ETNG Update Meeting - Enbridge

Thursday, November 12, 2020Virtual Meeting

ETNG Update Meeting

Welcome

Vice President, Southern US Marketing

November 12, 2020

Bobby Huffman

Virtual – ETNG Update Meeting2

Agenda

WelcomeBobby HuffmanVice President, Southern US Marketing

Safety MomentGeorge SnyderManager, US Marketing, Southern Region

Integrity Management ProgramPeter SeydewitzStrategic Advisor, Pipeline Integrity

Capacity ImpactsRyan JamesDirector, Commercial Operations

Operational Capacity UpdateJim CymesManager, Scheduling & Volume Management

Regulatory UpdateLisa ConnollyDirector, Regulatory

Business Development UpdateGeorge SnyderManager, US Marketing, Southern Region

ClosingAnne MooreDirector, Business Development & Marketing, US Southern Region

ETNG Update Meeting

3

Safety Moment

November 12, 2020

Key Behaviors

Virtual – ETNG Update Meeting

4

Integrity Management Program

Strategic Advisor, Pipeline Integrity

November 12, 2020

Peter Seydewitz


5

Asset Integrity Journey

• Mindset and approach shift required toachieve zero ruptures withconfidence

• Moving to quantitative assessment approach (more data/ inspection results) to drive certainty

• Improve confidence and lower thesystem’s risk with each iteration of inspection

• Comprehensive transformation effort with initiatives to support Strategic Plan (safety targets, staffing for critical thinking, employee engagement, etc.)

6

Revised and consolidated programsand procedures

Defined new workstreams and processes to support new safety approach

Technology

Developed hard spot tool & acceptance criteria Chaired Industry geohazard Best Practices Developing new multi diameter MFL-C and EMAT tools

Significant progress on planning and communicating work schedules

Safety Analytics

Defined safety targets Quantitative assessment on 7 threats system-wide3x more confidence than 2018, more stable/ predictable

Integrity Operations

Centralized organization Doubled staff

Process

7

675 ILIs & and 2,127 Digs in 2 years6200 miles of Pressure Restrictions removed

Communication People

Transformation Highlights (2019 – 2020)

Integrity Transformation in the Numbers - GTM

8* Total Pressure Restricted Miles is inclusive of all threats and corrective action orders and accounts for segments with multiple threats.

Rev ised10/12/2020

2016 2017 2018 2019 Q3 2020Estimated

EOY2020

In-Line Inspection Tool Runs 65 92 86 371 - 304

Anomaly Digs 494 558 655 980 - 1,147

ACAO Geohazard Restricted Miles

(Lines 10 & 25)0 0 0 0 1,550 0

A.O. Smith Pressure Restricted Miles 0 0 0 2,034 863 235

SCC Pressure Restricted Miles

(Includes WC)0 0 0 321 480 453

Pressure Restricted Miles Total* 0 0 0 2,685 3,323 689

Staffing 57 51 51 100 - 113

Gas Transmission driving towards industry-leading performance

2017 2018 2019 2020 2021 2022 2023 2024 2025

Increasing Confidence and Reliability

Industry Practice

&

Compliance-based

Intense Transition

&

Diagnostics

Improved Predictability

&

Risk-based Planning

Projected Spend Projected IncidentRate

Maturity &HRO

9

ETNG Fitness for Service Review

10

• Systemwide threat review - 160 miles of pressure restrictions

(Stress Corrosion Cracking, Selective Seam Weld Corrosion,

and Seam Cracks)

• All restrictions lifted by January 2020 on ETNG mainlines

• Higher confidence of system reliability through increased

diagnostics and analytics

• 12 ILI and 89 digs complete 2020 YTD, no significant

findings on SCC and Seam Weld threats

• EMAT inspection for SCC

• MFL-C inspections for SSWC

• External Corrosion

• Internal Corrosion

• Stress Corrosion Cracking

• Selective Seam Weld Corrosion

• Dents

• Seam Cracks (ERW)

• Geohazards

Threats Reviewed

ETNG Integrity Plans

11

• ETNG integrity program builds from

GTM systemwide data and learnings

• Continuous Improvement: Iterative

process of integrity planning,

monitoring, and mitigation - planned

and methodical

• PHMSA Gas Transmission Mega Rule

will result in additional integrity work

(hydrotesting, pipe modifications, ILI

runs) over the next 10-15 years

• 21 ILI planned in 2021

• SCC and SSWC Inspections continue, complete 3100 Line

In Line Inspection

• 89 excavations YTD in 2020

Anomaly Investigation

• MAOP confirmation

• In advance of Mega Rule

Hydrotests

• IMU Surveys and strain analysis

• Expanded threat monitoring

Geohazard Monitoring

• Surveys and assessments

• CP optimization

Cathodic Protection

• 2020: 3200-2 line and Early Grove P17 and P17L lines

• 2021: Bristol – Glade Springs 3310-1

Make Piggable

Next Steps

12

• Completed highest risk sections in 2019 and 2020

• Data from 2019 and 2020 work being used to sharpen program focus/confidence

• High volume of inspection tools planned for 2021

• Lower likelihood segments – more predictability

• 2021 work plans and schedules to be developed by end of 2020

• 3x more confident in integrity and reliability of system than in 2018

Capacity Impacts

Director, Commercial Operations

November 12, 2020

Ryan James


13

ETNG/SGSC2021: Known Hydrotest and Low-Pressure Digs

14These are only the known outages at this period of time. More outages will be posted on the Planned Services Outages part of the EBB when more information is known

3600

3100-13100-23300-13300-1

3200

Clark

RangeMontereyRidgetop

Dixon

SpringsGainesboro Flatwoods

Boyds’

CreekFordtown

Rural

RetreatTopsideGlade

Spring

Cascade

Creek

To 8” RoanokeWartburg

3500

3200-13200-23300-1

OoltewahTracy

CityLobelvilleLewisburg

Estill

Springs

Maryville

Madisonville

Calhoun

Nora

Jewell

Ridge

Hydrotest in FallHydrotest in

Spring

Hydrotest in

August

Low Pressure Digs in

Valve Sections 3-5

April Timeframe


Valve Section 1,5 and 8

April Timeframe


Valve Section 4

April Timeframe

Low Pressure Digs on

Line 3305A-200 –

Stone Mtn Lateral

April/May Timeframe

Saltville Wellhead work

April Timeframe


Valve Section 5

TBD

ETNG/SGSC 2021: Tool Runs and Make Piggable Facilities

15

3600

3100-13100-23300-13300-1

3200

Clark

RangeMontereyRidgetop

Dixon

SpringsGainesboro Flatwoods

Boyds’

CreekFordtown

Rural

RetreatTopsideGlade

Spring

Cascade

Creek

To 8” RoanokeWartburg

3500

3200-13200-23300-1

OoltewahTracy

CityLobelvilleLewisburg

Estill

Springs

Maryville

Madisonville

Calhoun

Nora

Jewell

Ridge

April Tool Run

Legend

MFL-A

IMU

EMAT

MFL-C

HS

April Tool Run

Late April or May

Tool Run

Late April or May

Tool Run

March Tool Run

Spring Tool Run

May

Tool Run

Permanent Pigging

Facilities @ SaltvilleSpring Tool Runs

These are only the known outages at this period of time. More outages will be posted on the Planned Services Outages part of the EBB when more information is known

Safe, efficient & effective work execution on the ground

16

Holbrook Regulation

Safe, efficient & effective work execution on the ground

17

J-System Regulation

Communicating with regulators, agencies, vendors, and contractors on our needs

18

Our corporate projects team is taking on some of the work to ensure we can meet expectations

19

Berne and Holbrook at Milepost 715


20

John Sevier Lateral John Sevier Lateral


21

Percy Priest Lake – Anomaly Dig Housatonic River – Anomaly Dig

Operational Capacity Update

Manager, Scheduling & Volume Management

November 12, 2020

Jim Cymes


Scheduled Supply Diversity

Operator

Nov 2017 - Mar 2018 Nov 2018 - Mar 2019 Nov 2019 - Mar 2020

Total Qty Percentage Total Qty Percentage Total Qty Percentage

Jewell Ridge 26,990 23.6% 25,234 23.0% 24,844 22.8%

Nora 18,198 15.8% 17,735 16.1% 17,602 16.2%

Rogersville 1,094 1.0% 884 0.8% 961 0.9%

Transco 45 0.0% 536 0.5% 199 0.2%

East of Topside Total 46,327 40% 44,390 40% 43,607 40%

Columbia Gulf 36 0.0% 6,551 6.0% 8,791 8.1%

Midwestern 10 0.0% 1,660 1.5% 2,732 2.5%

Morgan County 1,344 1.2% 1,139 1.1% 918 0.8%

Other 155 0.1% 151 0.1% 152 0.1%

Sonat 2,060 1.8% 2,325 2.1% 1,290 1.2%

Tennessee 44,170 38.6% 38,690 35.3% 35,590 32.7%

TETLP 20,429 17.8% 14,645 13.4% 15,793 14.5%

West of Topside Total 68,204 60% 65,161 60% 65,266 60%

23

Winter (MDth)

Scheduled Supply Diversity

Operator

May 2018 - Sep 2018 May 2019 - Sep 2019 May 2020 - Sep 2020

Total Qty Percentage Total Qty Percentage Total Qty Percentage

Jewell Ridge 26,624 29.7% 24,483 28.5% 25,875 34.6%

Nora 17,840 19.9% 17,202 20.0% 17,556 23.5%

Rogersville 1,165 1.3% 986 1.1% 374 0.5%

Transco 139 0.2% 621 0.7% 1,179 1.6%

East of Topside Total 45,768 51% 43,292 50% 44,983 60%

Columbia Gulf 1,850 2.1% 10,482 12.2% 6,292 8.4%

Midwestern 2,166 2.4% 2,536 3.0% 1,022 1.4%

Morgan County 1,198 1.3% 1,017 1.2% 990 1.3%

Other 156 0.2% 153 0.2% 153 0.2%

Sonat 1,460 1.6% 299 0.3% 197 0.3%

Tennessee 25,735 28.7% 19,995 23.3% 16,146 21.6%

TETLP 11,441 12.7% 8,124 9.5% 5,034 6.7%

West of Topside Total 44,006 49% 42,606 50% 29,835 40%

24

Summer (MDth)

Top 25 Days of Scheduled Quantities

25

Winter 2018, 2019, 2020

Top 25 Days of Scheduled Quantities

26

Summer 2018, 2019, 2020

Load Duration Curves

27

November - March

Load Duration Curves

28

Through September

EHDD Knoxville

29

November - March

CDD Knoxville

30

May - September

Power vs Non-Power Deliveries

31

November - March

Power vs Non-Power Deliveries

32

May - September

Restrictions

33

May - September

Location

2020 2019

Seal Only Restrictions Seal Only Restrictions

Boyds Creek (West to East) 2 26 0 11

Boyds Creek (East to West) 16 1 0 0

Bristol (East to West) 6 4 0 5

Calhoun (South to North) 0 0 1 2

Clarkrange 7 3 0 0

Dixon Springs 0 7 5 17

Estill Springs 0 0 3 7

Flatwoods (West to East) 1 19 4 42

Flatwoods (East to West) 9 0 0 0

Restrictions

34

May - September (Continued)

Location

2020 2019


Maryville (South to North) 3 22 1 16

Monterey 4 4 0 0

Lobelville Receipts 18 15 0 0

Ridgetop Receipts 5 1 0 0

Topside South 7 10 0 1

Topside East 10 36 7 75

Tracy City 0 11 0 18

Wartburg 8 2 0 0

Restrictions

35

Winter

Location

W19-20 W18-19


Boyds Creek (East to West) 0 0 0 13

Boyds Creek (West to East) 0 0 4 8

Calhoun (South to North) 0 0 2 1

Dixon Springs 1 17 14 19

Flatwoods (West to East) 5 2 16 47

Fordtown (East to West) 0 1 1 1

Lewisburg 4 5 10 5

Lobelville 40 15 17 14

Flatwoods (East to West) 1 5 0 0

Restrictions

36

Winter (Continued)

Location

W19-20 W18-19


Madisonville (South to North) 0 0 3 9

Maryville (South to North) 5 4 0 12

Monterey 0 0 7 13

Patriot Deliveries 0 0 1 1

Patriot Receipts 2 0 4 7

Topside South 11 17 0 0

Topside East 23 79 25 35

Tracy City 9 31 14 35

Ridgetop Receipts 9 2 0 0

Wartburg 5 16 3 2

Regulatory Update

Director, Regulatory

November 12, 2020

Lisa Connolly

Virtual – Fall Update Meeting37

Settlement Agreement Approved May 2, 2019

• Rate reduction, effective October 1, 2018; rate increase, effective July 1, 2019

• Fuel tracker effective July 1, 2019

– July 1, 2020 true up filing reduced the fuel rate to 0.30%, effective November 1, 2020

• Rate case filing moratorium thru December 31, 2021

• Rate case filing requirement with rates effective no later than July 1, 2024

38

Saltville Gas Storage

Rate Case Settlement Agreement

Comeback Requirement This Year

• Rate Case filed on June 30, 2020 under docket RP20-980 to comply with a comeback requirement from prior settlement agreement– FERC issued an Order on July 31, 2020 accepting and suspending tariff records for rate increases for 5 months; rate

decreases became effective August 1, 2020

– FERC Staff commenced discovery with data requests on August 26, 2020

• Next Steps– Joint offer from FERC/Intervenors due November 12th

– Second Settlement Conference scheduled for November 19th

• East Tennessee is optimistic a settlement can be reached39

East Tennessee Pending Rate Case

Status Update

Rate Case Timeline:

Rate Case Filed6/30/2020

2020

First Settlement Conference 8/19/2020

Discovery Begins8/26/2020

Second Settlement Conference

11/19/2020

Settlement Discussions

Discovery Phase

FERC Commissioner Changes - 2020

40

Commissioner

Neil Chatterjee

Chairman

James DanlyCommissioner

Richard Glick

• James Danly named Chairman on November 5, 2020; term ends June 30, 2023

• Replaced Neil Chatterjee as Chairman; Chatterjee’s term ends June 30, 2021

– Chatterjee has stated publicly he will remain at the Commission through the end of his term

• Mark Christie, Republican and Allison Clements, Democrat, nominated by President Trump in July 2020

– Senate has indicated that confirmations are unlikely prior to December

Business Development Update

Manager, Business Development & Marketing U.S. Southern Region

November 12, 2020

George Snyder


In Service Under Construction Regulatory Permitting

• Lambertville solar self-power • Atlantic Bridge Phase III

• Heidlersburg solar self-power

• Vito Offshore

• FERC Certificates received:

Cameron Extension Project

Appalachia to Market

Middlesex Lateral

Gulfstream Phase VI

Project Development UpdatesMilestones Achieved 2H19 - Present

Continued progress on incremental capacity to serve U.S. Gas Transmission customers

42

U.S. Gulf Coast Projects

• Texas Eastern and Valley Crossing well-positioned along the U.S. Gulf Coast

• Connected to 3 LNG facilities and 4 projects at various stages of construction and development

Well-positioned to support growing natural gas supply to LNG export terminals

Cameron Extension

• New Texas Eastern lateral

• Calcasieu Pass LNGUS$0.2B

Venice Extension / Gator Meter

• Reversal of Texas Eastern Venice Lateral

• Plaquemines LNG, pending FIDUS$0.4B

Rio Bravo Pipeline

• Construct Rio Bravo pipeline

• Rio Grande LNG, pending FIDUS$1.2B

Valley Crossing Expansion

• Expansion of Valley Crossing

• Annova LNG, pending FIDUS$0.5B

In-development

Mexico

TX

LA

Valley Crossing

Texas Eastern

Freeport LNG

Sabine Pass LNG

Plaquemines LNGCameron LNG

Calcasieu Pass LNG

Venice Extension

Cameron Extension

Rio Grande LNG

Annova LNG

Rio Bravo Pipeline

VCP Expansion

ENB pipelines

LNG facilities ENB connected/contracted

In service/commissioning

Under construction

In development

Other LNG facilities

In service & in development

U.S. Gulf Coast

43

Northeast Expansions on Texas EasternExecution Projects linking supply to growing markets

•Middlesex Extension – 264 MMcf/d expansion

FERC Certificate received Oct 2020

Targeting In Service 3Q21

•Appalachia to Market – 18 MMcf/d expansion

FERC Certificate received Sep 2020

Targeting in service 2H21

•PennEast – 1,100 MMcf/d expansion

FERC Certificate received Jan 2017

FERC Amendment for 2 phase construction filed Jan 2019; Order expected 4Q20

Ph I targeting in-service Jan 2021; Ph II Nov 2023

PennEast

MARCELLUSNY

NJ

MD

PA

Appalachia to Market

Middlesex Lateral

Delivering Appalachia supply to growing LDC, power and industrial markets in the Northeast

44

Incremental deliveries to New England and Atlantic Canada

Atlantic Bridge

Project Scope:

• ~135 MMcf/d expansion of the Algonquin and Maritimes Pipelines

Customers:

• Various local distribution and industrial companies in New England and Atlantic Canada

Project Status:

•Received FERC certificate Jan 2017

• Placed 40 MMcf/d into service Nov 2017

• Placed full project volumes into service Oct 2019

• Place full project path into service 4Q20

BOSTON

NYC

HALIFAXST. JOHN

BANGOR

PORTLAND

FREDERICTON

Atlantic Bridge

New Regional Supplies

Connecting abundant gas supply to northern New England and Atlantic Canada markets

45

Northeast & New EnglandMarket development opportunities in next 5 years

Growth in End-Use Market

• Peak deliveries and growing hourly demands in Northeast and New England

• Solution needed to bring affordable gas to the region

• Growth from high-demand power and industrial markets in the Midwest

• Serve 45 power plants in PJM and ISO-NE, with several new connections on Texas Eastern and Algonquin

• Focus on reliability and resiliency supports pipeline transportationPhilly Market Expansions

New England Opportunities

BOSTON

NYC

PHILADELPHIA

DC

DETROITDawn Hub

Power Generation

Continued market growth from LDCs and power generation in the Northeast

46

47

Solar Self-Power Program

• Texas Eastern will use adjacent solar PV “behind the meter” installations to self-power a portion of our compressor load

• The Solar PV installation results in an offset to shipper power bills and reduces emissions

• Lambertville, NJ site in-service and providing clean power to the station

• 2.7 MWdc

• Heidlersburg, PA site kicked off construction in October

3.1 MWdc; in-service Spring of 2021

• Considering other electric compressors along Texas Eastern

Evaluating potential for battery storage

Key component of “Green Pipeline Program” dedicated to reducing emissions and incorporating renewable options into our existing footprint

First interstate pipeline Solar project in North America In-Service

Lambertville Station Layout

Solar field

Lambertville Station

48

East Tennessee Natural Gas

49East Tennessee Natural Gas Shipper Meeting |

MVP Southgate

Closing

Director, Business Development & Marketing U.S. Southern Region

November 12, 2020

Anne Moore


ETNG Update Meeting - Enbridge

Documents

Transcript of ETNG Update Meeting - Enbridge