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MIDSTREAM METHODS: TRANSPORTATION & INFRASTRUCTURE
SCOTT HALLAM, MANAGER DEVELOPMENT AND OPERATIONS
TOPICS
About Access & the Midstream Industry Utica Shale Bridging the Gap Through Partnerships Financial Impacts Supply Chain and Service Providers
ABOUT ACCESS
ABOUT THE MIDSTREAM INDUSTRY A midstream business gathers, processes
and transports natural gas and natural gas liquids (NGLs) from the wellhead to the companies that market the gas and NGLs to the public.
This process includes: • Gathering • Compression • Dehydration • Conditioning
Gas treating (CO2/H2S removal) Gas processing (NGL separation)
• Fractionation
WHY THE UTICA SHALE?
Image courtesy of the USGS
PRODUCERS TAKE NOTICE
“You can bring [gas and oil] out of the ground, but it doesn’t do you any good until you can move it and get it processed and get it where it’s needed … Midstream is the key.”
Terry Fleming, executive director,
Ohio Petroleum Council (Akron Beacon Journal, 12/8/12)
CHALLENGES
Lack of infrastructure • Processing plants • Pipeline • Compression facilities
Rich gas Securing pipeline right-
of-way
BRIDGING THE GAP THROUGH PARTNERSHIPS • CARDINAL GAS SERVICES (CGS) • UTICA EAST OHIO (UEO) • UTICA GAS SERVICES (UGS)
Services Gathering, Compression, Dehydration
Gas Gathering Systems
5
Miles of Pipeline
71 (114 miles under
construction)
Gas Gathered
92 million cubic feet per day (MMcf/d)
Ownership Access: 66%, Operator
TOTAL: 25% EnerVest: 9%
Mission • Develop the gathering assets necessary to
transport and condition gas for downstream processing markets
Market • DTI Hastings Processing Plant • DTI Natrium Processing Plant • Williams Ft. Beeler Processing Plant • Mark West Harrison Processing Plant • UEO Cryogenic and Fractionation Plants
Plan • 625 miles of gathering pipeline infrastructure • Eight (8) compressor stations • Liquid handling facility (large-scale stabilization
facility) • Design throughput: 1.3 billion cubic feet (Bcf) of
natural gas
ACCESS IN THE UTICA – GATHERING
ACCESS IN THE UTICA – COMPRESSION
A compressor is a mechanical device used to increase the pressure of the gas.
Access is currently constructing four Compression Facilities in Ohio: • Augusta CF • Archer CF • Kilgore CF • Scio CF
ACCESS IN THE UTICA – PROCESSING
Current Status Under Construction
Processing Plants
800 MMcf/d
Fractionation 135,000 Bbl/d (C2+)
NGL Storage 870,000 Bbls Propane: 450,000 Bbls Butane: 300,000 Bbls
Natural Gasoline: 120,000 Bbls
Delivery Points 2 Residue Gas delivery points 2 NGL delivery points
Ownership Access: 49% Momentum: 30%
EnerVest: 21%
Services Gathering, Compression, Dehydration
Gas Gathering Systems
3
Miles of Pipeline
8
Gas Gathered
10 MMcf/d
Ownership 100% Access owned and operated
Mission • Provide gathering services for the dry gas and
oil window outside of the Cardinal Gas Services dedication area. Also, operator of Cardinal Gas Services’ assets and the UEO 24” spine.
Market • DTI TL-400 • DEO TPL 5 • DEO dry gas gathering systems
Plan • 368 miles of gathering pipeline infrastructure • Six (6) compressor stations • Design throughput: 1.1 Bcf/d natural gas
ACCESS IN THE UTICA – GATHERING
ENTITY INTERACTION
Well
Well
Well
Comp
Well
Well
Well
Comp Processing
Fractionation
> Interstate Pipeline > Burner Tip
> Interstate Pipeline > Burner Tip
> Pure Product
Cardinal Gas Service Utica East Ohio
PARTNERSHIPS IN ACTION
PARTNERSHIPS IN ACTION
PARTNERSHIP BENEFITS Magnitude of acreage position requires focused midstream effort
• Large-scale design and long-term view • Capture economies of scale
Producer partner and midstream partner work together to reduce the development “lag” • Build assets for “just-in-time” service
Project gains first mover advantage
Volume aggregation drives development of downstream infrastructure • Residue/NGL takeaway • Marketing leverage
Future customers benefit • Timeline • Infrastructure scale and capabilities
PARTNERSHIP CHALLENGES Midstream companies and producers
must have alignment Producer wears two hats Confidentiality Producers are actively acquiring acreage Producers are utilizing proprietary
completion techniques
FINANCIAL IMPACTS
THE UTICA’S FINANCIAL IMPACT
Capital: • Access’ planned investment, through its
partnerships, is more than $1.8 billion over the next five years
Jobs: • Currently, the estimated number of local
jobs created for Ohioans in the Utica is 636 • Today, more than half of the Access
Midstream employees in the Utica are Ohio residents
• Of the 128 employees in our Canton office, 74 are on the Ohio tax rolls
• Of the 636 contractors working on our projects, half are union and half are open shops
PUTTING THE PIECES TOGETHER SUPPLY CHAIN & SERVICE PROVIDERS
WHAT IS SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN What we look at for materials and service providers: • Materials: specifications, lead time • Services: qualifications, environment health & safety (EHS) performance,
capacity, past performance, pricing
Competitive bidding process: • Firm, fixed price • Unit-based price • Bidders’ qualifications, EHS performance/record, capacity and past
performance are also evaluated
Vendors can be: • Local • Regional • National
ACMP VENDOR CONTACT LINE: 877-413-1023, OR [email protected]
TYPES OF SERVICE PROVIDERS Inspectors Biologists Right-of-Way (ROW) brokers Operators Laborers Engineers Arborists Mechanics Surveyors Chemists
Construction specialists
ACMP VENDOR CONTACT LINE: 877-413-1023, OR [email protected]
WHO ACCESS IS WORKING WITH
Today, Access is working with the following local service providers: • Hilscher Clark • Bill Hawk • Welded Construction • Acuren Inspection • Mid-Ohio Pipeline • Integrity Kokosing • Beaver Construction • Hodge Construction • Grae-Con • HPE Fabrication • Canton Erectors
ACMP VENDOR CONTACT LINE: 877-413-1023, OR [email protected]
QUESTIONS? SCOTT HALLAM, MANAGER, DEVELOPMENT AND OPERATIONS– UTICA ACCESS MIDSTREAM
