Natural Gas Pipeline 101 Brian Fahrenthold Director Government - - PowerPoint PPT Presentation

1st ANNUAL ARKANSAS ENERGY ROCKS TEACHER ENERGY EDUCATION WORKSHOP | JUNE 16 - 18

Brian Fahrenthold

Director Government Affairs, Spectra Energy

Natural Gas Pipeline 101

Spectra Energy Corp |

Spectra Energy: Our Pipelines

Gas storage facility Gas processing plant Propane terminal NGL storage Shale gas formations Crude storage Major oil pipeline terminal

Natural Gas Transmission Pipe: 19,000 mi Natural Gas Storage Capacity: 300+ Bcf Natural Gas Gathering Pipe: 69,000 mi Crude Transmission Pipe: 1,700 mi NGL Transmission Pipe: 1,500 mi SE Gas Processing Capacity: 3.7 Bcf/d 2013 DCP Gathered and Processed: 6.4 Tbtu/d 2013 DCP NGLs Produced: 425 MBbl/d Distribution Pipe: 39,000 mi Union Gas Retail Customers: 1.4 million 2

Spectra Energy Corp |

Natural Gas Value Chain

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Exploration & Production Gathering & Processing Natural Gas Pipelines Natural Gas Storage End-Users Mixed Product Pipelines Fractionation Liquids Pipelines Liquids Storage End-Users

NATURAL GAS SEGMENT NATURAL GAS LIQUIDS SEGMENT NATURAL GAS VALUE CHAIN

Where does natural gas come from? And where does it go?

Spectra Energy Corp |

U.S. Natural Gas Pipeline Network

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There are lots of gas pipelines all over the U.S. – there are more pipes in places where there is more gas

Source: Energy Information Administration, Office of Oil and Gas. eia.gov

Spectra Energy Corp |

Arkansas Pipeline Network

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Spectra Energy Corp |

Natural Gas Pipeline Fun Facts

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Spectra Energy Corp |

Spectra Energy Corp |

• Right of Way
• Environmental permitting

preparation

• File FERC 7(c) application

Getting Natural Gas to Customers

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• Safety
• Pipeline integrity
• Engagement & education

Provide the service to customers:

Operations Build it: Engineering & Construction

Sell an idea to customers:

Business Development

• Obtain market commitment
• Engage stakeholders
• Begin survey permissions
• Execute binding agreement

This process can take years from conception to operation

Spectra Energy Corp |

Supply & Demand Routes are Changing

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• New supplies from shale gas
• Providing markets with

access to diverse and abundant supply sources

• Connecting suppliers to the

largest and fastest growing markets

Traditional Flows Future Flows

Growth from a position of strength

Spectra Energy Corp | 10

Engineering & Construction: Putting Steel in the Ground

Spectra Energy Corp | 11

Engineering & Construction: Transporting Natural Gas

Compressor Station Pipeline Right of Way with a pipeline marker

Spectra Energy Corp |

Pop Quiz Given what we do, our No. 1 issue is…

Hydraulic Fracturing Pipeline Safety Climate Change

A. B. C.

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Spectra Energy Corp |

Operate: Pipeline Safety – Fitness for Service

Age alone is not a significant indicator of transmission pipeline fitness for service

• More important factors for determining pipeline fitness are:

–The material of the pipe –How it was constructed –How it has been operated –How it has been maintained

• The ability to prevent, detect and repair problems has improved

with testing, risk assessment, and advances in technology

–Testing of pressure holding capability is performed prior to placing a pipeline in service –Monitoring and testing are performed during operations to ensure

• ngoing safety

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Spectra Energy Corp |

Operations: Pipeline Integrity Management

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What’s a smart pig??...

Spectra Energy Corp |

Operations: Smart Pigs – or Inline Inspection Tools

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…Smart Pig! Loading an inline inspection tool into a pipeline

Spectra Energy Corp |

Operate: Pipeline Integrity Management

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Inline inspection during pipeline construction

Spectra Energy Corp |

U.S. Department of Transportation, 2012

Pipelines are the Safest Form of Transportation

33,808 725 749 469 22 2,217,000 8,268 3,709 279 109

500,000 1,000,000 1,500,000 2,000,000 2,500,000

Highway Railroad Waterborne Air Pipelines

Fatalities Injuries

Safety Statistics

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Spectra Energy Corp |

Pipeline and Public Safety

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Regulatory

• versight

Public safety

• fficials

Excavators Public Pipeline

• perators

Pipeline Safety is a shared responsibility

Recognized by:

Recognized by: