Natural Gas Infrastructure Overview
MISO GEMW | Carmel, IN | June 10
Brett Barrus, Director, Market Development
ANGA Membership
0
1,235
1,619
1,981
Abundant Gas Supply
2,543
2,215
(trillion cubic feet)
2,102
Estimates of U.S. Recoverable Natural Gas
3,933
2,853
2,688
1,981
3,350
2,3352,266
2,203
2,170
3,545
3,105
2,836
2,543
2,074
3,600
3,350
3,600
3,000
Total Resource
(Uncategorized)
2,100
Potential Shale Gas
Resources
Non-shale Gas
Resources
Proved Reserves
2,836
4,000
2,102
2,100
2,000
1,619
1,532
1,414
1,312
1,268
1,235
‘00 ‘02 ‘04 ‘06 ‘08 ’10 ’12 ’14
’08 ‘09 ‘10 ‘11 ’12 ’13 ‘14
1,000
0
Potential Gas Committee
EIA
‘10 ‘10
CERA, MIT
‘11 ‘11
NPC, INGAA
‘09 ’12 ’13 ‘15
ICF
Gas Supply Chain

Pipelines





Compressor stations
Storage



Underground (salt caverns, depleted
aquifers, depleted gas/oil reservoirs)
Above ground (LNG tanks)
Gas processing facilities


Gathering (small/medium diameter
pipeline moving gas from producing fields)
Transmission (large diameter pipeline
including both inter & intra state lines that
deliver gas to customers including LDCs
Distribution (small/medium diameter
pipelines distributing gas to customers
beyond the city gate)
Remove natural gas liquids (NGLs) from
the raw stream
LNG facilities
Our Nation’s Robust Pipeline System
Projected Capacity Additions
Exports to Mexico
1.9
Exports to Canada
2.2
Within Gulf
0.4
Within Southeast
0.7
Within Western States
1.1
San Juan/Permian to…
5.3
Midcontinent, Rockies…
3.6
Mid-Atlantic to West
7.6
Mid-Atlantic to South
Total ≈ 38 Bcf/d
(2015-2035)
3.8
Mid-Atlantic to North
3.2
Within Marcellus
8.4
0
Source: DOE, Natural Gas Infrastructure Implications of Increased Demand from the Electricity Power Sector, February 2015
2
4
6
8
10
Billions in Projected Capacity Additions
497
500
450
400
$ Billion USD
350
369
313.1
300
DOE Deloitte Reference (2015-2030)
250
DOE Deloitte High Demand (2015-2030)
INGAA ICF Study (2014-2035)
200
API IHS [Base] (2014-2025)
150
87
100
38
50
84
101.6
API IHS [High] (2013-2025)
42
0
U.S. Total
Mainline Transmission/Interstate
Pipeline
“Total” figures includes in most cases investment in mainline transmission
pipelines, laterals, gathering lines (pipe only), pipeline and storage, storage fields,
and gas processing capacity
A Regional View of Current Investments
420 pipeline projects - $44 Billion up for bid and kickoff in next 12 months
Source: Industrial Info Resources – Pipeline labor demand data and project information
Current Pipeline Projects
Washington Expansion
(.77 Bcf)
Oregon LNG
(1.5 Bcf)
Prairie State
(1.5 Bcf)
Nexus
(1.5 Bcf)
OPEN
Project
(.56 Bcf)
Pacific
Connector
(1.03 Bcf)
Ohio Valley
Connector
(1.2 Bcf)
Downeast
(.63 Bcf)
Leidy Southeast
Expansion
(.53 Bcf)
Northeast
Energy Direct
(2.20 Bcf)
Pennstar
(.51 Bcf)
Constitution
(.67 Bcf)
Rover
(3.25 Bcf)
Magnum Gas Header
(1.2 Bcf)
Atlantic Sunrise
(.87 Bcf)
Dominion Supply Header
(1.5 Bcf)
North-South
Expansion
(.8 Bcf)
Diamond East
(1 Bcf)
Leach Xpress
(1.5 Bcf)
Cheniere Corpus Christi
(2.25 Bcf)
Project Stage:
Announced
Early Development
Advanced Development
AIM
(.34 Bcf)
Coastal Bend
(1.54 Bcf)
Atlantic Coast
(1.5 Bcf)
Dominion Keystone
(1 Bcf)
PennEast
(1 Bcf)
MARC II
(1 Bcf)
Cameron Pipeline
Expansion
(2.33 Bcf)
Southern Trail
(1.05 Bcf)
Sabal Trail
(1 Bcf)
Mountain Valley
(2 Bcf)
Gas Pipeline Capacity Additions Through 2018
Midwest via Ohio (5.3)
Gas Pipeline Capacity Additions - MidWest
MidWest (Ohio)
Bcf/d
4.0
2.0
REX (1200)
REX (200)
DTI Lebanon West II (130)
0.0
Bcf/d
Gas Pipeline Capacity Additions - Gulf
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Gulf (Ohio)
New Power Gen & Pipeline Projects in MISO
Major Pipeline Projects
Project Name
Date In
Service
Capacity From State To State
NEXUS Gas Transmission
Pipeline
6/1/17
1,500
OH
MI
Prairie State Pipeline
11/1/17
1,500
IL
IL
Cameron Access Project
12/1/18
800
LA
LA
Rover Pipeline Phase 1
12/1/16
2,200
PA
OH
Rover Pipeline Phase 2
6/1/17
1,050
OH
ON
TBD
400
ND
ND
WBI Dakota Pipeline
*Capacity = MMcf/d
Few power plants are being sited within
proximity of new pipeline projects
Pipeline Development Process
From announcement to in-service takes approximately 3 years
Early Development
Advanced Development
Realize potential opportunity
and conduct and open season
exercise (non-binding)
Begin obtaining ROWs and easements
Is there enough interest?
NO
cancel or
put project
on hold
File application for certificate
of public convenience and
necessity from FERC
YES
Develop project
design
(new pipeline,
expansion, etc.)
Pre-filing with FERC
•
•
•
NEPA Review
EA (~ 9 mo) or
EIS (~18 mo)
Public scoping
meetings
Data analysis
Public comment
Apply for necessary
state permits
Construction
Approved
Begin
construction
(can take up to
18 mos.)
Conduct
necessary tests
and place in
service
Project Example – Constitution Pipeline
Size: 30” diameter extending 124 miles
Capacity: 650,000 dekatherms
Est. In-service: June 2016
Cost: ~ $650,000,000
Operators: Constitution
Owners: Williams, Cabot, WGL, Piedmont Natural Gas
FEB 2012 – Cabot &
Williams announce JV to
develop project
APR 2012 – Constitution
enters pre-filing with
FERC
JUN 2012 – Begin
ground surveys
FALL 2012 – Begin public
open houses, FERC
scoping meetings, and
easement negotiations
JUN 2013 – Submit 7(c)
application with FERC
OCT 2014 – Final EIS
DEC 2014 – FERC issues
order certificating
project
MAY 2015 –
Construction begins
www.anga.us
twitter @ANGAus
For More on the Construction Process…
•
http://anga.us/blog/2015/5/28/beneath-back-country-beauty-a-striking-feat-of-engineering
FERC Certificate Process
Non-Environmental Review and Analysis
• Engineering – GQI, storage, hydraulic flow
• Tariff – rates, terms & conditions of service
• Policy – precedents, rules, regulations
• Accounting
File
Application
Parallel Processing Paths
Preparation of EA or EIS
• Water Resources
• Ecology – fish, wildlife, vegetation
• Cultural Resources – historic preservation
• Land use – recreation, aesthetics
• Soils and geology
• Air and noise
• Socioeconomic Impacts
• Alternatives
Issue
Order
EA Pre-filing Environmental Review Process ( ~ 9 mos.)
Applicant Process
Assesses market need and
considers project feasibility
Requests use of
FERC’s Pre-Filing Process
Studies potential site locations
Public
Input
Opportunities
FERC Process
Receives Applicant’s request to conduct its review of
the project within FERC’s NEPA Pre-Filing Process
Identifies Stakeholders
Formally Approves Pre-Filing Process and issues PF
Docket No. to Applicant
Holds open house to discuss project
Participates in Applicant’s open house
Conducts route studies and field surveys. Develops
application.
Issues Notice of Intent
for Preparation of an EA opening the
scoping period to seek public comments.
May hold public scoping meeting(s) and
site visits in the project area.
Consults with interested stakeholders.
Files formal application with the FERC
Issues Notice of Application
Analyzes data and prepares EA
Public
Input
Opportunities
If no scoping comments are received, EA is placed
directly into ELibrary. If substantive comments are
received, EA is mailed out for public comment.
Responds to comments
Commission Issues Order
Public
Input
Opportunities
Parties can request FERC
to rehear decision
Submits outstanding information to satisfy conditions
of Commission Order
Issues Notice to Proceed
with construction.
EIS Pre-Filing Environmental Review Process (~18+ mos.)
Applicant Process
Assesses market need and
considers project feasibility
FERC Process
Requests use of
FERC’s Pre-Filing Process
Receives Applicant’s request to conduct its review of
the project within FERC’s NEPA Pre-Filing Process
Studies potential site locations
Identifies Stakeholders
Holds open house to discuss project
Public
Input
Opportunities
Conducts route studies and field surveys. Develops
application.
Files formal application with the FERC
Formally Approves Pre-Filing Process and issues PF
Docket No. to Applicant
Participates in Applicant’s open house
Issues Notice of Intent
for Preparation of an EIS opening the
scoping period to seek public comments.
Holds public scoping meeting(s) and
site visits in the project area.
Consults with interested stakeholders.
Issues Notice of Application
Analyzes data and prepares Draft EIS
Issues Draft EIS
and opens comment period
Public
Input
Opportunities
Holds public comment meetings on the Draft EIS in the
project area
Responds to comments
and revises the Draft EIS
Issues Final EIS
Commission Issues Order
Public
Input
Opportunities
Parties can request FERC
to rehear decision
Submits outstanding information to satisfy conditions
of Commission Order
Issues Notice to Proceed
with construction.