1
Pipeline Operations Update
Ray Miller
Vice President, Pipeline Management
2
TGP Pipeline Management
• Harvey
• System Summary
• Winter 2016/2017
• Summer 2017
• Pipeline and Storage Integrity
• Operational Expectations
3
TGP System Map
100 Line 800 Line
500 Line
200 Line
300 Line
200 Line
87
1
315 245 261
823 527
860
40
204
219
11,800 miles of pipe Active supply/delivery meters ~734 Storage capacity ~99 bcf Direct connected power ~23,300 mw
Bear Creek
Colden Hebron-Ellisburg-Harrison
267
9
110
321 Rivervale
Mahwah
4
Harvey
5,000
6,000
7,000
8,000
9,000
10,000
MD
TH
TGP System Wide Deliveries
0
300
600
900
1,200
1,500
15-A
ug
16-A
ug
17-A
ug
18-A
ug
19-A
ug
20-A
ug
21-A
ug
22-A
ug
23-A
ug
24-A
ug
25-A
ug
26-A
ug
27-A
ug
28-A
ug
29-A
ug
30-A
ug
31-A
ug
1-S
ep
2-S
ep
3-S
ep
4-S
ep
5-S
ep
6-S
ep
7-S
ep
8-S
ep
9-S
ep
10-S
ep
11-S
ep
12-S
ep
MD
TH
TGP Texas Deliveries
5
Harvey
Brazos River
Basement Sta. 9
Daylight at Sta. 9
6
Harvey
Warehouse
Mosquitoes
7
System Wide Flows
800 Line
Northeast ~4.5 Bcf/d Long haul south ~4.5 Bcf/d
8
TGP Gas Receipts
800 Line
Marcellus ~4.1 Bcf/d ↑ Utica ~1.1 Bcf/d Eagle Ford ~.7 Bcf/d Haynesville ~.4 Bcf/d Traditional and Offshore ~.5 Bcf/d ↓ Pipelines and storage ~2.0 Bcf/d
502 687 871 1,085 601
654 664
808
1,998 2,080
2,107
2,254
957 1,106
1,369
1,676 2,088
2,070
2,154
2,470 1,015
1,072
1,047
1,089
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2014 2015 2016 2017 YTD
ZONE 6
ZONE 5
ZONE 4
ZONE 3
ZONE 2
ZONE 1
ZONE L
ZONE 0
9
TGP System Wide Throughput
*YTD through August
MD
th/d
+5% +6%
+14%
10
Winter Northeast 2016/2017 Temperatures
200
400
600
800
1000
1200
1400
Nov Dec Jan Feb Mar
HD
Ds
Winter 2016/17
Winter 2015/16
Winter 2014/15
Winter 2013/14
30 Year Average
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2016 2017
System Wide LDC Demand M
Dth
/d
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2016 2017
System Wide Power Demand
12
MD
th/d
13
National Storage Activity
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National Storage Regulations
• Evolving regulation of Gas Storage following Aliso Canyon incident
• Safety/Integrity Recommended Practices (RP) Development
– Industry-initiated in 2011; working groups formed in 2012
– Participation: Operators (including Kinder Morgan), consultants, State & Federal regulators
– 3-year process completed in 2015
• API RP 1170 and 1171 final publication in 2015
– Salt Cavern (1170)
– Depleted & Aquifer Reservoir(1171)
– Design, operations, integrity and safety procedures addressed
15
Bear Creek Storage Work
• Installing/removing tubing may require site preparation and workover rigs to handle thousands of pounds of steel.
• One of the greatest risks to people and the environment is the installation and removal of the tubing and the packer.
o Tubing must be removed to inspect the casing integrity. o Packers can fail and thus should be installed only where a risk
based analysis indicates.
Winter System Wide 2016/2017
• Overview
– Fairly average winter
– System-wide throughput increased 4% compared to winter 2015/2016
– Storage Inventories down from 2015/2016
• Demand
– TGP system peak (24-hr) ~11.8 Bcf/d on Jan 7, 2017 (including storage withdrawals)
– Power plant load peak (24-hr) ~ 1.8 Bcf on Jan 7, 2017
– Several peak winter days in January
– Exports to Mexico increased 21% compared to winter 2015/2016
• Supply
– Marcellus and Utica remained strong
– Eagle Ford declined slightly
– Dracut / Distrigas decreased
16
17
Winter System Wide Flows 2016/2017
volumes are MDth/d
2014-2015 2015-2016 2016-2017 % Change
LDC 2,079 1,654 1,720 4%
Power 1,040 1,132 1,095 -3%
Interconnects 4,727 4,942 5,173 5%
Mexico 499 696 844 21%
Other 240 366 299 -18%
TOTAL 8,585 8,790 9,131 4%
18
Station 315 Work
Summer System Wide 2017
• Demand
– Relatively flat to previous year
– Slight increase in exports to Mexico
– Northeast market demand experienced slight decrease
• Storage
– Northern Storage levels are slightly down from last year (91% vs 96%)
• Requesting customers to withdraw Northern storage ISS by Sep 30, 2017
• Managing storage inventory in Northern storage fields
– Bear Creek Storage levels are higher than last year (63% vs 44%)
– A lot of maintenance to finish up
19
20
Summer System Wide Flows 2016/2017
2015 2016 2017* % Change
LDC 925 866 847 -2%
Power 1,344 1,524 1,357 -11%
Interconnects 4,346 4,638 4,625 0%
Mexico 576 757 786 +4%
Other** 443 272 450 +65%
TOTAL 7,633 8,057 8,064 +0.1%
Volumes are MDth/d * Through August
**Other includes fuel, storage and industrial
-
200
400
600
800
1,000
1,200
1,400
1,600
2015 2016 2017*
Zone 6
Zone 5
Zone 4
Zone 2
Zone 1
Zone 0
21
Summer System Wide Power Demand
+13%
MD
th/d
* Through August
-11%
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Pig Launcher
23
Types of Pigs disk pig smart metal loss pig brush pig
gauge pig
smart pig in the trap
smart caliper pig
Mrs. Piggy
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Pipeline and Storage Integrity
Pipelines
• MFL pipe metal loss
• AFD long seam metal loss
• HSD hard spot detection
• EMAT stress corrosion cracking
• Material verification hydrotest
• Make piggable projects
• Class changes projects
• New project modifications
• Pressure weld remediation
• Geo hazard remediation
• Known anomaly remediation
• Wrinkle bend analysis
Storage Fields
• MFL casing metal loss
• Noise logs
• Gamma ray neutron logs
• Cement bond logs
• Well head maintenance program
• Master valve replacement program
• Annulus pressure program
• Down hole shut-off valves
• Bottom hole pressure survey
• Shut-in tests
• Inventory verification
• Tubing and packer review
25
Possible Service Interruptions
• Maintenance (Pipe and horsepower)
– Planned
– Unplanned
• Integrity
– Anomaly remediation
• Expansion project work
– Pig launchers and receivers (Installing, modifying, operating)
• Other
– Soil movement remediation program
– Class location upgrades
– Hurricane Harvey
26
Tools TGP Uses To Mitigate Outages
• Communication
– Post EBB communications early
– Once posted, communicate with shippers
• Operational Strategy
– Adjust line pack to accommodate minor outages
– Utilize existing storage capacity
• External Options
– Work with other pipelines to mitigate effects
– Manage imbalance with other pipes before and after an outage
– Acquire third party service
27
Operational Expectations
• Continued high utilization across the system
– Strong Marcellus and Utica supplies
– Increased Haynesville and Eagle Ford drilling
– New LNG and Mexico markets
• Continued maintenance, integrity, and expansion related activities
– System-wide work
– Limited operational flexibility
• Continued restrictions
– Depth of restrictions depend upon many factors
• Continued safe and reliable deliveries to firm shippers
Station 317 Work
28
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Tennessee Gas Pipeline 24 Hour Contact List
Gas Control
24 hour and emergency
800-231-2800
John O’Neal – Mgr
713-420-6106
Cell –832-571-9866
Layne Sanders – Dir
713-420-5024
Cell – 832-563-5024
Danny Ivy - VP
713-369-9311
Cell – 713-829-2761
Ray Miller – VP
713-369-9330
Cell – 713-206-8338
Transport and Storage
24 hour Scheduling Hotline
713-420-4999
Cathy Soape – Manager
713-420-3814
Cell – 713-922-5083
Debbie Vasquez – Manager
713-420-3864
Cell – 713-806-7723
Sherri Glazebrook – Director
713-420-3677
Cell – 281-678-1183
Gene Nowak – VP
713-369-9329
Cell – 713-252-9759
Commercial/Marketing
Jason Connelly - Director
713-420-2446
Cell – 713-444-3940
Ernesto Ochoa – Director
713-420-1734
Cell – 281-414-3823
Kim Watson – President
713-369-9233
Cell – 713-204-5423
Field Operations
Tom Burgett– Director(Northeast)
860-763-6027
Cell – 713-829-2919
John Pannel – Director (Central)
615-221-1511
Cell – 615-714-1930
Cy Harper – Director (South)
281-689-4534
Cell – 205-613-6701
Tom Dender – VP
713-420-3833
Cell – 205-572-1549
Ken Grubb –COO GAS Pipelines
713-369-8763
Cell – 713-702-1210
Updated September 2017