Post on 19-Mar-2016
description
Title Of Presentation
CONNECTING THE NORTH
Arctic Gas SymposiumNovember 2001
Houston, TX
2
TransCanada
• Third largest gas transmission system in the world - over 38,000 km
• Move about 75% of Western Canada’s natural gas production to market
• Over $20 billion in assets
• Manage or control over 1900 MW of power
3
TransCanada
Foothills
Northern BorderGreat Lakes
Trans Quebec &Maritimes
Iroquois
Portland
Tuscarora
BRITISHCOLUMBIA
ALBERTA
SASKATCHEWAN
MANITOBA
ONTARIOQUEBEC
NUNAVUTYUKON NORTHWEST
TERRITORIES
Chicago
WinnipegRegina
Calgary
Niagara
Montreal
Longlac
Empress
Edmonton
Vancouver
Yellowknife
Fort Nelson
Power Plants (Includes Plants Under Development
Bear Creek
Williams Lake
MacKay River
Sundance A
Redwater
Carseland
Cancarb Nipigon
Calstock
Kapuskasing
Tunis
North Bay
Curtis Palmer
Castleton
Ocean State
TransCanada’s Pipeline and Power Assets
4
Direct Access to Five Growth Markets in North AmericaPotential Alaska Supply
PotentialMackenzie Supply
Eastern Canada /Northeast U.S.A.
Midwestern U.S.A.
PacificNorthwest /California
Alberta / B.C.
5
North American Gas Demand Growth
2.4 Bcf/d2.3%/yr
1.5 Bcf/d3.1%/yr
3.3 Bcf/d3.1%/yr
1.9 Bcf/d3.2%/yr
Total North American Demand: 66 Bcf/d in 1998 87 Bcf/d
in 2010
2.8 Bcf/d2.1%/yr
6
Western Canadian Supply Response
# of
Gas
Wel
ls
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
4
6
8
10
12
14
16
1990 1995 2000
DevelopmentExploration
5330
1006
8500
6350
Del
iver
abili
ty
7
2000 2005 2010 2015 2020 2025
Bcf
/ d
0
5
10
15
20
25
NEB Case 1
NEB Case 2
Western Canadian Supply
Forecast
Alaskan and Canadian frontier reserves are needed to meet demand growth
8
Yukon
Alaska
Nunavut
Northwest Territories
B.C.
Alberta
Mackenzie DeltaReserves: 9 Tcf Proven 64 Tcf UltimateProduction: None
Alaska North Slope(Prudhoe Bay)Reserves: 31 Tcf Proven 99 Tcf UltimateProduction: 8 Bcf/d (associated) 7 Bcf/d (re-injected)
Northern Gas Resources
9
The Two-Pipe Solution
ArcticNationalWildlifeReserve
Yukon FlatsWildlife Reserve
IvvavikNational
ParkPrudhoe Bay
MackenzieDelta
Alaska
Yukon
NorthwestTerritories
Nunavut
Manitoba
Saskatchewan
Alberta
BritishColumbia
WASHINGTON IDAHO
MONTANA
Inuvik
NORTHDAKOTA
•Mackenzie Valley shortest, least cost for Delta gas
•Alaska Highway quickest, least cost for Alaska North Slope Gas
•Environmentally and technically superior
•Least cost, lowest risk solution
10
Alaska Highway Gas Pipeline Project
• 2820 km, 42” diameter
• Operating pressure: 2050 psi
• Initial volumes:2.5 Bcf/d
• Ultimate volumes:4.0 Bcf/d
• Initial cost:US$7.6 billion
• Ultimate cost:US$9.7 billion
• 2 Year construction• Estimated Toll:
~US $1/mcf
ArcticNationalWildlifeReserve
Yukon FlatsWildlife Reserve
IvvavikNational
ParkPrudhoe Bay
MackenzieDelta
Alaska
Yukon
NorthwestTerritories
Nunavut
Manitoba
Saskatchewan
Alberta
BritishColumbia
WASHINGTON IDAHO
MONTANA
Gordondale
NORTHDAKOTA
Anchorage
Whitehorse
Prebuild
11
Mackenzie Valley PipelineLowest Cost, Quickest to Market for Delta Gas
Route Description
• 1220 km, 30” diameter
• Operating Pressure 2050 psi
• Initial Volumes 0.8 Bcf/d
• Ultimate Volumes 1.2 Bcf/d
• Initial Cost US $2.0 billion
• 2 Year Construction
ArcticNationalWildlifeReserve
Yukon FlatsWildlife Reserve
IvvavikNational
Park MackenzieDelta
Alaska
Yukon
NorthwestTerritories
Nunavut
Manitoba
Saskatchewan
Alberta
BritishColumbia
WASHINGTON IDAHO
MONTANA
Inuvik
NORTHDAKOTA
12
The Mackenzie Valley ...a priority for TransCanada
• A stand-alone Mackenzie Valley Pipeline is a strategic priority for TransCanada
• It is the closest, least costly project to access incremental gas supply
• It is a good fit with TransCanada’s existing facilities
13
Route Considerations
• General route based on historical data• Route refinement will consider:
• aboriginal issues -- traditional knowledge• environmentally sensitive areas• existing utility corridors• presence of permafrost, ice content• stability of permafrost slopes• frost heave & thaw settlement potential• drainage and erosion
14
Construction Issues
• 2 - 3 year winter construction• plus 1 year prior for logistics (barging in
equipment in summer)• River crossings -- 4 major rivers greater than
275 m in width• Continuous permafrost and discontinuous
permafrost • manage with combination of route location,
thickness of pipe and temperature of gas
15
TransCanada is Uniquely Positioned
• Extensive system south of 60
• Alberta System can be economically ‘right-sized’ to accommodate Delta volumes
• Efficient use of existing facilities
• Lowest overall transportation cost to market
ArcticNationalWildlifeReserve
Yukon FlatsWildlife Reserve
IvvavikNational
Park MackenzieDelta
Alaska
Yukon
NorthwestTerritories
Nunavut
Manitoba
Saskatchewan
Alberta
BritishColumbia
WASHINGTON IDAHO
MONTANA
Inuvik
NORTHDAKOTA
16
What TransCanada Offers
• Extensive experience in large pipe construction and natural gas operation in extremely cold weather
• Successful project management expertise
• Lowest cost alternative
17
Conclusions
• Gas from both Northern basins will be required to meet growing demand
• Each basin will be developed when appropriate for that area
• Producers currently studying feasibility of pipelines out of each area
• TransCanada is uniquely positioned to play a key role in getting Northern natural gas to the growing North American marketplace
• We will work with all stakeholders to help develop the best options for safe, reliable delivery of natural gas
Thank you