74
Dominion Energy Questar Pipeline, LLC 2018 Customer Meeting February 27, 2018 1
Dominion Energy Questar Pipeline, LLC
2018 Customer Meeting
February 27, 2018 1
February 27, 2018 2
Shelley Kendrick Director – Marketing and Business Development
Dominion Energy Questar Pipeline
February 27, 2018 3
Ron Jorgensen Vice President – Western Pipeline Operations
Dominion Energy Questar Pipeline
Core Values
February 27, 2018 4
Safety Ethics
One Dominion Energy Excellence
4
Recent Accomplishments
February 27, 2018 5
Dominion Energy Questar Pipeline
Safety
• Completed best safety year on record for injuries with no lost days, and
OSHA recordable rate of 0.87 for 2017
• Completed 218 miles of instrumented in-line inspection
• Completed 30 storage well-workovers and tubing inspections
Ethics
• Favorable results with all regulatory audits and safety inspections
• Participating in Dominion Energy environmental stewardship programs
• ~100% of colleagues participated in Diversity & Inclusion program
Excellence
• Strong customer service – continued improvement on 2017 Mastio survey
• Completed DEQP tariff modernization
• Clay Basin Delivery Project – 1.1 Bcf FSS
Teamwork • Joint development of new PHMSA storage integrity management plans
• Successful completion of merger related integration
February 27, 2018 6
DEQP Organization
Don Raikes Senior Vice President Dominion Midstream Operations
Anne Bomar Senior Vice President Pipeline Services & Optimization
Albert Bertagnolli Director, Transmission Operations
Lori Creer Director, Engineering & Gas Control
Ronald Jorgensen Vice President Western Pipeline Operations
Shelley W Kendrick Director ,Marketing & Business Development + QES
Brad Burton Director , Federal Regulatory Affairs
Mark Stevens Director, Federal Regulatory Accounting
2018 Priorities
February 27, 2018 7
Dominion Energy Questar Pipeline
Safety • Employee and contractor safety excellence (goal of zero accidents)
• Robust set of pipeline and storage integrity management activities
Ethics • Excellent environmental stewardship and regulatory compliance
Excellence
• Enhanced customer service – continuous improvement
• High operational reliability
• Clay Basin Delivery Project – 1.1 Bcf FSS
Teamwork • Strengthen relationships and dialogue with customers
• Ideas for new or enhanced services
Questions?
February 27, 2018 8
February 27, 2018 9
Anne Bomar
Senior Vice President
Pipeline Services & Optimization
Dominion Energy Artwork by Addison Jefferies (age 5)
• Dominion Energy • Company Overview
• Who We Are
• Gas Infrastructure Group
• Major Gas Infrastructure Projects
• Dominion Energy Questar Pipeline
Dominion Energy Overview
13 February 27, 2018
14
Dominion Energy
26,200 MW of electric generation
(includes ~765 MW of solar generation in-service)
6,600 miles of electric transmission lines
2.6 million electric customers in VA and NC
Atlantic Coast Pipeline (in progress)
15,000 miles of natural gas transmission/gathering/storage pipeline
1 trillion cubic feet of natural gas storage operated
Dominion Energy Cove Point LNG Facility
2.3 million natural gas customers in 5 states
1.4 million non-regulated retail customers in 17 states
One of the nation’s largest producers and transporters of
energy.
February 27, 2018
Electric Transmission 6,600 miles of transmission lines
Favorable regulatory environment
Electric Distribution 57,600 miles of distribution lines
2.6 million franchise retail customer accounts in VA and NC
Utility Generation 21,500 MW of capacity
Balanced, diverse fuel mix
Favorable regulatory environment
Merchant Generation 4,700 MW of capacity, including
nuclear, gas and renewable power
Active hedging program for energy revenue/margins
Gas Transmission Together with Gas Distribution,
operates one of the largest natural gas storage systems in the U.S.
15,000 miles of pipeline in 11 states
Cove Point LNG import facility
Eastern assets in Marcellus and Utica Shale regions
Gas Distribution 51,300 miles of distribution pipeline
and 2.3 million natural gas customer accounts in five states
Dominion Energy Solutions
Power Delivery Power Generation Gas Infrastructure
Dominion Energy Profile
15 February 27, 2018
Electric Distribution
• 2.6 million franchise customers in NC, VA
• 385,000+ new connects, 2006-2016
• 57,600 miles of line in VA and NC
• Strategic Undergrounding program
Electric Transmission
• 6,600 miles of line in NC, VA and WV
• Best-in-class physical and cyber security investments, replacing infrastructure, serving new load
Power Delivery Group
16 February 27, 2018
Power Delivery Group – PJM Interconnection
17
PJM Territory*
Integrated into PJM in 2005
Provides access to economic energy, to minimize costs for customers
*Source: PJM May 2017
Dominion
Zone
February 27, 2018
Power Generation Group
February 27, 2018 18
• Operates Dominion Energy’s 26,200 MW generation fleet
– 21,500 MW regulated utility
– 4,700 MW merchant
– Balanced, diverse fuel mix
• Regulated Utility Generation – Division of Dominion Energy Virginia / North Carolina
– ~679 MW1 projected peak demand growth over next 10 years
– Rider projects to support growth
– Virginia fuel factor reset effective each July 1st
• Merchant Generation – Nuclear, gas and long-term contracted renewables
– Active hedging program for energy revenue/margins
1 Source: 2017 PJM Load Forecast Report (January 2017), represents VEPCO’s portion of the PJM DOM Zone
Power Generation Fuels Mix
February 27, 2018 19
Coal 17%
Nuclear 20%
Natural Gas 35%
Renewable 5%
Oil 8%
Hydro 8%
Non-utility Generation
7%
2016 Electric Capacity by Fuel Type for Regulated and Merchant Fleet1,2
Coal 18%
Nuclear 37%
Natural Gas 32%
Renewable 3%
Oil 1%
Hydro 3%
Purchased Power, net
6%
2016 Electric Production by Fuel Type for Regulated and Merchant Fleet1,2,3
1 Reflects Dominion Energy’s owned percentage; includes Non-utility Generation under contract. 2 Excludes Morgans Corner (20MW) solar facility in NC, which is dedicated to serving a non-jurisdictional customer.
3“ Purchased Power, net” includes NUG electric production and market purchases net of market sales. IR Reference Book
Merchant Generation Portfolio
February 27, 2018 20
Over 60% of Merchant electric production from carbon-free generation in 2016
Dominion Energy Midstream Partners
February 27, 2018 21
• DM is a growth-oriented Delaware master limited partnership (MLP)
• Formed by Dominion Energy in March 2014
• Currently owns:
– Preferred equity interests in Dominion Energy Cove Point LNG, LP
– Dominion Energy Carolina Gas
– Dominion Energy Questar Pipeline, LLC
– About one-quarter of the Iroquois Pipeline
• DM also owns Rights of First Offer (ROFO) on:
– Dominion Energy’s remaining interests in Cove Point LNG
– Dominion Energy’s 50% ownership of the Blue Racer Midstream JV
– Dominion Energy’s 48% ownership interest in Atlantic Coast Pipeline
IR Reference Book
Executing the Strategy
Dominion Energy Midstream Partners
February 27, 2018 22
Source of Growth Financial Flexibility
Asset Profile Stable and predictable cash flows
Long-term contracted assets
No commodity risk
No equity issuances needed until mid to late 2018
Dropdown strategy supports 22% annual growth rate
IR Reference Book
IPO 2015 2016 2017 2018 2019 2020
* Dropdowns subject to Dominion Energy and DM Board approval.
Asset Dropdown Strategy*
DECG
Cove Preferred
Cove Equity
Questar Pipeline Iroquois
ACP / BRM
Serve our customers safely and reliably
Strengthen our communities
Minimize environmental impacts
Reward our shareholders
Live our values
Dominion Energy – Our Mission
23 February 27, 2018
Dominion Energy Safety Statistics
24
157 145
127 108 110
98 96
4
0.95 0.92
0.83
0.74 0.74
0.66
0.60
0.29
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0
20
40
60
80
100
120
140
160
180
2011 2012 2013 2014 2015 2016 2017 2018 YTD
OSHA Incidents OSHA Incidence Rate
February 27, 2018
Dominion Energy Sustainability
25
$3.7 Billion of environmental spending since 2000
43% reductions in carbon emission intensities since 2000
4.4 Bcf of methane saved through voluntary reduction programs
21% Coal ash beneficially reused
262 Employees participated in environmental projects in 10 states
Environmental Highlights
#1 "Best for Vets" Award, Energy Sector, MILITARY TIMES Magazine
#2 “Most Admired Companies,” Utilities Sector, FORTUNE Magazine
The “Just 100” America’s Best Corporate Citizens, FORBES Magazine
$26.6 million in charitable giving
$12.9 million of low-income fuel assistance
101,000 hours of employee volunteer community service
Social Highlights
February 27, 2018
26
Environmental Leadership
IR Reference Book
Our diversified Generation fleet exceeds 2,000 megawatts* of clean energy in 9 states
* Dominion Energy’s ownership in renewable assets in-service or under development, excluding 687 MW of renewable assets operated through joint ventures., and excluding the Virginia City Hybrid Energy Center.
February 27, 2018
February 27, 2018 27
Strategic Advantages Drive Value for Shareholders
Industry Leading 8%+ Dividend
Growth*
6-8% EPS CAGR 2017-2020
~90% Regulated Operations
Large Step Change Growth
Project Execution
Diverse Capital Growth – Gas /
Electric
MLP Cash Flow Flexibility
*Annual dividend rates subject to Board approval
IR Reference Book
$48
$61 - $63
$4.2
$3.2
$3.0 - $4.0
$3.0 - $4.0
2016 2017 2018 2019 2020
Net Plant
1 Excludes 2017-2021 DD&A and Maintenance Capex
2017 – 2020 Growth Plan ($ billions)
Total Dominion Energy Capex
February 27, 2018 28
Net Plant1
$13 - $15 billion Growth Capex
Average annual spend of ~$3.3 - $3.8 billion
2019 & 2020 growth opportunities include: • Additional VA and NC solar • Pipeline expansions • Surry / North Anna license extensions
• Environmental compliance • Questar pipeline and storage
IR Reference Book
Gas Infrastructure Group
29
Dominion Energy is strategically positioned to serve both Eastern U.S. and Western U.S. natural gas markets
Dominion Energy gas utility Dominion Energy gas pipeline Cove Point
IR Reference Book
Atlantic Coast Pipeline (subject to regulatory approval)
February 27, 2018
Service Territory
High Pressure Transmission
Storage
Toledo Cleveland
Columbus
Cincinnati
Gas Distribution - East
30
IR Reference Book
Service Territory
Interstate Pipeline
Morgantown
Clarksburg
Parkersburg
Charleston
• Dominion Energy Ohio, West Virginia 173 Bcf underground storage
3,100 miles transmission, gathering, storage pipeline
22,100 miles of natural gas distribution pipeline
1.3 million customers
536.8 Bcf of throughput in 2016
• Key Ohio Programs Pipeline Infrastructure Replacement (PIR) program,
authorized for $200 million in 2018
House Bill 95, allowing deferral of costs for annual capital expenditure plans, carried at LTD rate
Riders: Uncollectible Expense (UEX), Demand Side Management, Automated Meter Reading (AMR)
• Key West Virginia Programs
Pipeline Replacement & Expansion Program (PREP), authorized for approximately $20 million per year.
February 27, 2018
Gas Distribution - West
31
IR Reference Book
• Dominion Energy Utah/Wyoming/Idaho
29,200 miles of mains and service lines
Over 1 million gas customers
$2.5 billion of assets
• Key Programs
Infrastructure replacement rider, investing approximately $65 million per year
Decoupling/CET, weather normalization, gas cost pass through, bad-debt tracker
• Wexpro - Regulated Gas Supply
State-regulated (UT and WY) based on traditional utility cost-of-service principles
Supplies >60% of DEUWI annual gas needs
Three successful expansions since 2013
February 27, 2018
• Dominion Energy Transmission
3,900 miles of pipeline in six states
756 Bcf of underground storage
• Dominion Gathering & Processing
3,300 miles of gathering pipeline
270,000 mcf per day of natural gas processing capacity
• Dominion Energy Cove Point LNG
1.8 Bcf/d of natural gas send-out
14.6 Bcf equivalent of LNG storage
• Dominion Energy Carolina Gas Transmission
1,500 miles of transmission pipeline in South Carolina and Georgia
• Dominion Energy Questar Pipeline
2,200 miles of pipeline
131 Bcf of underground storage
• Additional Businesses
Iroquois Gas Transmission
Blue Racer Midstream
Dominion Energy Solutions
Retail Gas & Products/Services
Gas Infrastructure Group - Transmission
32
IR Reference Book
February 27, 2018
DETI Pipeline
Storage
Cove Point
Utica Shale
Dominion Energy Transmission, Inc.
33
Marcellus Shale
IR Reference Book
• Links to major pipelines and markets in the Mid-Atlantic, Northeast and Midwest
• Key connection to Dominion Energy’s Cove Point pipeline
• Assets
3,901 miles of transmission and storage pipeline
Operates 756 Bcf of underground natural gas storage
16 pools located in West Virginia, Pennsylvania and New York
Ownership share: 538 Bcf
*Dominion Energy Ohio and Dominion Energy Questar Pipeline operate and own 173 Bcf and 131 Bcf of natural gas storage. February 27, 2018
OH
NY
PA
MD WV
Demand Driven Growth
Gas Infrastructure Growth - East
34
~$650 million total project Capex
New Market • Firm transport from Leidy, PA to serve
the NY market
• Estimated investment: ~$180m
• Volume: 112,000 dth/d
• In-service: 4Q 2017
Leidy South • Firm transport to move Leidy supplies to
Mid-Atlantic market
• Estimated investment: $210m
• Volume: 155,000 dth/d
• In-service: 4Q 2017
Keys Power Generation • Firm transport from Cove Point Pipeline
to Keys Energy Center
• Estimated investment: $37m
• Volume: 107,000 dth/d
• In-service: March 2017
Eastern Market Access • Firm transport to serve LDC and power
generation
• Estimated investment: $148M
• Volume: 294,000 dth/d
• Expected in-service: 3Q 2018
Lordstown • Firm transport to serve power
generation
• Estimated investment: $34m
• Volume: 140,000 dth/d
• In-service: 3Q 2017
IR Reference Book
Sweden Valley • Firm transport to move PA production
off system
• Estimated investment: $48m
• Volume: 120,000 dth/d
• Expected in-service: 4Q 2019
February 27, 2018
Dominion Energy Cove Point – Liquefaction Project
35
• Liquefy an average of 0.75 Bcf per day of inlet natural gas
• Produce 5.25 mtpa of LNG output
• Fully subscribed capacity
20-year terminal service agreements
Joint venture of Sumitomo Corporation and Tokyo Gas
US affiliate of GAIL (India) Ltd.
• EPC Contractor: IHI/Kiewit Cove Point
• DOE has approved the export of commissioning cargoes
• Final tuning and testing phase
In-Service March 2018
IR Reference Book
February 27, 2018
Atlantic Coast Pipeline
36
ACP
DETI Pipeline
Storage
Cove Point
Marcellus
Shale
Utica
Shale
* Dominion Energy will construct, operate and manage the pipeline
OWNERSHIP STRUCTURE:
Dominion Energy* 48%
Duke Energy 47%
Southern Company 5%
IR Reference Book
• 600+ miles of primarily 42” pipeline
• Three gas-fired compressor stations
• West Virginia, Virginia, North Carolina
• 1.5 Bcf per day capacity
>90% subscribed through 20-year contracts, with electric and gas utilities
Expandable to >2 Bcf per day
• Limited notices to proceed issued by
FERC in December 2017
Tree felling underway
Full construction at key sites
• Expect completion in 2H 2019
February 27, 2018
DETI – Supply Header Project
37
• Facilities located in Pennsylvania
and West Virginia
• Capacity 1.5 Bcf per day,
subscribed through ACP shippers
• Limited notices to proceed issued
by FERC in December 2017
Tree felling underway
Full construction at key sites
• Expect completion in 2H 2019
ACP
DETI Pipeline
Storage
Cove Point
Marcellus
Shale
Utica
Shale Supply Header receipt points
Project creates access to diverse gas supplies for ACP customers
~$500 million total Capex
IR Reference Book
February 27, 2018
Rockies-based Pipeline Network
Dominion Energy Questar Pipeline Company
38
• ~2,200 miles of pipeline
• 131 Bcf of underground natural gas storage
• “Hub of the Rockies” – critical interconnectivity among end-use customers, regional gas supplies and major pipelines
• Regional transmission and storage needs, to serve LDC load growth and to meet the long-term potential for coal-to-gas power generation switching
Kern River
Ruby
Northwest
REX
Colorado Interstate
Dominion Energy Questar Pipeline
White River Hub
Overthrust
Jordan Cove LNG
= Key interconnect
GREEN RIVER BASIN
UINTA BASIN
PICEANCE BASIN
Port of Kalama
February 27, 2018
DEQP – Looking Ahead
February 27, 2018 39
We aim to add value: bringing Dominion Energy’s experience and resources into partnership with the Questar Pipeline team and our customers.
• Build on our track record together
• Safe, Reliable Operations
• Innovative, Flexible Services
• Well-Financed Infrastructure Growth
• Explore best practices and opportunities • Customer Processes and Communications
• Transportation and Storage Service Options
• Infrastructure Needs
Thank You.
Questions?
40 February 27, 2018
February 27, 2018 41
Lori W. Creer Director, Engineering and Gas Control
Dominion Energy Questar Pipeline
• 2018 Maintenance Plan
• Commitment to Pipeline and Storage Integrity
• Commitment to Pro-active Reliability Maintenance
Pipeline Maintenance
February 27, 2018 42
February 27, 2018 43
2018 Maintenance Schedule - Possible Shipper Impact
Month Category Preliminary
Dates Location Project Possible Customer Impact Duration
April
Reservoir Test April 3-12 Clay Basin Annual withdrawal test
April 3, constant 250 MMcf/d Withdraw rate
9 days April 4, constant 300 MMcf/d Withdraw rate
April 5-11, reservoir shut-in
System Integrity April 16-20
ML 40
(Fidlar to
Mesa Tap)
Tap retirements and
minor pipe replacement No deliveries to Chipeta 5 days
July
Compliance &
Maintenance July 19 Oak Spring
Annual maintenance
and DOT compliance ML 104 capacity reduced to 300 MDth/d 1 day
System Integrity July 25 JL 46/47 In line inspection
(Smart Pigging)
Altamont MAP 145 reduced to 42,000 Dth/d
1 day
Pleasant Valley MAP 413 , Randlett Tap
MAP 419, Brundage MAP 144, North
Monument Butte MAP 266 all need to be off
for 12 hours and nominations reduced by
50%.
August Station
Modification August 21
Bull
Mountain Install check valve Bull Mountain MAP 99 no flow for 8 hours 8 hours
October Reservoir Test October 9-17 Clay Basin Annual injection test
Oct. 9, constant 175 MMcf/d Injection rate
9 days Oct. 10, constant 215 MMcf/d Injection rate
Oct. 11-17, reservoir shut-in
Maintenance October 3 Oak Spring Re-cycle valve mods ML 104 capacity reduced to 300 MDth/d 1 day
2018 planned In Line Inspection – roughly 340 miles
Pipeline Integrity Management
February 27, 2018 44
Note: 2017 completed In Line Inspection – 218 miles
ML1, 13, 15 Eakin to Cash
ML1, 73.3 miles, 18” ML13, 73.3 miles, 18” ML15, 73.8 miles, 20”
Caliper/MFL
JL46/47 Altamont to 40-47 Jct
39.2 miles, 12”, Multi Data Set
Caliper, AMFL, SMFL
ML60 Woodruff to Hyrum Gate
39.2 miles, 20”, MFL
JL44 Gordon Creek to Blue Cut Ditch
31.8 miles, 6”, Blue Cut Ditch to Ferron
9.6 miles, 6” Caliper/MFL
• PHMSA compliant Storage Integrity Management Plan
• Successful implementation January 18, 2018
• Well work overs in 2018 – 7 planned
• 2017 Storage Integrity
• Completed 10 well workovers and 20 tubing inspections
Storage Integrity Management
February 27, 2018 45
• Pro-Active Erosion Mitigation • Planned 2018 – 11 pipeline
• Completed 2017 – 34 pipeline and 2 span
• Compressor Station Overhaul/Exchange • Planned 2018
• Kastler #5
• Oak Spring #1
• Completed 2017 • Kastler #4
• Rock Springs #2
• Oak Spring #2
• Thistle #1
• Blind Canyon #2
• Simon
Pipeline Reliability Maintenance
February 27, 2018 46
Questions?
February 27, 2018 47
February 27, 2018 48
Joseph Hulse Manager - Marketing
Dominion Energy Questar Pipeline Services, Inc.
• Dominion Energy News
• Customer Experience Improvements
• 2018 Mastio Survey Results
• Customer Tools
• Opportunities
Agenda
February 27, 2018 49
Follow Dominion Energy & Dominion Energy Utah
Dominion Energy News
February 27, 2018 50
Customer Experience Improvements
February 27, 2018 51
DEQP is dedicated to providing the highest quality of support & service to its customers
Communication:
• Comprehensive review & analytics of 2017 Mastio survey
• Notice Templates Upgraded: • Clear, efficient and timely communication
• Improved notice structure readability on web
• Maintenance Calendar Notices – Changes Highlighted • Firm contract holders contacted regarding events
• ICE Chat for Customer Representatives
• “101” Presentations created on all DEQP websites
Customer Experience Improvements
February 27, 2018 52
DEQP is dedicated to providing the highest quality of support & service to its customers
Customer Service:
• Proactive Communication
• Ongoing Representative Training
• Interruptible Discounts & Intraday Transport Sales
• Customer Hotline: 801-324-5200 (Effective After Hours Support)
Customer Experience Improvements
February 27, 2018 53
DEQP is dedicated to providing the highest quality of support & service to its customers
Creativity & Innovation: • New Services: Firm Peaking
• Effective September 1, 2017
• Tariff Improvements: DEQP Section #5 Acquiring Firm Service • Effective December 1, 2017
• Park & Loan Program • Futures to Futures, Cash to Futures, Cash to Balance of Month • Sophisticated model • Meet with operations continuously to optimize opportunities
• New Customer Outreach
• PipeViewer Upgrade • December 2017 rollout, web based, intuitive navigation
Customer Experience Improvements
February 27, 2018 54
DEQP Updated “Acquiring Firm Service” Tariff To Meet Customers Needs In A Dynamic Market
Highlights: Section #5 “Acquiring Firm Service”
• All posted capacity is first come first served • Unless an auction notice is posted
• Auction Procedures Updated: • Parties can update bid until deadline • Compete round only triggers for parties tied for the highest economic value • Compete round reduced to ½ hour
• Ability to enter into prearranged deals
• Defined date for Short Term Amendments • 4th to last business day of each month
2018 Mastio Survey Results
February 27, 2018 55
DEQP is dedicated to improved performance
Thank you for participating!
Rankings released late February 2018
Committed to improving our performance and customer service
Customer Tools
February 27, 2018 56
Online Calculator Provides Example of Injection & Withdrawal Quantities Based On Current Conditions
Customer Tools
February 27, 2018 57
• Same log-in as QuestLine
• Save link to home screen on smartphone
• Old PipeViewer will be taken out of service March 12, 2018
New PipeViewer is web-based, search enabled and has intuitive navigation
Opportunities Available transportation paths to Goshen & Kanda (WIC, CIG, OTPL)
February 27, 2018 59
OPAL
WHITE RIVER HUB
WAMSUTTER
GOSHEN
Rock Springs / Kanda
Fidlar
Price
GREEN RIVER BASIN
2,263
10,000
DE Overthrust Pipeline
DE Questar Pipeline
Natural Gas Hub
Clay Basin Storage
Opportunities 2018 Potential Expiring Transportation Contracts
8,000
3,300
Opportunities Available transportation paths to KRGT (Hams Fork, Roberson, Painter) Ruby, & REX
61
61
Proposed Pipeline
DE Questar Pipeline
DE Overthrust Pipeline
WHITE RIVER HUB • DE Questar Pipeline • Rockies Express • Northwest • TransColorado • WIC • CIG
GOSHEN • DE Questar Pipeline • Kern River
WAMSUTTER • DE Questar Pipeline • Rockies Express
• WIC • CIG
OPAL • DE Questar Pipeline • DE Overthrust • Kern River
• Ruby • CIG • Northwest
CLAY BASIN
Cryogenic Processing
Natural Gas Market Hub
Natural Gas Storage
Kern River Pipeline
DE Questar Pipeline
DE Overthrust Pipeline
Kern River Pipeline
Specifications Description
Natural Gas Storage
(BCF)
• 54 Bcf working gas • 66.21 Bcf cushion gas
Interconnect Capacity
(Dth/d)
• DE Questar Pipeline • Injection: 217,000 • Withdrawal: 700,000
• Northwest Pipeline • Injection: 250,000 • Withdrawal: 320,000
* Numbers listed are meter sizing, and actual volumes depend on pipeline conditions
Location
• Daggett County, Utah • NE corner of Utah near
Wyoming & Colorado borders • 50 miles from Rock Springs, WY
Clay Basin Storage Largest Natural Gas Storage Facility in the Rocky Mountains
0
10
20
30
40
50
60
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Min/Max Range AVG 08-17 '08-09 '09-10 '10-11 '11-12
12-13 13-14 14-15 15-16 16-17 17-18
MM dths
February 27, 2018 62
Clay Basin Inventory As of February 22, 2018 Working Gas Inventory is 15.0 MMDTH
February 27, 2018 63
• First-come, first-served interruptible service
• Based on operational conditions at Clay Basin
• Futures based approach
• Fuel: Injected (2%), In-Place Transfer (0.2%)
• Paid in-cash or in-kind
• Pre-paid service within five days of invoice, may
need to post credit for Loans
• PAL1 Compressor: 25,000 Dth/d
• Priority of Service
Opportunities DEQP – Park & Loan (PAL1)
February 27, 2018 64
• Parties need a signed NAESB Base
Contract with DEQP
– NAESB applies only to the transaction
• Bidders must meet credit criteria
• Winning bidder selected within 10
minutes
• Must have an ISS, FSS, or PAL
account to transfer volumes
Opportunities DEQP – Stipulation Gas Sales
February 27, 2018 65
Summary
• DEQP is focused on continuous
improvement to provide better customer
service and product offerings
• Customer opportunities include: – Pipeline transportation capacity
– Storage capacity
– PAL1
– Stipulation Gas Sales
Questions?
February 27, 2018 66
Joseph Hulse Manager - Marketing
Dominion Energy Questar Pipeline, LLC 801-324-5138
February 27, 2018 67
John Kinder Manager – Gas Business Development
Dominion Energy Questar Pipeline Services, Inc.
• Clay Basin Delivery Project
• More Storage Expansions?
• Westward Transportation Potential
• Hams Fork / KRGT Deliveries
• Liquidity and Interconnections
• Summary: What’s Next?
Agenda
February 27, 2018 68
69
69
Proposed Pipeline
DE Questar Pipeline
DE Overthrust Pipeline
WHITE RIVER HUB • Questar Pipeline • Rockies Express • Northwest • TransColorado • WIC • CIG
GOSHEN • Questar Pipeline • Kern River
WAMSUTTER • Questar Pipeline • Rockies Express
• WIC • CIG
OPAL • Questar Pipeline • Overthrust • Kern River
• Ruby • CIG • Northwest
CLAY BASIN
Cryogenic Processing
Natural Gas Market Hub
Natural Gas Storage
Kern River Pipeline
Questar Pipeline
Overthrust Pipeline
Kern River Pipeline
Project Overview
• Converting 1,171,500 Dth of existing
interruptible storage to Firm Storage
Service with associated MRD
• Upgrading two wells to fully functional
injection/withdrawal capability
• Installing two new dehydration units
and surface facilities
• Successful Open Season
• FERC approval received last week
• Injections begin in April 2018
Clay Basin Delivery Project
February 27, 2018
Additional Storage Expansions?
February 27, 2018 70
• Clay Basin continues to be valued by the market
• Recent Open Season was very successful
• Looking for incremental efficiencies and expansions
Overthrust: Westward Potential Increasing Deliverability from Wamsutter to Hams Fork
February 27, 2018 71
Date Capacity Available
Long Term Capacity
(Dth/d) Primary Receipt/Delivery Points End Market
Now 200,000 Wamsutter Receipt/Various Delivery
200,000 Dth/d • Kern River • Northwest Pipeline • Ruby
2020 500,000 Wamsutter Receipt
Hams Fork & Various Delivery 500,000 Dth/d
Upgrade Measurement, Yard Modifications Operate two mainlines at
separate pressures, with one line at a higher pressure
Upgrade Measurement at Hams Fork
Upgrade Measurement at Wamsutter
WHITNEY CANYON
WAMSUTTER
OPAL
Dominion Energy Overthrust Pipeline
Dominion Energy Questar Pipeline
Compression Facility
POINT OF ROCKS
ROCK SPRINGS
ROBERSON
PAINTER
Overthrust: MORE Westward Potential New compression delivers more volume
February 27, 2018 72
WHITNEY CANYON
WAMSUTTER
OPAL
Dominion Energy Overthrust Pipeline
Dominion Energy Questar Pipeline
Compression Facility
POINT OF ROCKS
Restage Existing Compression, Additional
Compression
Restage Existing Compression, Additional
Compression
ROCK SPRINGS
ROBERSON Restage Existing Compression, Additional Compression, &
Upgrade Measurement
Date Capacity Available Long Term Capacity
(Dth/d)
Primary Receipt/Delivery Points
End Market
Future 800,000 Wamsutter Receipt
Various Delivery 800,000 Dth/d
• Kern River • Northwest Pipeline • Ruby
PAINTER
Hams Fork / Kern River Upgrade
• Delivery capacity to Kern River has been sold out in
recent winters
• Open season conducted to upgrade Kern River
interconnect at Hams Fork
• Can efficiently add 120,000 Dth/d of new delivery
capacity
• We’re ready when you are…
February 27, 2018 73
• We want to make it easier to trade Clay Basin
• Considering new interconnects with other pipelines
• Leverage off-system transportation
• More liquidity = stronger market
Liquidity and Interconnections
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Summary
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There’s never been a better time to have a good idea!
Clay Basin continues to be the jewel of the Rockies
Overthrust is your link to the west
Questions?
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John Kinder
Manager – Gas Business Development
Dominion Energy Questar Pipeline, LLC
801-324-5242
Dominion Energy Questar Pipeline, LLC
2018 Customer Meeting
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