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Is Natural Gas Ready to Be the Fuel of the Future?
The Interstate Natural Gas Pipeline Industry Response
APPA CEO RoundtablePhoenix, AZ
March 15, 2011
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U.S. Natural Gas Pipeline Network, 2009
Interstate Natural Gas Pipelines:A Robust Energy Highway
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A Highly Integrated Natural Gas Transmission Network
305,000 miles of natural gas transmission pipelines in U.S.
217,000 miles of interstate pipeline
88,000 miles of intrastate pipeline
1,400 compressor stations
11,000 delivery points, 5,000 receipt points, 1,400 interconnection points
24 market hubs
400 underground storage locations
49 pipeline export/import connections
8 LNG import terminals
Between 1997 and 2007, 53 pipeline companies reported that they spent $30.8 billion for interstate pipeline infrastructure. (2007 CWIP was $5.2 billion.)
Source: U.S. Department of Energy, Energy Information Administration
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6
1
23
4
43
27
24
26
8
54
5
3848
67
9
10
11
61
12
2325
42
40
13
28 29
45
4637
41
8
14
49
15
30
656667
16
17
31
6258
39
51 5253
44
47
56
50
18
57
Rockies Express East (1,800)
32 19
20
Market Responsive Infrastructure Additions
115.00 BCF/D Total115.00 BCF/D Total16,178 Miles16,178 Miles152 projects
212 certificates
Colorado Corridor23 Projects
29 Certificates12,930 MMcf/d
New England Corridor22 Projects
31 Certificates9,773 MMcf/d
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3435
59
36
Ruby Pipeline (1,456)
64
21
22
55
East Texas Corridor
18 Projects22 Certificates22,125 MMcf/d
60
63
Fayetteville Corridor
12 Projects23
Certificates20,240 MMcf/d
Major Pipeline Projects Certificated (MMcf/d)
January 2000 to February 2011
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Contrast with Electricity Transmission
345 kV
Transmission Projects
DC
765 kV
Source: FERC
Since 2000, 9 High Voltage (≥345kV)Interstate Transmission Lines have been built totaling 682 miles.
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Natural Gas Storage
Source: Energy Information Administration, Office of Oil & Gas, Natural Gas Division Gas, Gas Transportation Information System, December 2008.
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93 Certificated Storage
Projects Since 2000
for Expansion of or New Capacity
Source: FERC, Office of Energy Projects
Certificated capacity may not yet be fully operational
Natural Gas Storage:New and Expanded Capacity
933.175 Bcf working gas capacity
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Interstate Pipelines Are Key To Creating A Reliable Natural Gas
MarketThe United States is closer than ever before to being a single natural gas market with congestion limited to a few markets for a few periods
during the year.
The reason?
In addition to significant new recoverable reserves, important expansions and extensions of gas transmission capacity have reduced
the volatility of the price of gas delivered to the market.
Source: 2009 FERC State of the Market Report (released April 2010), page 14
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0
10
20
30
40
50
60
70
80
90
100
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010Calendar Year
Sustainable Operations and Safety Improvements-
Data: DOT/PHMSA Pipeline Incident Data (as of Jan. 19, 2011)
Long- term trend (average10% decline every 3 years)
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Transporting Natural Gas is Our Business.
Safety is Our CommitmentINGAA Pipeline Safety Task Force Guiding Principles
Our goal is zero incidents – a perfect record of safety and reliability for the national pipeline system. We will work every day toward this goal.
We are committed to safety culture as a critical dimension to continuously improve our industry’s performance.
We will be relentless in our pursuit of improving by learning from the past and anticipating the future.
We are committed to applying integrity management principles on a system-wide basis.
We will engage our stakeholders – from the local community to the national level – so they understand and can participate in reducing risk.
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Contact InformationR. Allan Bradley President & CEO
Questar Pipeline [email protected]
Greg HarperSenior Vice President & Group President, Pipelines and Field Services
CenterPoint [email protected]
Donald SantaPresident and CEO
Interstate Natural Gas Association of [email protected]