Agency on Bay Management Gulfstream Phase IV Expansion
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1 Agency on Bay Management Gulfstream Phase IV Expansion July 13, 2006 Al Taylor Vice President, Operations 1
2 Company Overview - Introduction Placed into service in May 2002, Gulfstream is a stateof-the-art interstate natural gas transmission system owned 50% by Duke Energy and 50% by Williams The Company is under the joint management of Duke Energy, which provides the business functions, and Williams, which provides the technical functions Gulfstream was specifically designed to serve peninsula Florida (1.1 Bcfd) The Pipeline consists of 692 total miles: onshore in Florida (242 miles), Alabama and Mississippi (15 miles) and offshore in the Gulf of Mexico (435 miles) Compression consists of three Rolls Royce compressors, one of which serves solely as back up (113,700 total horsepower) located in Coden, AL
3 Company Overview: Map of Operations
4 Market Overview: Strong population growth and natural gas demand Florida s population is growing 2% annually Electric demand is growing 3% annually Natural gas continues as fuel of choice for new generation in the near term Central and Southern Florida accounts for most of the load growth the market Gulfstream was designed to serve Population and power generation growth in Gulfstream s market is expected to drive increased demand for natural gas
5 Recent History Ê 2005 Phase II placed in service: February 2, 2005 Increased delivery points from 17 to 19 Contracted long-term firm transportation service, increased to 753,000 Dth/d Ê 2006 Phase III with FP&L announced March 2006 Phase IV with Progress Energy announced May 31, 2006 Contracted long-term firm transportation service increases to 1,253,000 Dth/d
6 Market Projects Phase III: Florida Power & Light Ê Ê The project will sell out Gulfstream s initial mainline capacity Project summary: 35 mile, 30 diameter pipeline extension to FP&L s new greenfield 2200 MW West County Energy Center in west Palm Beach County Completion of facilities in 2008 Phase IV: Progress Energy Ê Ê Project expands mainline capacity to 1,253,000 Dth/d Project summary: 18 miles; 20 diameter pipeline extension to Progress Energy s repowered Bartow power plant in Pinellas County 45,000 h.p. compression addition to existing Gulfstream sites near Coden, Alabama, and in Manatee County, Florida Completion of facilities in
7 Gulfstream Market Area
8 Company Overview: Summer Operations 2004 & 2005 Gulfstream experienced seven storms directly impacting its market area and/or making landfall near Coden, Alabama Ê Ê Ê Bonnie, Arlene and Dennis crossed our offshore pipeline Charlie, Frances, and Jeanne crossed our market system Ivan made landfall near Mobile Bay and our compressor operations Gulfstream s pipeline facilities sustained no material damage Required surveys indicate offshore pipeline has not moved Post 2004 Gulfstream purchased & installed additional emergency generation at key communication points Gulfstream s electric generation at Coden, AL and Gas Treating Facilities were critical components of reliable service June 1, 2006 fuel retention reduced from 1.53% to 1.34%
9 Operations Safety 24-hour monitoring Hydro test to 150% of MAOP Integrity Management Plan Remote control of critical system valves Patrols by air & ground Coordination with ER officials Participation in Florida One Call No Lost Time Accidents since Commissioning
10 Phase IV Overview Progress Energy Bartow Plant Tampa Bay Proposed 20 Lateral Existing Gulfstream 36 Natural Gas Pipeline
11 Preferred and Alternative Routes Miles
12 Field Surveys - Conducted To Date Miles
13 Field Surveys - Findings To Date Miles
14 Field Surveys - Findings To Date 0 2,000 Feet
15 Route Variations Miles
16 Field Surveys - Pending To Date Miles
17 Preliminary Construction Plan Interconnect Hot tap to pipeline Miles
18 Preliminary Construction Plan HDD installation Channel Crossings Drilling support barge Channel Transition pipe ditch Enlarged exit pit Pipe pre-laid on bottom Direction of pull Dredged Entrance Pit Drill string Drilling support barges Not to scale
19 Preliminary Construction Plan HDD installation Shoreline Crossing Drilling rig exit site limits Shoreline Pipeline Water Direction of pull Dredged entrance pit Drill string R.O.W. limit Drilling support barges Not to scale
20 Preliminary Construction Plan Pre-Pipelay Dredging R.O.W. limit Not to scale Dredge barge Direction of Travel Pipe Spuds Spoil Spoil R.O.W. limit Pipe trench Note: Spoil mounds will alternate sides of the trench as necessary to prevent currents from re-filling trench
21 Preliminary Construction Plan Conventional Pipe lay (Shallow Water) Spuds for Station Keeping R.O.W. limit Not to scale Tug Boat Pipeline R.O.W. limit Spoil (Side Cast to Either Side) Dredged Trench
22 Tampa Bay Ship Channel Channel Profile Cut C ,000 feet
23 Gulfstream Phase IV Schedule
24 Contact Information Gulfstream Natural Gas System, L.L.C.: Al Taylor, Vice President Operations, , GAS-4-FLA FERC Certificate Process: FERC pre-filing Docket No. PF Office of External Affairs, for-citizens/my-rights/ process.asp
25
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