what’s up with infrastructure? interstate pipeline regulatory committee jeff wright, chief energy...

What’s Up With Infrastructure?

Interstate Pipeline Regulatory Committee

Jeff Wright, ChiefEnergy Infrastructure Policy Group

Office of Energy ProjectsFederal Energy Regulatory Commission

Phoenix, ArizonaOctober 9, 2003

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FERC

Office of Energy Projects

FERCHelping Markets Work

AdequateInfrastructure

StandardMarket Rules

CompetitiveMarket

MarketMonitoring &Oversight

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FERC


FERC/OEP Tools

• Create a Forum for Discussion– Outreach Conferences

• Advise– Study Existing Facilities– Meet with Stakeholder Groups

• Our Process– Act on Certificate Filings

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FERC


Why An InfrastructureGroup?

• The Chairman wanted a group dedicated to infrastructure issues and wanted it located in OEP.

• The convergence of gas and electric necessitates examinations of infrastructure dedicated to both as well as hydro, coal and oil issues.

• Need to research and present findings, both publicly and in-house.

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Mission Statement

The Energy Infrastructure Policy Group would apprise the Commission of the status of the national energy infrastructure providing timely and accurate guidance on how national energy infrastructure needs can be met

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Objectives

The Energy Infrastructure Policy Group would provide infrastructure guidance on measures before the Commission, prepare periodic regional reports on the status of national energy infrastructure, and, upon request, conduct special infrastructure studies.

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Organization

• EIPG is part of OEP’s front office staff.

• Answers directly to the Director and Deputy Director.

• Operates collegially.• Group leader serves as focal point

for assignments

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Staff

• Five multidisciplinary people with strong oral and computer-based presentation skills.

• Uses Commission-wide resource as required by the task.

• Regularly work with representatives of OMTR, OMOI, and OGC.

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Specific Duties

• Regional Assessments • Regional Infrastructure Conferences• Reports to the Commission

– Closed and Open Meetings

• Convene Meetings with CRE and NEB• North American Energy Working

Group• Other Duties As Assigned….

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FERC Infrastructure Conferences

• Five Conferences Held– Seattle– New York City– Orlando– Chicago– Denver

• Purpose– Bring together experts to discuss

infrastructure issues in region

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InfrastructureConferences

• Discussion Issues Include:

– Adequacy of Electric, Gas, Hydro and Other Infrastructure

– Essential Energy Infrastructure

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TopicsAddressed

• Adequacy of Existing Infrastructure

• Necessary Additions of Infrastructure

• Barriers to Expansion• Environmental and Landowner

Concerns

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Why Conferences?

• To Explore How FERC Can Facilitate

• How To Enhance A Comprehensive And Collaborative Approach

• Development Of Reliable Energy Infrastructure

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Advising on Gas Infrastructure Needs

•Analyze What’s There•Supply New Generation &

Markets•Security •Siting

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Major Pipeline Projects Certificated (MMcf/d)

January 2002 to Oct 2003

7.9 BCF/D Total2,295 Miles

Transco(323) Southern (330)

Kern River

(886)

CIG(282,92)

North Baja (500)

Tuscarora(96)

Northwest(162)

Kern River (282)

Iroquois(70)

TETCO(250)

Northwest(224)

NFS/DTI(150)

Georgia Straits (96)

1. Algonquin (285) 2. Islander East (285) 3. Iroquois (85) 4. Columbia (135,270)

SCG Pipeline (190)

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3

4

Northwest(191)

East Tennessee (510)

Tennessee (320)

TETCO (197)

Greenbrier (600)

El Paso (320)

WBI(80)

ANR(220)

El Paso (140)

TETCO(223)

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FERC


Major Pipeline ProjectsPending (MMcf/d)

October 2003

3.6 BCF/D Total526 Miles

Calypso(832)

Maritimes (400)

Ocean Express(842)

Cove Point(445)Cheyenne Plains

(560)

CIG(118)

Northwest(113)

Discovery(150)

ANR(107)

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Major Pipeline Projectsin Pre-filing (MMcf/d)

October 2003

1.1 BCF/D Total Pipeline Capacity

1.1 BCF/D Deliverability Capacity

1,120 Miles

Picacho Pipeline (1,000)*Pacific Texas

Grasslands Expansion (120)(WBI)

Weaver’s Cove Energy LNG(400)

Sound Energy Solutions LNG (700) (Mitsubishi)

*Picacho’s pre-filing has been suspendedpending submission of required documents

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Transco (250)Alabama-Georgia (Duke) (240)

Seafarer Pipeline (El Paso) (700)Gulf Pines (Gulf South) (1,000)

Major Pipeline Projects On The Horizon (MMcf/d)

October 2003

16.9 BCF/D Total6,306 Miles

Blue Atlantic (El Paso) (1,000)

Freedom Trail (Tennessee)(150)

Northwinds Pipeline(NFG) (570)

WIC (150,300,470)Samoa Point (Calpine) (1,000)

Sun Devil Project(Transwestern) (450)Advantage Southern (KM Interstate) (800)

Silver Canyon Project (KM Interstate) (750)San Juan Lateral Exp. (Transwestern) (600)

KM West Texas (KM Interstate) (300)Wheatland Expansion (KM Interstate) (80)

Western Frontier (So. Star)(540)Kern River Expansion (500)

TransColorado (750,125)Desert Crossing (500)

Coronado (500)

Alaska Gas (4,500)Lebanon Lateral (ANR) (250)

Bison Pipeline (Northern Border) (325)Cheyenne Plains (170)

Trailblazer (100)Enbridge (1,000)

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Desert Crossing(10.0)

Storage Projects(Capacity in Bcf)

October 2003

Certificated Since 2001

On The HorizonCurrently Pending Copiah

(3.3)

SGResources(6.0)

Seneca(0.8)

Stagecoach(13.6)

Dominion(5.6)

Egan Hub(13.5)

Gulf South(18.5)

Natural(10.7)

Wyckoff(6.0)

KM(6.5)

Caledonia(10.0)

Falcon Gas(20.0)

Midwest(4.5)

NUI (11.6)

Questar(5.0)

Sabine(40.0)

Tennessee(5.0)

Copper Eagle(3.2)

EnCana(8.0)

Bluewater(27.0)

Existing Terminals with ExpansionsA. Everett, MA : 1.035 Bcfd (Tractebel)B. Cove Point, MD : 1.0 Bcfd (Dominion)C. Elba Island, GA : 1.2 Bcfd (El Paso)D. Lake Charles, LA : 1.2 Bcfd (Southern Union)

Approved Terminals1. Hackberry, LA : 1.5 Bcfd, (Sempra Energy)

Proposed Terminals – FERC2. Bahamas : 0.84 Bcfd, (AES Ocean Express)3. Bahamas : 0.83 Bcfd, (Calypso Tractebel)4. Freeport, TX : 1.5 Bcfd, (Cheniere / Freeport LNG Dev.)5. Fall River, MA : 0.4 Bcfd, (Weaver's Cove Energy)6. Long Beach, CA : 0.7 Bcfd, (Sound Energy Solutions/Mitsubishi)

Proposed Terminals – Coast Guard8. Port Pelican: 1 Bcfd, (Chevron Texaco)9. Gulf of Mexico: 0.5 Bcfd, (El Paso Global)

Planned Terminals10. Brownsville, TX : n/a, (Cheniere LNG Partners)11. Corpus Christi, TX : 2.6 Bcfd, (Cheniere LNG Partners)12. Sabine, LA : 2.6 Bcfd (Cheniere LNG)13. Humboldt Bay, CA : 0.5 Bcfd, (Calpine)14. Undecided: 1.0+. Bcfd, (ExxonMobil)15. Somerset, MA : 0.65 Bcfd (Somerset LNG)16. Louisiana Offshore : 1.0 Bcfd (McMoRan Exp.)17. Belmar, NJ Offshore : n/a, n/a (El Paso Global)18. So. California Offshore : 0.5 Bcfd, (Chevron Texaco)19. Bahamas : 0.5 Bcfd, (El Paso Sea Fare)20. Altamira, Tamulipas : 1.12 Bcfd, (Shell)21. Baja California : 1.3 Bcfd, (Sempra) 22. Baja California : 1.4 Bcfd, (Chevron Texaco)23. Baja California : 0.85 Bcfd, (Marathon)24. Baja California : 1.3 Bcfd, (Shell)25. St. John, NB : 0.75 Bcfd, (Irving Oil & Chevron Canada)26. California Offshore: 1.5 Bcfd, (BHP Billiton)27. Point Tupper, NS 0.75 Bcf/d (Access Northeast Energy)28. Harpswell, ME 0.5 Bcf/d (Fairwinds LNG – CP & TCPL)

Existing and Proposed LNG Terminals

October 2003

A

C

1 2 3

8 9

25

517

19

4

10

20

11

21

186

222324

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B

12D

15

16

26

27

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FERC


FERC


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0

10

20

30

40

In-Serviceand

Approved

Pending -FERC

Pending -Coast Guard

Planned

In-Service and Approved Pending - FERC

Pending - Coast Guard Planned

Maximum LNGDeliverability Growth (Bcf/d)

What Have WeBeen Doing Lately?

A quick look at Western US Gas Infrastructure

The West is dependent on production from gas originating mainly in the Rockies, Southwest and Canada.

United States

West

% of Unite

d States

Total Gas Consumption 20.5 Tcf 4.1 Tcf 20%

Total Dry Gas Production 19.7 Tcf 4.3 Tcf 22%

Total Proved Gas Reserves 183.5 Tcf 57.0 Tcf 31%

Total Storage Capacity 8.4 Tcf 1.3 Tcf 15%

Total Net Imports from Canada 3.6 Tcf 1.2 Tcf 33%

Total Net Exports to Mexico 0.13 Tcf 0.03 Tcf 23%

Western Gas Facts - 2001

Source: EIA’s Natural Gas Annual 2001 and US Crude Oil, Natural Gas, and Natural Gas Liquid Reserves 2001 Annual Report


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Source: EIA’s Natural Gas Annual 2001 with supporting data, and EIA’s Historical Consumption by State

Over the past 10 years, the electric generation has been the fastest growing sector in the West and is now the largest gas consuming sector.

0

1

2

3

4

5

1991 2001

Tcf

Residential Commercial Industrial Electric Generation


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MONTANAWASHINGTON

OREGON WYOMING

NEW MEXICO

NEVADA

UTAH

COLORADO

IDAHO

ALBERTA

ARIZONA

BRITISH COLUMBIA

BAJA CALIFORNIA NORTE

CALIFORNIA

CHIHUAHUA

KANSAS

MANITOBA

NEBRASKA

OKLAHOMA

SASKATCHEWAN

SONORA

TEXAS

Source: RDI’s Powermap and NewGen (May 2003 data)

Planned gas-fired electric plants in the west for the period 2003-2005 will be located along the major interstate natural gas pipelines, and along the intrastate natural gas pipelines in California.

Under Construction

Natural Gas

Wind

Other

Advanced Development

Under Construction

Natural Gas

Wind

Other


Natural Gas

Wind

Other


Year

Proposed Generation in MW (Under Construction & Advanced development)

Related Gas Demand with Heat Rate of 5,687 BTU/KWH (MMcf/d)

Related Gas Demand with Heat Rate of 7,000 BTU/KWH (MMcf/d)

2003 (Post May 03)

8,661 688 846

2004 5,028 399 491

2005 3,019 240 295

Total 16,708 1,327 1,632


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The West is dependent on pipeline capacity originating in Canada and the Southwest. As the Rocky Mountain basins develop, increased pipeline capacity will be required to transport this gas towards markets in the West and Midwest.

1.8 Bcf/d

1.1 Bcf/d

0.2 Bcf/d0.5 Bcf/d

3.8 Bcf/d

1.8 Bcf/d

0.4 Bcf/d

Source: RDI’s Powermap and EEA’s April 2002 data base (Average Pipeline Capacity for 2002)

Major Western Interstate Gas Pipelines

Colorado Interstate Gas Co.

El Paso Natural Gas Co.

Kern River Gas Transmission Mojave Pipeline Co.

Northern Border Pipeline Co.Northwest Pipeline Corp.

Paiute Pipeline Co.PG&E Gas Transmission, Northwest Questar Gas Co.Southern Star Central GasSouthern Trails PipelineTrailblazer Pipeline Co.TransColorado Gas TransmissionTranswestern Pipeline Co.

Tuscarora Gas Transmission

Williston Basin InterstateWyoming Interstate Co., Ltd.


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FERC


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26% Of Total US Gas Reserves Are Located in the Rocky Mountain

Region.

Sources: Wyoming Energy Commission’s Website; Mr. Chris Schenk of USGS; USGS’ Assessment of Oil and Gas Resources in Priority Basins in the US; and Power Map

PowderRiverBasin

BigHornBasin

Wind RiverBasin

Green River Basin

DenverBasin

OverthrustBelt

UTCO

MT

WY

Rocky MountainsTotal Resources 209 TcfConventional 29 TcfNon-Conventional 180 Tcf(Coal Bed Methane 45 Tcf)

Wyoming Southwestern Wyoming & Powder River Basin 101 TcfPowder River Basin – Coal Bed Methane 14.3 Tcf

FERC


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Proved Gas Reserves

• Wyoming and Colorado comprised 10% and 7%, respectively, of EIA’s estimated total proved US gas reserves of 183.5 Tcf as of 12/31/01.

• Wyoming had the largest increase in proved reserves, by state or federal region, from 2000 to 2001 at 2.2 Tcf. (Total US reserves increased by 6 Tcf.)

FERC


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Rocky Mountain Pipelines

Source: RDI Power Map and Capacity Volumes from Energy and Environmental Analysis Inc’s (EEA) April 2002 Base Case.

Eleven interstate pipelines are locatedwithin the four statesthat encompass the Rocky Mountain region.

These 11 pipelines havetotal average pipeline capacity of 5,204 MMcf/d comingout of the Rockies as ofMay 2003.

FERC


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OpalHub

CheyenneHub

0.2 Bcf

2.2 Bcf

3.1 Bcf

Source: RDI PowerMap and various flow diagrams on file at the FERC.

Note: Williams Gas Pipelines Central Inc. is now Southern Star Central Gas Pipeline.

Interstate Pipeline Capacity Out of Wyoming

FERC

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FERC


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Productive Capacity vs.Pipeline Capacity

• EIA shows that the Rockies could produce up to 6 Bcf per day through 2003.

• Wyoming Energy Commission shows that the Rockies could produce up to almost 8.0 Bcf per day by 2005 and 11.0 Bcf per day by 2010.

• Both of these totals are greater than the current pipeline capacity of the region.

FERC


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Contact

JEFF WRIGHT

[email protected]

202-502-8617

what’s up with infrastructure? interstate pipeline regulatory committee jeff wright, chief energy...

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