noi on arizona natural gas infrastructure strawman proposal and workshop l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
NOI on Arizona Natural Gas Infrastructure Strawman Proposal and Workshop PowerPoint Presentation
Download Presentation
NOI on Arizona Natural Gas Infrastructure Strawman Proposal and Workshop

Loading in 2 Seconds...

play fullscreen
1 / 10

NOI on Arizona Natural Gas Infrastructure Strawman Proposal and Workshop - PowerPoint PPT Presentation


  • 155 Views
  • Uploaded on

NOI on Arizona Natural Gas Infrastructure Strawman Proposal and Workshop. Comments of Sempra Energy Global Enterprises September 25, 2003. Sempra Energy Global Enterprises. The Global Enterprises business units represent the nonutility lines of business of Sempra Energy

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 'NOI on Arizona Natural Gas Infrastructure Strawman Proposal and Workshop' - tan


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
noi on arizona natural gas infrastructure strawman proposal and workshop

NOI on Arizona Natural Gas Infrastructure Strawman Proposal and Workshop

Comments of Sempra Energy Global Enterprises

September 25, 2003

sempra energy global enterprises
Sempra Energy Global Enterprises
  • The Global Enterprises business units represent the nonutility lines of business of Sempra Energy
  • Four major lines of business:
    • Sempra Energy Resources: Power plant development and operations
    • Sempra Energy International: International energy operations and domestic LNG terminal development and operations
    • Sempra Energy Solutions: Retail services
    • Sempra Energy Trading: Wholesale energy and metals trading
common thread of strawman
Common Thread of Strawman
  • Utilities must diversify their natural gas supply portfolios
  • Gas storage is needed to provide reliability, flexibility and price stability
  • Electric generation continues to consume greater levels of natural gas
  • Reliance on interstate pipelines limits gas supply diversity and reliability
  • A long term infrastructure plan needs to be developed
policies guidelines
Policies & Guidelines
  • ACC should develop formal policies with flexible guidelines
  • Policies should not be overly restrictive
  • Policy development should be a dynamic process
  • Policies should compliment FERC jurisdiction and activities
  • ACC should be active in FERC proceedings related to supply and storage
storage
Storage
  • Storage meets critical utility objectives of supply and price increase strategies
  • Storage allows utilities to improve reliability
  • Storage would reduce price volatility
  • ACC should create flexible policies initially to encourage storage development
assume lng in the supply mix
Assume LNG in the Supply Mix
  • Sempra Energy has received approval to construct an LNG terminal in Ensenada, Mexico and is expected to be operational in 2007 providing >1 Bcf/d to the Southwest
  • There are at least three additional projects currently under development on the North American west coast
    • Shell: Ensenada – Permit Process
    • Marathon: Tijuana – Permit Process
    • Mitsubishi: Long Beach – Permit Process
lng considerations
LNG Considerations
  • The ACC should assume LNG to be a growing and viable supply source in the near term
  • Arizona utilities should be required to have a percentage of LNG as part of their procurement strategy
  • LNG will improve gas-on-gas competition and can stabilize supply reliability
cost recovery
Cost Recovery
  • Recommend all prudent up-front infrastructure development costs be pre-approved as recoverable
  • Storage costs should be addressed similar to pipeline capacity costs
  • Performance based incentives could be considered
other considerations
Other Considerations
  • SEGE feels that the CATS approach to project choice and development is not the most effective means to both assess energy infrastructure and choose capital projects
  • SEGE would like to assist the ACC in developing an integrated energy policy strategy formulated by Arizona energy stakeholders as a whole
action plan
Action Plan
  • Develop a natural gas infrastructure action plan by year end 2003
  • Hold technical workshop to narrow policy and guideline framework focusing on diversity of gas supply and infrastructure
  • Define a timeline for implementation of the action plan