Upload
finance49
View
124
Download
0
Tags:
Embed Size (px)
Citation preview
James J. ClearyPresident, El Paso Western Pipelines
AGA Financial ForumScottsdale, ArizonaMay 8, 2006
2
Cautionary Statement Regarding Forward-looking Statements
This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, including, without limitation, our ability to successfully contract, build and operate the pipeline projects described in this presentation; changes in supply of natural gas; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition, and other factors described in the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
3
Agenda
► Pipeline Group Overview
► Regional Supply and Market Trends
► Growth Outlook
► El Paso Western Pipelines Update
4
El Paso’s Natural Gas Pipelines
TennesseeGas Pipeline
Elba Island LNG
SouthernNatural Gas
ANR Pipeline
Great Lakes GasTransmission (50%)
ColoradoInterstate Gas
Wyoming Interstate
El PasoNatural Gas
MojavePipeline
Mexico Ventures
Cheyenne Plains Pipeline
CypressPipeline
Florida GasTransmission (50%)
►26% total U.S. interstate pipeline mileage
►36 Bcf/d capacity (25% of total U.S.)
►Best market connectivity
►Best supply access
►Leading pipeline integrity program
5
El Paso Western Pipelines
ColoradoInterstate Gas
4,000 miles; 3 Bcf/d
Wyoming Interstate600 miles; 2 Bcf/d
Cheyenne Plains Pipeline
380 miles; 0.8 Bcf/d
El PasoNatural Gas
10,600 miles; 6 Bcf/d
MojavePipeline
400 miles;0.4 Bcf/d
6
Rockies Supply vs.Regional Export Capacity
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
100% LF
85% LF
Supply Available for Export
MMcf/d
90% LF
Expansion needed:
► 2011 if 85% LF► 2012 if 90% LF► 2015 if 100% LF
Cheyenne Plains560 expansion
Cheyenne Plains170 expansion
Rockies Express1,800 expansion
7
Arizona Gas Demand andPopulation Trends
0
100
200
300
400
500
600
700
800
900
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Compound AnnualGrowth RatesPopulation:2000–2004: 2.69%2005–2010: 2.49%2000–2010: 2.54%
Total Gas Demand:2000–2004: 11.39%2005–2010: 1.40%2000–2010: 5.45%
18.64%5.43%
10.46%11.44% 2.95% 2.66% 0.49% 0.12% 2.94%
0.83%Year to
Year Gas Growth
Residential/Commercial/Industrial Electric Power Arizona Population
Po
pu
lation
(1,000’s)M
Mcf
/d
8
California Gas Demand andPopulation Trends
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201020,000
25,000
30,000
35,000
40,000
45,000
50,000
(1.23)%(7.48)%
(2.34)%6.99% (1.99)%
4.64% (0.09)% 2.81% 2.46% 1.87%
Year to Year Gas Growth
Residential/Commercial/Industrial Electric Power California Population
Po
pu
lation
(1,000’s)M
Mcf
/d
Compound AnnualGrowth RatesPopulation:2000–2004: 1.52%2005–2010: 1.10%2000–2010: 1.17%
Total Gas Demand:2000–2004: (1.15)%2005–2010: 2.33 %2000–2010: 0.49 %
9
California Natural Gas Demand 2004
Source: California Energy Commission
California Gas Demand byCore vs. Noncore
Source: California Gas Report - 2005 Supplement
California Gas Demand
ElectricGeneration
47%
Industrial20% Commercial
10%
Residential23% Noncore
68%Core32%
10
WECC Regional Breakout ofInstalled Gas Fired MW Capacity
0
5,000
10,000
15,000
20,000
25,000
30,000
SouthernCalifornia
NorthernCalifornia
Arizona PacificNorthwest
Southern Nevada MountainNorthwest
Colorado / SEWyoming
New Mexico / ElPaso Area
Incremental Gas Demand 1,680 MDth/d
980 MDth/d
1,700 MDth/d
760 MDth/d 750
MDth/d260
MDth/d
Pre-1999 Capacity Capacity Additions since 1999
Inst
alle
d M
W C
apac
ity
Since 1999:Added 6,130 MDth/d of
potential new gas demand in Western Pipeline markets
High Connectivity withSupply and Markets
MarketsSupplyCOUT
NV
CA NM
MEX.
221 Southwest Gas43 Citizens (UNS)12 APS8 SRP
61 Other
345 Arizona Delivery Points~200 Supply Receipt Points
11
12
Western Pipeline Growth Projects
Cheyenne Plains Phase I & II
$385 MMDecember 2005
755 MMcf/d
Completed or under constructionSigned PA’sFuture Projects
EPNG Sonora Lateral$91 MM2009/10
800 MMcf/d
EPNG Line 1903$74 MM
December 2005502 MMcf/d
WIC Piceance Pipeline$132 MM
March 2006333 MMcf/d
WIC Kanda LateralUp to $137 MMJanuary 2008
Up to 333 MMcf/d
CPG Yuma Lateral$22 MM
October 200649 MMcf/d
EPNG Arizona Storage$105 MM2009/10
350 MMcf/d CIG Raton Basin Expansions
$91 MM2005–2008170 MMcf/d
Front RangeMarket Delivery Infrastructure
$148 MM2008/2009
WIC/CP Opal to Cheyenne or Greensburg$39–$67 MMJanuary 2008125 Mdth/d
13
Continental Connector Project► Secured significant
commitment from Chesapeake Energy
► Binding open season runs through May 19
► Began NEPA pre-filing process
► Expected design: 1 Bcf/d with 1Q 2008 in-service
14
Western Pipelines Update
► Favorable orders on EPNG restructuring and rate caps
– Largely approved proposed new services
– Clarified limits on applicability of 1996 rate settlement
► Customer settlement negotiations ongoing inEPNG rate case
► Extended effectiveness of new CIG rate case until January 2007
– Settlement negotiations ongoing
15
El Paso Western Pipelines: Conclusions
► Excellent supply access
► Serving growing markets
► High degree of connectivity
► Well positioned for growth
► Making good progress on rate cases and service restructuring
James J. ClearyPresident, El Paso Western Pipelines
AGA Financial ForumScottsdale, ArizonaMay 8, 2006