WELCOME...
Transcript of WELCOME...
WELCOME TO NAPA
Agenda
• Energy Transfer Update/Overview
Gregg Russell – Vice President, Marketing
• Commercial Update
Beth Hickey – Director, Commercial Optimization
• Development Update
Coralie Sculley – Director, Market Development
• West End Supply Update
Pat Anderson – Director, Supply Development
• LNG Development Update
Joey Colton – Senior Optimization Rep
Important Disclosures
This communication is based on information which Panhandle Eastern Pipe
Line Company, LP, Sea Robin Pipeline Company, LLC, Trunkline Gas
Company, LLC and Trunkline LNG Company, LLC (collectively, “Company”)
believes is reliable. However, Company does not represent or warrant its
accuracy. The statements and opinions expressed in this communication
represent the views of Company as of the date of this report. These statements
and opinions may be subject to change without notice and Company will not be
responsible for any consequences associated with reliance on any statement
or opinion contained in this communication. Company disclaims any intention
or obligation to update any statements or opinions contained in this
communication. This communication is confidential and may not be reproduced
in whole or in part without prior written permission from Company.
Energy Transfer
Update/Overview
GREGG RUSSELL
Vice President, Marketing
ETE Organizational Structure
Energy Transfer Equity, L.P.
(NYSE: ETE)
Regency Energy Partners LP (NYSE: RGP)
Energy Transfer Partners, L.P. (NYSE: ETP)
NGL
Interstate Transportation
Midstream
70% 30%
Contract Treating
Joint Ventures
Gathering & Processing
Southern Union Co.
Intrastate Transportation & Storage
LDCs
Panhandle Companies
SUGS
Lone Star NGL
Ownership in RGP 100% RGP IDRs
1.8% General Partner Interest 26.3mm LP units (17% of total)
Ownership in ETP 100% ETP IDRs
1.5% General Partner Interest 50.2mm LP units (22% of total)
Ownership in SUG 100% SUG Shares
Citrus
FEP
50%
50%
Contract Compression
Combined Asset Footprint
Natural Gas Assets Energy Transfer Southern Union Combined
Miles of Pipeline 23,589 21,169 44,758
Throughput (Bcf/d) 22.1 8.6 30.7
Storage (Bcf) 74 109 184
Processing Capacity (Bcf/d) 1.4 0.5 1.9
Transwestern Pipeline
• 1.2 Bcf/d Capacity
• Bi-directional System
• Accesses Permian, San Juan and Anadarko Basins
Tiger Pipeline
• 2.4 Bcf/d Capacity
• Serves Haynesville Producers
• Interconnects with TETCO, TGT, TXG, ANR, CGT, SESH and Trunkline
Midcontinent Express Pipeline
• 1.2 / 1.8 Bcf/d Capacity
• Interconnects with NGPL, TGT, ANR, CGT, TETCO, SONAT, Destin and Transco
• 50/50 JV with KMP
• KMP operates
Fayetteville Express
• 2 Bcf/d Capacity
• Serves Fayetteville Producers
• Interconnects with NGPL, TXG, ANR and Trunkline
• 50/50 JV with KMP
Intrastate Assets
• ETE own/operates the largest intrastate pipeline system in the US
• 7,700+ miles of pipe moving upwards of 11 Bcf/d
• 74 Bcf Storage
• Serves Houston, Austin, Dallas/Ft. Worth & San Antonio
• Over 30 interconnects with interstate pipelines
NGL/Gathering & Processing
NGL Assets
• Pipeline
Transportation
• 12 inch NGL
pipeline
• 144,000 Bbls/d
of capacity
• 12 pump stations
with 21,500 hp
• Fractionation &
Processing
• Two cryogenic
processing plants
• 25,000 Bbl/d
fractionator
• Sea Robin gas
processing plant
Sea Robin Plant
Hattiesburg Storage
Mont Belvieu Storage
Refinery Services
The Future… The Sunoco acquisition significantly diversifies ETE’s
existing infrastructure assets
Commercial Update
BETH HICKEY
Director, Commercial Optimization
Winter Record Warmth
March 2012 Record Weather
Customer Storage Comparison
to 5 Year Average
45.34%
56.69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
3/11/2012 4/11/2012 5/11/2012 6/11/2012 7/11/2012 8/11/2012 9/11/2012 10/11/2012
2012%
5 Year Average%
2011%
End of April 2012 Customer Storage % by
Segment:
PEPL Field: 47.0%
PEPL Mkt: 59.2%
TGC: 20.8%
End of April 5 Year Average
Customer Storage % by Segment:
PEPL Field: 22.7%
PEPL Mkt: 40.5%
TGC: 27.5%
End of April 2011 Customer Storage
% by Segment
PEPL Field: 12.9%
PEPL Mkt: 44.6%
TGC: 37.6%
Avg Peak Day - Houstonia
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
December
January February March November
07 08 09 10 11
Winter Peak Days through Houstonia
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
1,600,000
December
January February March November
07 08 09 10 11
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Jan-11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-12 Feb Mar Apr May*
Bcf/
day (
av
g)
REX Deliveries by Segment
REX-West Upstream of Lebanon Lebanon Downstream of Lebanon
* Through 5/17.
Data derived from REX capacity postings.
Rockies Express Deliveries
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Jan-12 Feb-12 Mar-12 Apr-12 May-12
Dt/
day (
av
g)
REX (East) Deliveries - Upstream of Lebanon
Ameren Illinois ANR Citizens Midwestern PEPL Trunkline Vectren Indiana
Rockies Express Deliveries
* Through 5/17.
Data derived from REX capacity postings.
Winter Peak Days through
Independence
600,000
800,000
1,000,000
1,200,000
1,400,000
December
January February March November
07 08 09 10 11
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
07 08 09 10 11 07 08 09 10 11 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12
November December January February March
Winter Daily Avg of Zone 1A Receipts
Z1A Average Daily Receipt Quantities January 2012 – April 2012
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Jan-12 Feb-12 Mar-12 Apr-12
Richland Parish Regency Tiger Interconnect
Fayetteville @ Bobo Road Olla- Gulf South Acadian
McNutt TGC Receipt
Summer Maintenance
• PEPL Major work – Haven 400 line
beginning June 2012
• Trunkline Cypress outage – June
2012 (see critical posting)
PEPL Operational Constraints
Tuscola
Houstonia
Haven
Edgerton
Trunkline Operational Constraints
AAmmbbiiaa
TTuussccoollaa
JJoohhnnssoonnvviillllee
DDyyeerrssbbuurrgg
JJooppppaa
SShhaaww
EEppppss
PPoolllloocckk
NN JJuuddssoonn
LLoonnggvviillllee
Fayetteville Express
Bobo Road
Cap 900,000
ETC - Tiger
Cap 566,000
Centerpoint - Perryville
Cap 70,000
Centerpoint –
Richland Parish
Cap 1,000,000
Regency
Cap 1,000,000
Gulf South - Olla
Cap 700,000
Crosstex - Mcnutt
Cap 380,000
Acadian
Cap 500,000
Texas Gas
Greenville Lateral
Cap 500,000
IInnddeeppeennddeennccee
$6.08
$7.55
$3.08
$3.88 $3.96
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
To
tal C
on
su
mp
tio
n M
CF
Panhandle Powerplant Consumption
2008
Summer
2009
Summer
2010
Summer
2011
Summer
2007
Summer
Trunkline Powerplant Consumption
$6.84
$9.69
$3.53
$4.18 $4.15
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
To
tal C
on
su
mp
tio
n M
CF
2008
Summer
2009
Summer
2010
Summer
2011
Summer
2007
Summer
What could the summer bring…
PEPL Mid Season Fuel Filing
• Due to…
• Record winter weather
• Historically high storage inventory
• Lower fuel consumption
• PEPL fuel tracker is highly over recovered
• Possible midcycle fuel filing to lower
fuel rates
Tropical Activity Forecast
Named Storms Hurricanes Major
Hurricanes
MDA 11 5 2
CSU 10 4 2
WSI 11 6 2
Accuweather 12 5 2
TSR 13 6 3
TWC 11 6 2
1995-2011 AVG 15 8 4
NOAA AVG 0 6 0
• March 1, 2012 – fuel rate filing for fuel rates effective April 1, 2012
• March 14, 2012 – customer protest that PEPL’s tariff did not include RCC
• March 30, 2012 – Fuel rates approved and show cause order issued by FERC
• April 30, 2012 – filed explanation to show cause order and request for rehearing
• Currently waiting on Commissions response
Reservation Charge Crediting
(RCC) - PEPL
Development Update
CORALIE SCULLEY
Director, Market Development
Proposed Offshore Asset Consolidation Combined Asset Map
Proposed Offshore Asset Consolidation Summary and Expected Timeline
• Sea Robin to acquire Trunkline’s offshore assets, including
• Terrebonne System
• Vermilion System
• Partial ownership interest in the Brazos A-47 system
• Offshore Terrebonne & Vermilion Systems remain FERC regulated
• Maintains rate & service protection for shippers on these systems
• Shipper access to offshore supplies will be maintained at three onshore receipt points:
• Terrebonne System - just upstream of the Patterson Compressor Station at both the Neptune and Patterson II processing plants
• Vermilion System - just upstream of the Kaplan Compressor Station at the Cow Island Meter Station
• Joint FERC filing by Trunkline and Sea Robin occurred on Oct. 7, 2011
• Receipt of FERC approvals expected mid-2012
• Initiation of Sea Robin’s Terrebonne and Vermilion offshore service to commence upon receipt of FERC approval
Northeast Gas Supply Utica Shale – Overview
• The Utica Shale
formation lies 3,000 to
7,000 feet below the
Marcellus Shale
• Estimated recoverable
potential:
• 1.3 to 5.5 billion
barrels of oil
• 3.8 to 5.7 Tcf of
natural gas
• Major producers active
in the play include
Anadarko,
Chesapeake, Devon,
Enervest, Hess
Utica Shale Activity in Ohio
0
5
10
15
20
25
30
35
40
2009
2010
Ja
n-1
1
Feb
-11
Ma
r-1
1
Ap
r-1
1
Ma
y-1
1
Jun-1
1
Ju
l-1
1
Au
g-1
1
Se
p-1
1
Oct-
11
No
v-1
1
De
c-1
1
Ja
n-1
2
Feb
-12
Ma
r-1
2
Ap
r-1
2
Horizontal Well Permits Issued
Total 2011 = 96
Jan – Apr ‘12 = 112
Ohio Dept of Natural Resources
Horizontal Well Activity
Northeast Gas Supply Where is it Going?
• Most new pipeline projects out of the Northeast are designed to serve historically premium markets:
• Boston/New England
• New Jersey/NewYork
• Other project destinations:
• Eastern Canada via Niagara
• Mid-Atlantic
• Southeast
Northeast Gas Supply Where Else Can It Go?
Michigan Storage
Perryville, Henry Hub, LNG Exports, Gulf Coast Industrials
Lebanon Hub: •Columbia
•Dominion
•REX
•TETCO
•TX Gas
Gas
City
Marcellus and Utica
supply
West End Supply Update
PAT ANDERSON
Director, Supply Development
Shale Plays Near Panhandle
Mississippian
Lime
Core
Mississippian
Excello-
Mulky
Woodford
Caney
Woodford/Cana Fayetteville
Granite Wash
Barnett
Bend
Woodford
Mississippian Lime
• Encompasses ~17 million prospective acres across
Oklahoma and Kansas
• Relatively shallow depth of 4,000 - 6,000 ft
• Quickly becoming one of the hottest onshore oil plays
in the country
• Typical wells producing roughly 50% gas and 50% oil
• Lower well costs and better rates of return than
Bakken wells
Mississippian Lime Activity
NGP Straddle Plant
• Located adjacent to the Haven Compressor station
• Capable of processing 1.4 Bcf/d
• Projected in-service date – 4Q 2013
• Existing gas stream processing but capable of handling
richer gas streams
National Helium Upgrade
• DCP Midstream, LP is upgrading its National Helium Plant
(NH) in Liberal Kansas
• NH is the largest plant in the Midcontinent, capable of
processing more than 600 MMcf per day
• Connect NH to its Southern Hills NGL pipeline
• Southern Hills will have over 150,000 barrels per day of
capacity and be operational in mid-2013
New Interconnections – 2012-13
200 MM
4Q’12
150 MM
3Q’13
225 MM
3Q’12
200 MM
1Q’13
150 MM
1Q’13
200 MM
3Q’13
NGP Plant
3Q’13
LNG Development Update
JOEY COLTON
Senior Optimization Rep
U.S. LNG Exports
LNG Reference Material
Natural Gas/LNG Conversion
• Volume Reduction - 620:1
• LNG Temperature – Minus 2600 F
• 1 mtpa = 142,900 Mcf/d
Regasification Shipping Liquefaction Pipeline Production
Typical LNG Shipping/Tankers
• Length - 950’
• Width - 150’
• Draft (Underwater) - 37’
• Capacity - 160,000 cm3 (2.7 Bcf)
• Cost - ~$200 MM
U.S. LNG Exports
Trunkline LNG Terminal – Lake Charles, LA
Year Milestone
1978 Construction begins
1982 Construction complete
• 6.3 Bcf of storage in 3 LNG storage tanks
• 630,000 Mcf/d of sendout capacity
1984 Terminal put in standby mode
1989 Terminal re-activated
2001 BG Group signs firm capacity agreement
2002 Phase I Expansion agreement signed
2003 104 Cargoes Received
Phase II Expansion agreement signed
2006
Phase I & II Expansion placed in-service • Storage capacity increased to 9 Bcf (1 additional tank)
• Sendout capacity increased to 1.8 Bcf/d (2.1 Bcf/d peak)
• Addition of second unloading dock
Infrastructure Enhancement Project (IEP) agreement executed
2010 IEP placed in-service
• Ambient Air Vaporization of sendout
• Liquids extraction capacity of 1.1 Bcf/d
Trunkline LNG Lake Charles Total Cargoes Received = 688
0
9
38
0 0 0 0 0 2
12 13
5
12 7
2 3
12
17
27
55
62
47
104
59
36
50
86
3
11 14
1 1
0
20
40
60
80
100
120
198
1
198
2
198
3
198
4
198
5
198
6
198
7
198
8
198
9
199
0
199
1
199
2
199
3
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
Carg
oe
s R
ece
ive
d
U.S. LNG Exports
The Import Phenomenon Re-visited (2008)
U.S. LNG Exports
North American Import Terminals (2012)
U.S. LNG Exports
DOE Applications & Approvals
Applications Received by DOE to Export Domestically Produced LNG from the
Lower-48 States (as of May 7, 2012)
Total Quantity
(Bcf/d) FTA Applications Non-FTA Applications
Cheniere Sabine Pass 2.20 Approved Approved
Freeport LNG (Phase I) 1.40 Approved Under Review
Freeport LNG (Phase II) 1.40 Approved Under Review
Lake Charles Exports (Trunkline LNG) 2.00 Approved Under Review
Carib Energy 0.03 Approved Under Review
Dominion Cove Point 1.00 Approved Under Review
Jordan Cove 1.20 Approved Under Review
Sempra Cameron LNG 1.70 Approved Under Review
Gulf Coast LNG 2.80 Under Review Under Review
Cambridge Energy 0.27 Pending Approval N/A
Gulf LNG Liquefaction Company, LLC 1.50 Pending Approval N/A
LNG Development Comp. (Oregon LNG) 1.25 Pending Approval N/A
SB Power Solutions Inc. 0.07 Pending Approval N/A
Total Applications 16.82
U.S. LNG Exports
Current FERC Proposals
U.S. LNG Exports
Proximity to Trunkline Gas Pipeline
Beeville
Edna
Cypress
Kountze
Centerville Patterson
Terrebonne Sea Robin
Trunkline LNG
Freeport LNG
Sabine Pass LNG
Longville
Creole Trail Pipeline
KM Louisiana Pipeline
Cameron/LA STG Pipeline
Trunkline
Cameron LNG
Thank You WE HOPE YOU ENJOY THE REST OF
YOUR STAY