dawn hub successfully meeting market growth€¦ · dawn compressor (2017) lobo d compressor (2017)...
TRANSCRIPT
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Paolo Mastronardi, Manager, Business Development
November 16, 2017
Dawn Hub – Successfully Meeting Market Growth
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Agenda
• Enbridge/Union Gas Overview
• The Value of Dawn – Defining
Liquidity
Supply & Demand at Dawn
Infrastructure Expansions
Storage Expansion
• Expansions Challenges
• Mitigation
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Dawn
Enbridge Assets
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Union Gas
• Major Canadian natural gas storage, transmission and distribution company based in Ontario
• Over 100 years of experience and safe service to customers
• Dawn Storage facility – largest underground storage facility in Canada
• Dawn Hub, the second most traded hub in North America
• Assets of $8.2 billion, ~1.5 million customers, ~2,300 employees
• One of Canada's Top 100 Employers 2011-2017
• An Enbridge company
1.5 Million Retail Customers
1.2Tcf
Pipeline Throughput
65,390 km / 40,630 mi Distribution Pipe
278 Bcf
Storage Capacity
4,850 km / 3,015mi Transmission Pipe
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LIQUID
HUB
The Value of Dawn – Defining Liquidity
Storage
Gas Supply
Take Away
Buyers & Sellers
Price Discovery
Trading Activity
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Sourcing Supply at the Dawn Hub
Winter 3.2 Bcf/d Summer 3.0 Bcf/d
Gas Supply
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Existing Supply
New Supply
DAWN HUB
Sourcing Supply at the Dawn Hub Diversity = Reliability
Abundant and diverse natural gas serving the growing needs of the market
Gas Supply
DAWN
LTFP
NEXUS
ROVER
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Average Daily Dawn System Demand
Take Away
Winter 4.2 Bcf/d Summer 2.4 Bcf/d
Total Peak Demand – ~ 8.7 Bcf/d
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Brantford-Kirkwall Pipeline (2015)
Parkway West & Parkway D
Compressors (2015)
Lobo C Compressor (2016)
Hamilton-Milton Pipeline (2016)
Dawn Compressor (2017)
Lobo D Compressor (2017)
Bright C Compressor (2017)
Bluewater
St. Clair
Ojibway
Lobo
Bright
Kirkwall
Parkway
Maple
Dawn
Dawn – Downstream Connectivity Expansion Projects
Take Away
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2015-2017 Dawn Parkway System Growth 1.2 Bcf ~85% contracted by Ontario/Québec LDCs with a 15 year term
Dawn – Downstream Connectivity Utilities Supporting Expansion
2015-2017 Expansion Capacity
Take Away
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11 DAWN HUB
New markets and growing Dawn demand
The energy
advantage for
Eastern Canada
and U.S.
Northeast
Downstream Connectivity Growing connectivity to meet market demand
Take Away
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• 278 Bcf – Total Storage
• 120 Bcf total merchant storage
• 5.5 Bcf Peak Day Deliverability
– 3.1 Bcf/d Union Gas
– 2.4 Bcf/d Enbridge Gas Distribution
• Storage Enhancement Projects:
– 2016/17 - 3.2 Bcf incremental storage space
– 2017/18 - ~0.2 Bcf/d of incremental deliverability
– Post 2019 – incremental space
Dawn Storage Growing to Meet Demand
Storage
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• External Issues:
– Stakeholder requirements differ at federal, provincial and municipal levels
– Permitting process changes
• Internal Issues:
– Growth outpacing available resources
– Definition of roles and responsibilities
• Union’s multi-million expansion project faced some hurdles
Infrastructure Challenges
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• Stakeholder outreach plan
• Development of a centralized permitting group
• Escalation process when delays occur
• Development of tools to track status
Infrastructure Challenges - Mitigation
www.uniongas.com
Questions?