slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Transwestern Pipeline Company Status of San Juan Expansion & Sun Devil Lateral February 2004 crosscountryenergy PowerPoint Presentation
Download Presentation
Transwestern Pipeline Company Status of San Juan Expansion & Sun Devil Lateral February 2004 crosscountryenergy

Loading in 2 Seconds...

play fullscreen
1 / 13

Transwestern Pipeline Company Status of San Juan Expansion & Sun Devil Lateral February 2004 crosscountryenergy - PowerPoint PPT Presentation


  • 320 Views
  • Uploaded on

Transwestern Pipeline Company Status of San Juan Expansion & Sun Devil Lateral February 2004 www.crosscountryenergy.com. Nevada. Colorado. Utah. ROCKIES. Supply Basins. Rate Areas. California. Ignacio. SAN JUAN. Blanco Hub. San Juan. Area. ANADARKO. Needles. Phoenix. Topock.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Transwestern Pipeline Company Status of San Juan Expansion & Sun Devil Lateral February 2004 crosscountryenergy' - Audrey


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Transwestern Pipeline CompanyStatus of San Juan Expansion&Sun Devil LateralFebruary 2004www.crosscountryenergy.com

slide2

Nevada

Colorado

Utah

ROCKIES

Supply Basins

Rate Areas

California

Ignacio

SAN JUAN

Blanco Hub

San Juan

Area

ANADARKO

Needles

  • Phoenix

Topock

Thoreau

Oklahoma

East of

Station

Panhandle North

West of Thoreau

Thoreau

9

Area

Area

Arizona

New Mexico

PERMIAN

Texas

West Texas North

Available Capacity to Serve AZ

  • Mainline West Capacity of 1,210 MMcf/d. 700 MMcf/day of Mainline West capacity and 350 MMcf/day of San Juan capacity available, subject to ROFR in 2005-2006
  • Current Expansions: TW preparing FERC certificate application to expand San Juan capacity by 375 MMcf/day with a mid-2005 in-service date.
  • Proposed Expansion: TW is planning a 170 mile lateral from its mainline near Flagstaff to the Phoenix market, capable of flowing 500+ MMcf/day without compression and up to 1.2 Bcf/d with compression.
slide3

Transwestern Supply Basin Analysis

120

Permian Reserves

San Juan Reserves

Rocky Mountain Reserves

Mid-Continent Reserves

100

80

Trillion Cubic Feet

60

40

20

0

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

Source: Lippman Consulting

Gas Supply Access

  • Since 1998, total reserves in the four major supply basins served by TW have risen dramatically.
slide4

25

25x

San Juan Basin Reserves

San Juan Basin Year-End Reserves

Reserve Life Index

20

20x

15

15x

Year End Reserves TCF

Reserve Life Index

10

10x

5

5x

0

0x

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

Source: Lippman Consulting

San Juan Basin - Reliable Resource Base

  • San Juan basin is one of the largest natural gas basins in the United States.
  • San Juan total reserves and reserve life (15 years) continue to increase.
  • Most active producers include: Devon, BP, Burlington, ConocoPhillips, & XTO
slide5

$6.50

Monthly Gas Index Prices Since the Kern River Expansion

San Juan

Permian

Rockies

Malin

Henry Hub

$6.00

$5.50

Dollar per MMbtu

$5.00

$4.50

$4.00

$3.50

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

San Juan Basin – Economically Attractive

  • San Juan gas has been the most economical source of major natural gas supplies for Southwest markets.
  • The San Juan gas price has remained more competitive vs. Permian & Rockies despite the Kern River expansion.
  • Approximately 61% of gas shipped by TW in 2003 was from the San Juan Basin.

“Rockies" = Inside FERC Northwest Pipeline Rocky Mountain First of the Month Index (FOM Index), "San Juan" = Inside FERC San Juan FOM Index, "Permian" = Inside FERC Permian FOM Index, "Henry Hub" = Settlement Price on Last Day of trading for that month's NYMEX futures contract, "Malin" = Natural Gas Intelligence Malin FOM Index.

slide6

5,000

Total Regional Export Capacity

Actual Export

Export Capacity

4,500

4,000

3,500

3,000

MMcf per day

2,500

2,000

1,500

TRANSWESTERN SAN JUAN EXPORTS

1,000

500

0

Jul-01

Jul-02

Jul-03

Apr-01

Apr-02

Apr-03

Oct-01

Oct-02

Oct-03

Jun-01

Jan-02

Jun-02

Jan-03

Jun-03

Aug-01

Feb-02

Aug-02

Feb-03

Aug-03

Jan-01

Nov-01

Nov-02

Mar-01

Sep-01

Dec-01

Mar-02

Sep-02

Dec-02

Mar-03

Sep-03

Feb-01

May-02

May-03

May-01

San Juan Basin - High Utilization

  • All pipeline capacity for the San Juan Basin is fully contracted.
  • TW’s San Juan lateral is 100% utilized.

Source: Lippman Consulting

impact of rockies imports san juan production growth on export capacity

MMCF/D

4,500

Capacity = 3,960 MMcf/d

Capacity = 4,050 MMcf/d

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2000

2001

2002

2003

2004

2005

2006

2007

Impact of Rockies Imports + San Juan Production Growth on Export Capacity

Assumptions:

Rockies imports, plus Bondad expansion, plus 1% San Juan production increase

Source: Lippman Consulting

tw san juan expansion is the best way to relieve the constraint at blanco
TW San Juan Expansion is the Best Way to Relieve the Constraint at Blanco
  • Existing infrastructure allows lower scale expansion (375 MMcf/d).
  • Least cost expansion alternative.
  • Can easily be scaled up to handle more volumes in the future by adding HP.
  • Low execution risk:
    • Experienced project manager.
    • Certificate is ready for filing at FERC.
    • Tentative Navajo ROW arrangements.
  • Market flexibility – East and West markets.
proposed san juan expansion
Proposed San Juan Expansion

Bloomfield CS

15,000 Hp Add

72 miles

Of 36” loop

Bisti CS

1,500 Hp Add

sun devil lateral

Existing TW system

Sun Devil Lateral

San Juan Expansion

El Paso Natural Gas

Sun Devil Lateral

San Juan

Ignacio

Blanco

Anadarko

Thoreau

California

TW Sun Devil Lateral

- 500+ MMcf/d

- 170 miles of 36” line, no compression

- Deliveries to industrials, power generators, LDC’s and El Paso south system

Phoenix

Permian

slide11

Comparative Total Delivered Gas Cost 1)

1) Gas Costs based on 1/28/2004 quotes from trader/major customer.

tw sun devil lateral is the best way to achieve gas on gas competition for phoenix
TW Sun Devil Lateral is the Best Wayto Achieve Gas-on-Gas Competition for Phoenix
  • Lowest Capital cost requirements
    • $250mm vs $750mm for Kinder-Morgan
    • 170 miles vs 455 miles
    • Lower project cost = lower execution risk = lower cost to AZ ratepayers
  • Leveraging existing infrastructure allows smaller scale expansion to get started (500 MMcf/d).
  • No compression initially required.
  • Able to utilize existing unsubscribed mainline capacity.
  • TW’s Sun Devil Lateral provides to Phoenix:
    • Experienced, safe, reliable pipeline alternative
    • Competitive pricing
    • Access to multiple gas supply sources
    • Promotes gas-on-gas competition
acc action items
ACC Action Items
  • Support the efforts of your customer base to access lower cost gas supplies
    • Arizona electric utilities
    • Arizona gas utilities
    • Large industrial users
  • Merchant power generation model is dead
    • TECO / Gila Bend
  • Promote development of utility infrastructure corridors using existing highway, railroad, and power line ROW
    • Minimizes environmental damage
    • Minimizes private landowner involvement
  • Promote and support ROW Quick-take legislation
    • Iowa
      • Utility establishes eminent domain condemnation rights via court petition, posts bond
      • Judge appoints 3-person independent commission to hear case
      • Right-of-way costs established and landowner compensated within 30 days
    • Provides surety of construction timeline and avoids litigation delays