New Brunswick Energy Commission January 14, 2011

Transcription

1 New Brunswick Energy Commission January 14, 2011 Mike Whalen GM, Business Development, Marketing & Regulatory Affairs Maritimes & Northeast Pipeline Steve Rankin Director, External Relations Maritimes & Northeast Pipeline

2 Maritimes & Northeast Pipeline Quebec Critical energy infrastructure for the Northeast seaboard. Quebec City Maine New Brunswick Fredericton Moncton Prince Edward Island Head office in Halifax, Canadian Operations based in Fredericton. A joint venture, Spectra (77.53%), Emera (12.92%) and ExxonMobil (9.55%). VT NH MA Portland Boston Bangor Saint John Nova Scotia Halifax Goldboro Maritimes & Northeast Pipeline Compressor Station Interconnecting Pipelines: Corridor McCully Pipeline Brunswick Pipeline Portland Natural Gas Tennessee Gas Transmission Algonquin Gas Transmission Eleven years of safe, reliable, flexible transportation service. Provides access to premium markets in Eastern Canada and US Northeast. Customers are producers, large industry, refiners, power market & local distribution companies. Established and expandable footprint to serve existing and future energy supply projects in Atlantic Canada. 2

3 History of System Development Mainline and lateral development ( ) Market development ( ) Supply diversification ( ) Key Points Arising from History LDC and issue of direct service to customers Active support of local gas market development facilitated by laterals Supply more diverse more reliability, more customer options 3

4 Market Built Within M&NP Footprint LDC Delivery Point Power Plant Industrial Customer Quebec Quebec City Maine Natural - Bowdon VT Casco Bay Bangor Gas - Bucksport EGNB St. Stephen Bangor Gas - Veazie EGNB Fredericton EGNB Moncton EGNB Sackville Amherst Heritage Gas EGNB St. George J.D. Irving Federal Gypsum Northern Utilities - Lewiston Granite State NH Maine Natural Granite State - Eliot Public Service of NH Granite State - Newington EGNB Saint John (4) Irving Oil J.D. Irving Bayside Power J.D. Irving Newpage Halifax SOEP Thornhill Heritage Gas Halifax Airport Heritage Gas Halifax Peninsula Heritage Gas Nova Scotia Power MA National Grid Haverhill Newington Energy / ConEd G-P Gypsum

5 Current Business Environment M&N Canada supply-constrained available capacity very cost effective expansion capacity available M&N US fully contracted (at capacity) next expansion at incremental cost Current firm contract level exceeds gas supply on M&N Canada Backstop Agreement Spectra involvement in Brunswick Pipeline 5

6 Future Natural Gas Supply Offshore Deep Panuke Significant discovery licenses Sable Newfoundland Onshore Storage Conventional Shale gas LNG / CNG 6

7 Potential Onshore Supply Development New Brunswick Saint John Moncton Prince Edward Island Goldboro License Holder: Triangle Petroleum Forent Energy Stealth Ventures Contact Exploration Corridor Resources PetroWorth Resources Alton Natural Gas Storage (proposed) Salt Springs Natural Gas Storage (proposed) Nova Scotia Halifax Resource Type: Shale Gas Coal Bed Methane Conventional

8 Future Natural Gas Supply Maritimes & Northeast Pipeline Corridor Resources Southwestern Energy 8

9 Supply Potential Beyond 2010 Newfoundland Quebec New Brunswick Prince Edward Island St. John s Maine Goldboro VT NH Nova Scotia Halifax NY MA Boston Offshore Onshore LNG Storage Maritimes & Northeast Pipeline Compressor Station Brunswick Pipeline Canaport LNG TM Algonquin Gas Transmission

10 Current Business Issues Supply constrained pipeline Reserves test failed Escrow provision triggered earnings frozen Future direct service / position on single end-use franchise 10

11 Conclusions Pipeline transmission system working well Supply shale gas is an important factor in New Brunswick and Nova Scotia Natural gas demand growth Climate change / benefits Power generation LDC growth Spectra Energy engaged pipeline company and New Brunswick energy stakeholder 11