Business Developement Presentation by xds18611

VIEWS: 11 PAGES: 17

More Info
									        Alliance Pipeline
      Business Development

   Alliance Shipper Task Force Meeting
             November 9, 2005

              Jim Goldmann
Vice President, Transportation Services and
                Development




                                              Slide 1
Agenda
!   Purpose of Meeting

!   Mainline Expansion

!   B.C. Expansion

!   Canadian Short Haul Service




Alliance Shipper Task Force - Privileged and Confidential   Slide 2
Purpose of Meeting

!   Growth Strategy

!   Customer feedback

!   Maximizing current assets

!   Market Interest Survey




Alliance Shipper Task Force - Privileged and Confidential   Slide 3
Mainline Expansion

!   Alliance is continually analyzing expansion projects

!   Shippers have asked Alliance to provide an update
    on expansion plans

!   Widening differentials have heightened interest in
    mainline expansion

!   Technology advances continue to provide greater
    opportunities




Alliance Shipper Task Force - Privileged and Confidential   Slide 4
“Bookends” of Mainline Expansion
Capability
120 MMcfd Expansion Details
!   Approximately US$200 MM capital required on
    compression facilities
!   Cost of Service analysis at this incremental volume
    approximate the effective unit cost of transportation
    equivalent to (or slightly below) the 2006 rate
!   Facilities in the gathering and delivery segments of the
    pipeline are likely not required




Alliance Shipper Task Force - Privileged and Confidential   Slide 5
“Bookends” of Mainline Expansion
Capability (cont’d)
700 MMcfd Expansion Details
!   Approximately US$520 MM capital required on
    compression facilities
!   Cost of Service analysis at this incremental volume
    approximate the effective unit cost of transportation
    equivalent to (or slightly below) the 2006 rate
!   Facilities would be required in the gathering and
    delivery segments and would offer opportunities to
    combine other projects such as new Alberta or B.C.
    supply


Alliance Shipper Task Force - Privileged and Confidential   Slide 6
B.C. Expansion

!   Increased exploration and development in B.C.

!   Recent market differentials support eastward flow

!   Shipper interest for increased Primary Receipt Point
    Designations

!   Alliance B.C. system is approaching capacity –
    institution of new constraint point on Taylor Lateral




Alliance Shipper Task Force - Privileged and Confidential   Slide 7
B.C. Flow Trends Over Past Gas Year




Alliance Shipper Task Force - Privileged and Confidential   Slide 8
  Alliance Pipeline Current B.C. System
      North B.C.
     Receipt Points
      Highway BC01
                           1
   Highway 2 BC01A        1A      2-1
                                    2A
 Aitken Creek BC02-1
                                                                        Boundary Lake
Aitken Creek 2 BC02A                                                   Lateral DEGT TBO

                                  TAC Surcharge                             Boundary Lake South AB07
                                                      IOL AB06         7
                                      Zone
 BRITISH COLUMBIA                                              6

               South B.C.                                  5       Boundary Lake AB05
              Receipt Points
                                             3
               McMahon BC03                       4
                 Younger BC04
   Legend
      TAC Surcharge Zone Receipt Point                                     Blueberry Hill C/S

      Boundary Lake Lateral TBO
      Receipt Points
                                                                           ALBERTA
Alliance Shipper Task Force - Privileged and Confidential                                       Slide 9
Required Facility – Fort St. John C/S
                                                      Fort St. John C/S
                                                      " Located at the valve site
    1                                                 junction where the NPS 20 Aitken
          2-1
   1A
            2A                                        Creek, NPS 20 Taylor and NPS 24
                                                      Fort St. John Lateral connect

                                                  "Capital investment could likely
        NP ree
          C
          S kL




                                              7
                                                  be supported by incremental
            20 a
               Ai tera




                                        6         Taylor Aitken Creek Surcharge
                 tk l
                   en




                                                  volumes ($0.04/Mcf*)
                                      5
                                      NPS
                                                   * estimate only – does not include new
                                          24
                         3            John Fort St.laterals or meter stations
                             4             Late             Blue
                    NP S 2                     r al                berr
                 Taylo     0                                            y   Hill
                      r Late                                                       C/S
                               r al




Alliance Shipper Task Force - Privileged and Confidential                                Slide 10
B.C. Expansion Scenarios




                                                                 rea       nts
                                                             cy A eipt Poi
                                                         alen      c
                                                    Equiv B.C. Re
                                               ulic      h
                                          Hydra nd Sout pacity”
                                               ha         Ca
                                        en Nort ombined
                                   Betwe      “C




Alliance Shipper Task Force - Privileged and Confidential                        Slide 11
Canadian Short Haul Service (CSHS)

!   Interest has been expressed for Short Haul service to
    Edmonton area

!   Modest capital investment is required

!   Provides marketing options




Alliance Shipper Task Force - Privileged and Confidential   Slide 12
   Existing Alberta Alliance Pipeline
   Facilities*
   !   Closest Alliance facility in the Edmonton area is the
       Fort Saskatchewan Lateral
                Po ure e
                        n
         c e r es e l i

                      s
       Re w P Pip

                  int
                   s
        Lo nce




                             47
            ipt
           lia




                                    Sangudo         Fort Saskatchewan
        Al




                                   Future Site    Lateral & Receipt Points
                       Windfall 48                       52 53 55
                      Compressor 49

                                              Morinville           Mundare
                                             Compressor City of   Future Site        54
                                                         Edmonton
                                                                                Irma
*Schematic does not represent all Alberta facilities, just                   Compressor
those relevant to the prospective Canadian Short Haul Service


   Alliance Shipper Task Force - Privileged and Confidential                              Slide 13
CSHS Expansion Options – With
Existing Facilities
Option 1 - Run the standby compressor at Windfall
    #No new capital investment, incremental fuel rate
      dependent upon volumes
    #Capacity up to approx. 100 MMcfd



Option 2 – Technology upgrades
    #Scheduled at the first required overhaul for the units
    #Low capital investment, incremental fuel rate dependent
      upon volumes
    #Capacity up to approx. 150 MMcfd
Alliance Shipper Task Force - Privileged and Confidential     Slide 14
CSHS Expansion Options – Add New
Facilities
Option 3 – Install new unit at Sangudo C/S (future site)
    #Capital investment and incremental fuel rate will vary
      based on delivery volumes
    #Capacity up to approx. 300 MMcfd

Volumes > 300 MMcfd
    #Possible scenarios, require further analysis to study
      entire pipeline upstream of the Irma Compressor Station




Alliance Shipper Task Force - Privileged and Confidential     Slide 15
Next Steps
 !   Market Interest Survey– to be e-mailed to shippers
     shortly
      ! Requested        response by November 28th, 2005
 !   Incorporate responses to develop projects in greater
     detail
      ! Shipper      meetings for feedback
      ! Shipper      Task Force meeting and discussion
 !   Expression of Shipper Interest
 !   Refine project(s) scope and business model
 !   Negotiate commercial arrangements

Alliance Shipper Task Force - Privileged and Confidential   Slide 16

								
To top