crestwood midstream partners lp - millennium pipeline · connections for america’s energy ™ ™...

Connections for America’s Energy ™

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™ Connections for America’s Energy ™

™ Connections for America’s Energy

Crestwood Midstream Partners LP

Tracy Halleck – Director, Northeast Marketing


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• Current Crestwood Asset Overview

• Competition correlation with many industries.

•Market Flows and Liquidity

•New Crestwood Projects

AGENDA

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Crestwood NE Natural Gas Storage & Transport Assets

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Stagecoach MSQ: 21.4 Bcf

MDWQ: 500 mmcf/d MDIQ: 250 mmcf/d

Seneca Lake MSQ: 1.45 Bcf

MDWQ: 145 mmcf/d MDIQ: 80 mmcf/d

Thomas Corners MSQ: 5.7 Bcf

MDWQ: 140 mmcf/d MDIQ : 70 mmcf/d

Steuben MSQ: 6.2 Bcf

MDWQ: 60 mmcf/d MDIQ : 30 mmcf/d


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CNYOG Asset Configuration

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TGP 3 Bcfd

Transco 1.6 Bcfd

Millennium 0.75 Bcfd +

Stagecoach Storage

Angelina Receipts

Stagecoach Junction Receipts

TGP Receipt/Delivery

Cherry Road Receipts

Transco Receipt/Delivery

North Lateral, 20”

South Lateral, 30”

MARC I, 30”

Millennium Receipt/Delivery Location Receipt Capacity

Delivery Capacity

Millennium 750 640

Stagecoach Storage

500 250

Angelina Gathering

480 n/a

Stagecoach Junction

400 n/a

TGP 1,130 1,130

Cherry Road 575 n/a

Transco 776 670

*Units in mmcf/d


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Arlington Asset Map

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1.45 bcf facility

5.7 bcf facility

6.2 bcf facility


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• Have you ever noticed two seemingly identical movies being released at the same time and wondered why Hollywood studios would do such a thing? While you may have first chalked it up to mere coincidence, a few Hollywood insiders suggests otherwise. Are we competitive in the Natural Gas industry?

• Some Hollywood blog writers have found that competing studios often own similar movie scripts and if one studio gets wind that another is making a movie that is similar to a script they own they may try to make it and put it out earlier or around the same time. Hmm Correlation to pipeline companies?

• A secondary reason could be the benefits of shared marketing and buzz, especially if “Studio B” has a smaller budget. Interestingly, this could be why studios prefer to buy exclusive rights to comics and graphic novels, so other studios can’t replicate the storyline. Right-of-way a problem?

• “Twin Movies” have been released as far back as 1964 starting with Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb (1964) and Fail-Safe (1964). Penn East vs Diamond East? Northeast Direct vs Access Northeast?

FUN FACT – Competition in the Motion Picture Industry

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http://en.wikipedia.org/wiki/Dr._Strangelove_or:_How_I_Learned_to_Stop_Worrying_and_Love_the_Bomb

http://en.wikipedia.org/wiki/Dr._Strangelove_or:_How_I_Learned_to_Stop_Worrying_and_Love_the_Bomb

http://en.wikipedia.org/wiki/Fail-Safe_(1964_film)




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Both released in 1986

TOP GUN and IRON EAGLE


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TURNER & HOOCH and K9


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Late 1998 Early 1999

THE TRUMAN SHOW and EDTV


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ARMAGEDDON and DEEP IMPACT


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Early 2004 Late 2003

SHARK TALE and FINDING NEMO


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OBSERVE & REPORT and MALL COP


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OLYMPUS HAS FALLEN and WHITE HOUSE DOWN


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LNG Exports

Pricing flexibility will emerge to gain demand customers load while transportation, storage and supply proximity help LNG costs stay lower. The early bird gets the worm on these projects.

1. Corpus Christi, TX: 2.1 Bcfd (Cheniere – Corpus Christi LNG) 2. Lake Charles, LA: 2.2 Bcfd (Southern Union – BG/Trunkline LNG) 3. Cove Point, MD: 0.82 Bcfd (Dominion – Cove Point LNG) Approved 4. Lavaca Bay, TX: 1.38 Bcfd (Excelerate Liquefaction) 5. Elba Island, GA: 0.35 Bcfd (Southern LNG Company) 6. Sabine Pass, LA: 1.40 Bcfd (Sabine Pass Liquefaction) 7. Lake Charles, LA: 1.07 Bcfd (Magnolia LNG) 8. Plaquemines Parish, LA: 1.07 Bcfd (CE FLNG) 9. Sabine Pass, TX: 2.1 Bcfd (ExxonMobil – Golden Pass) 10. Pascagoula, MS: 1.5 Bcfd (Gulf LNG Liquefaction) 11. Plaquemines Parish, LA: 0.30 Bcfd (Louisiana LNG) 12. Freepoint , TX: 1.8 Bcfd (Dow – Osaka Gas) Approved

Competition is alive and well in the natural gas industry


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NE Natural Gas Production

Natural gas production has remained at an all time high over the last few months with a little over 8 BCF in the NE and over 17 BCF in the US overall.



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NE Pipeline Projects Competing northeast pipeline expansion projects are nothing new. Just like with “Twin Movies” its not uncommon to have similar projects proposed at the same time. The “not in my backyard” philosophy works to create liquidity for potential shippers, gathering systems and producers with ties to the projects, and markets with load obligations at the burner tip.



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• North-South Expansion

• Marc I Expansion

• Marc II Expansion

• Seneca Lake Expansion – Gallery II

Crestwood Business Development

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Edmund Knolle

VP Business Development, Natural Gas Business Unit

Crestwood Equity Partners LP


700 Louisiana Street, Suite 2550 Houston, TX 77002

P: 832-519-2282 C: 713-818-2195 [email protected]

mailto:[email protected]


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North-South Expansion

1. “Northeast Pennsylvania Connector” (NS-1 compressor station expansion) – increases Millennium delivery capacity by 110 MMcfd

o Anticipated in-service date of Dec-2014

o Precedent agreements executed under new rate schedule FTS-2 (point-to-point)

o Working with Millennium to increase our interconnect to 850 MMcfd

2. Evaluating additional new gathering lateral and additional receipt points to accommodate growing Susquehanna production

3. North Lateral loop – evaluating looping of North Lateral (20”) to accommodate further producer interest in deliveries into Millennium Pipeline

CNYOG Expansions

NS-1 Compressor Sta. NS Lateral/Millennium

Interconnect


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™ Presentation Title 19

MARC I Expansion

1. Shipper interest in new MARC I receipt point at Wilmot to accommodate growing production on Access system

2. Crestwood evaluating related expansion of Transco meter up to 1.1 Bcfd (additional 380 MMcfd)

3. Blanket authority project – initial in-service date as early as July 2015, ramping up through the end of 2015.

4. Incremental MARC I FT will be provided under rate schedule FTS-2.

CNYOG Expansions (cont.)

MARC I/Transco Meter

Wilmot Receipt Pt.


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CNYOG MARC II Pipeline, 30 mi.

(proposed)

PennEast Pipeline, 105 mi (proposed)

CNYOG Expansions (cont.)

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30”

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MARC II Expansion –Non Binding Open Season

• Opportunity:

– To provide firm baseload supply to 1 Bcfd of end-user demand on the proposed PennEast Pipeline

– CNYOG currently moves 1.5 Bcfd of natural gas per day

– CNYOG supply volumes expected to increase to 2.5 Bcf per day by 2017-18

• FERC 7c Project

– In-service late 2017

• Base case project design: 1.0 Bcfd

– Receipt Points: All CNYOG points

– Delivery Points: PennEast and Transco in Luzerne Co., PA

• Indicative rates

– Discounted reservation rate subject to volume, final capital estimates & outcome of capex risk sharing w/ shippers

– Recourse commodity rates, power, fuel use, and loss

• 10 year minimum primary contract term

CNYOG MARC I Pipeline


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• New Firm Rate Schedule FTS-2 (CNYOG)

– FTS-2 is a traditional point-to-point service on North Lateral, South Lateral and MARC I facilities

– FTS-2 point-to-point service will allow us to increase system utilization and efficiency

– FERC approved July 28, 2014

– Scheduling priority for firm service nominations:

1. Nominations from a primary Point of Receipt to a primary Point of Delivery

2. Nominations using secondary Points in the direction of flow and overlapping the Primary Path

3. All other firm services using a secondary Point of Delivery and/or Receipt

o FTS-2 out-of-path nominations must be within the service’s rate zone (NS or MARC I)

New Service

Presentation Title


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Seneca Lake Storage Expansion:

• Seneca Lake Storage, Gallery II

• Certificate issued for Seneca Lake Gallery II expansion (0.55 Bcf of high-deliverability, multi-cycle storage)

• Non-binding open season

Winter 2014

Arlington Storage Expansions

Seneca Lake Working Gas: 1.5 Bcf

Certificated expansion: 0.55 Bcf Connections with Dominion and

Millennium


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Tracy Halleck

Director, Northeast Marketing


700 Louisiana Street, Suite 2550

Houston, TX 77002

P: 713-380-3024 C: 281-352-6280

AIM: tracyhalleck

[email protected]

www.crestwoodlp.com

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THANKS SO MUCH FOR YOUR TIME I’m here until Thursday, try the Veal!!

Wes Deskin

Director, NE Asset Optimization


700 Louisiana Street, Suite 2550

Houston, TX 77002

P: 832-519-2252 C: 832-594-4406

AIM & Email:

[email protected]

www.crestwoodlp.com


http://www.crestwoodlp.com/


http://www.crestwoodlp.com/

crestwood midstream partners lp - millennium pipeline · connections for america’s energy ™ ™...

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