Ruby Project Update Ed Miller Manager, Business Development - California Energy Commission
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
El Paso Western Pipelines
Ruby Project Update
Ed Miller
Manager, Business Development
a meaningful company
doing meaningful work California Energy Commission
delivering meaningful results
1
March 4, 2010
Cautionary Statement Regarding
Forward-looking Statements
This presentation includes forward-looking statements and projections, made in reliance
on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The
company has made every reasonable effort to ensure that the information and
assumptions on which these statements and projections are based are current,
reasonable, and complete. However, a variety of factors could cause actual results to
differ materially from the projections, anticipated results or other expectations expressed
in this presentation, including, without limitation, our ability to successfully contract, build
and operate the pipeline projects described in this presentation; changes in supply of
natural gas; general economic and weather conditions in geographic regions or markets
served by El Paso Corporation and its affiliates, or where operations of the company and
its affiliates are located; the uncertainties associated with governmental regulation;
competition, and other factors described in the company’s (and its affiliates’) Securities
and Exchange Commission filings. While the company makes these statements and
projections in good faith, neither the company nor its management can guarantee that
anticipated future results will be achieved. Reference must be made to those filings for
additional important factors that may affect actual results. The company assumes no
obligation to publicly update or revise any forward-looking statements made herein or
any other forward-looking statements made by the company, whether as a result of new
information, future events, or otherwise.
2Ruby Update
3El Paso Pipeline System
Colorado Tennessee
Interstate Gas Gas Pipeline
Wyoming
Ruby Pipeline Interstate
Mojave Cheyenne
Pipeline Plains Pipeline Southern
Natural Gas
El Paso Elba Island
Natural Gas LNG
Mexico Florida Gas
Ventures Transmission (50%)
• 19% of total U.S. interstate pipeline mileage
• 26 Bcf/d capacity (15% of total U.S.)
• 19 Bcf/d throughput (30% of gas delivered to U.S. consumers)
Note: Includes El Paso Corporation and El Paso Pipeline Partners, L.P. 4Horn River
Gas Supply and Pipelines
Basin
Serving the Northwestern US
WCS
B
C A N A D A
B R I T I S H
C O L U M B I A
W A S H I N G T O N
M O N T A N A
Powder River
O R E G O N
Basin
I D A H O
W Y O M I N G
Green River
Basin
Uinta
Basin
U T A H Piceance
N E V A D A Basin K A N S A S
C O L O R A D O
C A L I F .
5Ruby Pipeline Map
Big Horn
O R E G O N Powder River
I D A H O Basin
Basin
GTN
W Y O M I N G
NWPL Wind River
Green River
PG&E Basin
Basin
CIG
Tuscarora
Ruby Opal Hub
Denver
WIC Juelsburg
C A L I F .
Paiute
Cheyenne Cheyenne
U T A H
Uinta Plains
N E V A D A Basin
Piceance
Basin
Kern River
• 680 miles of 42-inch Opal to Malin
C O L O R A D O
• 1,440 psig MAOP
• Measurement—8 locations Raton
Basin
• Four delivery points
• Receipts from the major Rocky
Mountain producing basins
6Ruby Stats
• 1.098 Bcf/d of firm transportation service agreements with customers
• Letters of support from California, Colorado, Nevada, Utah and
Wyoming Governors
• Initial capacity will be 1.25 to 1.5 Bcf/d
– Final sizing will be based on market support
• Estimated cost $2.96 Billion
• Rates:
– Filed recourse rate of $1.02
– $0.95 less than 200 MDth/d; 10-year contract term
– $0.87; 20-year contract term
– $0.85; 30-year contract term
• Begin service in March 2011
7Ruby: The First Carbon Neutral Pipeline
• Collaborative effort between Project Developer and Shippers
• Compressors to be powered by both gas and electricity
• Purchase renewable power (e-tags) to run e-motors
• Internal coating of the pipeline
• Apply Best (methane) Management Practices (BMPs)
• Leadership in Energy and Environmental Design (LEED)
• Reforestation along Ruby route and other locations
• Purchase Voluntary Emissions Reduction (VER) credits
• On-going GHG mitigation costs recovered as part of tariff fuel charge
8Ruby Pipeline Milestones
CPUC Approves PG&E Contract November 2008
Draft EIS June 2009
Partnership with GIP Announced July 2009
Preliminary Determination September 2009
Final EIS January 2010
FERC Certificate March 2010
BLM Record of Decision April 2010
Start Construction May 2010
In-Service March 1, 2011
FERC Certificate Docket No. CP09-54
Website: www.rubypipeline.com
9Ruby Pipeline – A Reality
Here’s why:
• Strong, firm contractual support from credit worthy shippers
• Final environmental impact statement obtained
• Remaining permits due shortly
• Solid financing
– 50% partner with Global Infrastructure Partners
– $1.5 Billion of commitments for Ruby project financing
10Summary of Construction Progress To Date
• Pipe and compression equipment purchased
• High quality Pipeline contractor teams under
contract
– US Pipeline, Precision Pipeline, Associated
and Rockford Corporation
• 87% of ROW acquired
• Aggressive public and NGO outreach
11Gas Available From North is Diminishing
Volume Change 2007-2017 (Bcf/d)
Alaska / Mackenzie Delta
????
Western Canada Price arbitrage LNG into
Production ~2.0 Canada
Demand ~1.5 Imports ~0.5
Eastern Canada
Heavy oil sands
Production ~ 0.0
Demand ~ 0.5
LNG out of
Retirement of
Canada Ontario coal fleet
???
Net Imports into U.S. ª 3.5 Bcf/d
12Rockies versus Western Canada
Long-Term Production Trends
Bcf/d
20
18
Canadian Forecast Rockies Forecast
16
14
12
10
8
6
4
163 Tcf Other
2 Forecast
-
1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090
Source: El Paso, NEB 13Rocky Mountain Production
(Volumes are Wellhead – Measured in MMcfd)
Forecast
2.1 Bcf/d of
growth 2008-2017
Forecast by 2017:
High Case 13,274
Mid Case 12,185
Low Case 11,096
1990-2007: Wellhead total data from IHS database
2008-2017: El Paso forecast
14Ruby Pipeline
• Concluding thoughts
¾ Ruby Pipeline will be in-service in early 2011
¾ History has taught us that it is very difficult to
predict the cost and availability of natural gas
¾ Predicating a future gas supply plan on a
developing resource is risky
¾ Ruby Pipeline provides the Western Markets
with the only firm, incremental access to Rocky
Mountain Production and supply diversification
15You can also read
