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Connections for America’s Energy ™
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™ Connections for America’s Energy ™
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Crestwood Midstream Partners LP
Tracy Halleck – Director, Northeast Marketing
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• Current Crestwood Asset Overview
• Competition correlation with many industries.
•Market Flows and Liquidity
•New Crestwood Projects
AGENDA
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Crestwood NE Natural Gas Storage & Transport Assets
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Stagecoach MSQ: 21.4 Bcf
MDWQ: 500 mmcf/d MDIQ: 250 mmcf/d
Seneca Lake MSQ: 1.45 Bcf
MDWQ: 145 mmcf/d MDIQ: 80 mmcf/d
Thomas Corners MSQ: 5.7 Bcf
MDWQ: 140 mmcf/d MDIQ : 70 mmcf/d
Steuben MSQ: 6.2 Bcf
MDWQ: 60 mmcf/d MDIQ : 30 mmcf/d
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CNYOG Asset Configuration
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TGP 3 Bcfd
Transco 1.6 Bcfd
Millennium 0.75 Bcfd +
Stagecoach Storage
Angelina Receipts
Stagecoach Junction Receipts
TGP Receipt/Delivery
Cherry Road Receipts
Transco Receipt/Delivery
North Lateral, 20”
South Lateral, 30”
MARC I, 30”
Millennium Receipt/Delivery Location Receipt Capacity
Delivery Capacity
Millennium 750 640
Stagecoach Storage
500 250
Angelina Gathering
480 n/a
Stagecoach Junction
400 n/a
TGP 1,130 1,130
Cherry Road 575 n/a
Transco 776 670
*Units in mmcf/d
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Arlington Asset Map
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1.45 bcf facility
5.7 bcf facility
6.2 bcf facility
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• Have you ever noticed two seemingly identical movies being released at the same time and wondered why Hollywood studios would do such a thing? While you may have first chalked it up to mere coincidence, a few Hollywood insiders suggests otherwise. Are we competitive in the Natural Gas industry?
• Some Hollywood blog writers have found that competing studios often own similar movie scripts and if one studio gets wind that another is making a movie that is similar to a script they own they may try to make it and put it out earlier or around the same time. Hmm Correlation to pipeline companies?
• A secondary reason could be the benefits of shared marketing and buzz, especially if “Studio B” has a smaller budget. Interestingly, this could be why studios prefer to buy exclusive rights to comics and graphic novels, so other studios can’t replicate the storyline. Right-of-way a problem?
• “Twin Movies” have been released as far back as 1964 starting with Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb (1964) and Fail-Safe (1964). Penn East vs Diamond East? Northeast Direct vs Access Northeast?
FUN FACT – Competition in the Motion Picture Industry
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Both released in 1986
TOP GUN and IRON EAGLE
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Both released in 1989
TURNER & HOOCH and K9
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Late 1998 Early 1999
THE TRUMAN SHOW and EDTV
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Both released in 1998
ARMAGEDDON and DEEP IMPACT
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Early 2004 Late 2003
SHARK TALE and FINDING NEMO
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Both released in 2009
OBSERVE & REPORT and MALL COP
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Both released in 2013
OLYMPUS HAS FALLEN and WHITE HOUSE DOWN
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LNG Exports
Pricing flexibility will emerge to gain demand customers load while transportation, storage and supply proximity help LNG costs stay lower. The early bird gets the worm on these projects.
1. Corpus Christi, TX: 2.1 Bcfd (Cheniere – Corpus Christi LNG) 2. Lake Charles, LA: 2.2 Bcfd (Southern Union – BG/Trunkline LNG) 3. Cove Point, MD: 0.82 Bcfd (Dominion – Cove Point LNG) Approved 4. Lavaca Bay, TX: 1.38 Bcfd (Excelerate Liquefaction) 5. Elba Island, GA: 0.35 Bcfd (Southern LNG Company) 6. Sabine Pass, LA: 1.40 Bcfd (Sabine Pass Liquefaction) 7. Lake Charles, LA: 1.07 Bcfd (Magnolia LNG) 8. Plaquemines Parish, LA: 1.07 Bcfd (CE FLNG) 9. Sabine Pass, TX: 2.1 Bcfd (ExxonMobil – Golden Pass) 10. Pascagoula, MS: 1.5 Bcfd (Gulf LNG Liquefaction) 11. Plaquemines Parish, LA: 0.30 Bcfd (Louisiana LNG) 12. Freepoint , TX: 1.8 Bcfd (Dow – Osaka Gas) Approved
Competition is alive and well in the natural gas industry
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NE Natural Gas Production
Natural gas production has remained at an all time high over the last few months with a little over 8 BCF in the NE and over 17 BCF in the US overall.
Competition is alive and well in the natural gas industry
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NE Pipeline Projects Competing northeast pipeline expansion projects are nothing new. Just like with “Twin Movies” its not uncommon to have similar projects proposed at the same time. The “not in my backyard” philosophy works to create liquidity for potential shippers, gathering systems and producers with ties to the projects, and markets with load obligations at the burner tip.
Competition is alive and well in the natural gas industry
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• North-South Expansion
• Marc I Expansion
• Marc II Expansion
• Seneca Lake Expansion – Gallery II
Crestwood Business Development
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Edmund Knolle
VP Business Development, Natural Gas Business Unit
Crestwood Equity Partners LP
Crestwood Midstream Partners LP
700 Louisiana Street, Suite 2550 Houston, TX 77002
P: 832-519-2282 C: 713-818-2195 edmund.knolle@crestwoodlp.com
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North-South Expansion
1. “Northeast Pennsylvania Connector” (NS-1 compressor station expansion) – increases Millennium delivery capacity by 110 MMcfd
o Anticipated in-service date of Dec-2014
o Precedent agreements executed under new rate schedule FTS-2 (point-to-point)
o Working with Millennium to increase our interconnect to 850 MMcfd
2. Evaluating additional new gathering lateral and additional receipt points to accommodate growing Susquehanna production
3. North Lateral loop – evaluating looping of North Lateral (20”) to accommodate further producer interest in deliveries into Millennium Pipeline
CNYOG Expansions
NS-1 Compressor Sta. NS Lateral/Millennium
Interconnect
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MARC I Expansion
1. Shipper interest in new MARC I receipt point at Wilmot to accommodate growing production on Access system
2. Crestwood evaluating related expansion of Transco meter up to 1.1 Bcfd (additional 380 MMcfd)
3. Blanket authority project – initial in-service date as early as July 2015, ramping up through the end of 2015.
4. Incremental MARC I FT will be provided under rate schedule FTS-2.
CNYOG Expansions (cont.)
MARC I/Transco Meter
Wilmot Receipt Pt.
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CNYOG MARC II Pipeline, 30 mi.
(proposed)
PennEast Pipeline, 105 mi (proposed)
CNYOG Expansions (cont.)
24”
30”
30”
MARC II Expansion –Non Binding Open Season
• Opportunity:
– To provide firm baseload supply to 1 Bcfd of end-user demand on the proposed PennEast Pipeline
– CNYOG currently moves 1.5 Bcfd of natural gas per day
– CNYOG supply volumes expected to increase to 2.5 Bcf per day by 2017-18
• FERC 7c Project
– In-service late 2017
• Base case project design: 1.0 Bcfd
– Receipt Points: All CNYOG points
– Delivery Points: PennEast and Transco in Luzerne Co., PA
• Indicative rates
– Discounted reservation rate subject to volume, final capital estimates & outcome of capex risk sharing w/ shippers
– Recourse commodity rates, power, fuel use, and loss
• 10 year minimum primary contract term
CNYOG MARC I Pipeline
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• New Firm Rate Schedule FTS-2 (CNYOG)
– FTS-2 is a traditional point-to-point service on North Lateral, South Lateral and MARC I facilities
– FTS-2 point-to-point service will allow us to increase system utilization and efficiency
– FERC approved July 28, 2014
– Scheduling priority for firm service nominations:
1. Nominations from a primary Point of Receipt to a primary Point of Delivery
2. Nominations using secondary Points in the direction of flow and overlapping the Primary Path
3. All other firm services using a secondary Point of Delivery and/or Receipt
o FTS-2 out-of-path nominations must be within the service’s rate zone (NS or MARC I)
New Service
Presentation Title
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Seneca Lake Storage Expansion:
• Seneca Lake Storage, Gallery II
• Certificate issued for Seneca Lake Gallery II expansion (0.55 Bcf of high-deliverability, multi-cycle storage)
• Non-binding open season
Winter 2014
Arlington Storage Expansions
Seneca Lake Working Gas: 1.5 Bcf
Certificated expansion: 0.55 Bcf Connections with Dominion and
Millennium
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Tracy Halleck
Director, Northeast Marketing
Crestwood Midstream Partners LP
700 Louisiana Street, Suite 2550
Houston, TX 77002
P: 713-380-3024 C: 281-352-6280
AIM: tracyhalleck
tracy.halleck@crestwoodlp.com
www.crestwoodlp.com
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THANKS SO MUCH FOR YOUR TIME I’m here until Thursday, try the Veal!!
Wes Deskin
Director, NE Asset Optimization
Crestwood Midstream Partners LP
700 Louisiana Street, Suite 2550
Houston, TX 77002
P: 832-519-2252 C: 832-594-4406
AIM & Email:
Wes.deskin@crestwoodlp.com
www.crestwoodlp.com
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