non-

    GAAP financial measures to comparable GAAP measures can be found in the Appendix to our Analyst Day presentation, dated

    1/28/2015, on our website at www.kindermorgan.com. These non-GAAP measures should not be considered an alternative to GAAP

    financial measures.

    Forward-Looking Statements / Non-GAAP Financial Measures

    http://www.sec.gov/http://www.sec.gov/http://www.sec.gov/http://www.sec.gov/http://www.sec.gov/http://www.kindermorgan.com/http://www.kindermorgan.com/http://www.kindermorgan.com/http://www.kindermorgan.com/http://www.kindermorgan.com/http://www.kindermorgan.com/http://www.kindermorgan.com/http://www.kindermorgan.com/http://www.kindermorgan.com/http://www.kindermorgan.com/

  • 4

    Pipeline Operations Update

    Ray Miller

    http://www.kindermorgan.com/

  • 5

    Marcellus/Utica

    SCOOP/Stack

    5

  • 6

    Agenda

    Past Winter

    This Summer

    Storage

    Pipeline Integrity

    Operational Expectations

    Pictures

    Scheduling NOPR

  • 7

    Winter Summary

    Record peak send out at 10.5 MMDTH on Feb 19th Record snow fall in Boston area. Cold temps in New England.

    Increased OFOs Zones 5 & 6, 40 days (35 days in 13/14) Zones, 4 days (9 days in 13/14) 17 Meter Specific OFOs for Power Plants (0 in 13/14)

    Increased Southbound flow Westbound into station 219 at .9+ bcf/d Southbound through station 200 at 1.2+ bcf/d Increased Utica receipts Southbound flow on 100 and 500 lines

    No significant mechanical issues in the Northeast Market Area! Increased volumes at Distrigas and Dracut

  • 8

    Winter Summary - System Deliveries

    2012-2013 2013-2014 2014-2015 % Change

    LDC 1,830 2,046 2,087 +2%

    Power 1,130 1,096 1,258 +15%

    Interconnects 3,924 4,841 5,014 +4%

    Other 572 61 58 -4%

    TOTAL 7,455 8,044 8,417 +5%

    volumes are MDth/d

  • 9

    -

    200

    400

    600

    800

    1,000

    1,200

    1,400

    1,600

    2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

    Zone 6

    Zone 5

    Zone 4

    Zone 2

    Zone 1

    Zone 0

    Winter Total System Power Deliveries

    volumes are MDth/d

    +36%

    +17%

    -19% -3%

    +15%

  • 10

    Cold New England Weather

    200

    400

    600

    800

    1000

    1200

    1400

    Nov Dec Jan Feb Mar

    HD

    Ds

    Winter 2014/15

    Winter 2013/14

    Winter 2012/13

    30 Year Average

  • 11

    Winter New England Deliveries

    2012-2013 2013-2014 2014-2015 % Change

    LDC 1,324 1,467 1,511 +3%

    Power 346 274 315 +15%

    Interconnects 468 1,316 1362 +3%

    TOTAL 2,137 3,057 3,187 +4%

    volumes are MDth/d

  • 12

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    1,600

    1,800

    2,000

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

    2012 2013 2014 2015 YTD

    All volumes are MDth/d

    Winter New England LDC Deliveries

  • 13

    Winter North Supply Analysis

    Winter Period (Nov-Mar) Average MDth/d

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    3,500

    4,000

    4,500

    5,000

    09-10 10-11 11-12 12-13 13-14 14-15

    Dracut

    Distrigas

    Shelton

    Wright

    Niagara

    Marcellus

    Utica

    Rex

    +70%

    +15% +5%

    +38%

    +17%

    Total Marcellus supply was

    over 19 bcf/d this winter!

  • 14

    0

    100

    200

    300

    400

    500

    600

    700

    800

    900

    1,000

    11-12 12-13 13-14 14-15

    Canada

    Mexico

    Winter System Exports

    -1% -2%

    volumes are MDth/d

    +155%

  • 15

    Summer Summary

    Demand is up (vs previous summer) Overall system - 7% higher Power Generation - 15% higher

    Market Area Supply continues to increase Increase in both Utica and Marcellus Supply

    Increased Southbound Flows Station 200 (Ohio) 1.5 to 1.6 Bcf/d Station 860 (Tennessee) - 0.8 0.9 Bcf/d South Texas market remains strong

    Main drivers Heat and Storage fill High level of system maintenance, repair, rebuild activity

    GETTING READY FOR WINTER

  • 16

    Summer Total System Deliveries

    2013 2014 2015 TD % Change

    LDC 875 874 963 +10%

    Power 1,272 1,296 1,487 +15%

    Interconnects 3,589 4,445 4,619 +4%

    Other 401 56 52 -7%

    TOTAL 6,137 6,671 7,121 +7%

    volumes are MDth/d

  • 17

    Summer New England Deliveries

    2013 2014 2015 TD % Change

    LDC 570 573 639 +12%

    Power 510 491 466 -5%

    Interconnects 408 1,249 1,174 -6%

    TOTAL 1,488 2,313 2,279 -1.5%

    volumes are MDth/d

  • 18

    -

    200

    400

    600

    800

    1,000

    1,200

    1,400

    1,600

    1,800

    2009 2010 2011 2012 2013 2014 2015 TD

    Zone 6

    Zone 5

    Zone 4

    Zone 2

    Zone 1

    Zone 0

    Summer Total System Power Deliveries

    volumes are MDth/d

    +22%

    +9%

    +16%

    -22% +2%

    +15%

  • 19

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    3,500

    4,000

    4,500

    2010 2011 2012 2013 2014 2015 TD

    Dracut

    Distrigas

    Shelton

    Wright

    Niagara

    Marcellus

    Utica

    Rex

    Summer North Supply Analysis

    volumes are MDth/d

    +52%

    +13% +8%

    +36%

    +15%

    Total Marcellus supply near

    20 bcf/d this summer!

  • 20

    National EIA Storage Statistics Through 07-31-2015

    0

    500

    1000

    1500

    2000

    2500

    3000

    3500

    4000

    Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

    BC

    F

    5 Year Range

    2002-2003

    2013-2014

    2014-2015

    5 Year Average 2009-2014

    535 Bcf > 2014; 64 Bcf > 5 Yr. Avg. 32 Bcf Inj

    2.912 Tcf Current Inventory

  • 21

    Pipeline Integrity

    Pigging and internal line inspection (ILI) Planned for 1072 miles Approximately 775 are HCA miles

    Then anomaly remediation 100 Line (TX, MS, TN, KY) 200 Line ( OH, PA, NY, MA) 500 Line (MS, TN) 800 Line ( (MS, LA)

    And launcher/receiver modifications Required due to change in flow direction

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