alaska natural gas transportation system a north american energy solution alaska natural gas...
TRANSCRIPT
Alaska Natural Gas Transportation System
A North American Energy Solution
Alaska Natural Gas Transportation System
A North American Energy Solution
November 30, 2001
Marty HeegVice President, Business Development
Agenda
Overview of Foothills Pipe Lines
A short history of the certificated Alaska Natural Gas Transportation System
ANGTS assets and readiness
Benefits to Alaska and Canada
Pipeline options
Our view of northern development and supply/demand
Who is Foothills? Sponsor of Alaska Natural Gas
Transportation System
Privately held corporation owned by TransCanada PipeLines and Westcoast Energy
Owner and operator of the Phase I portions of the ANGTS in Canada Phase I currently delivers 3.3 Bcfd of
natural gas to United States
Active in developing northern pipeline projects since 1970s
Acronyms AHPP -- Alaska Highway Pipeline Project
ANGTS -- Alaska Natural Gas Transportation System
ANGTA -- Alaska Natural Gas Transportation Act
NPA -- Northern Pipeline Act
ANNGTC -- Alaska Northwest Natural Gas Transportation Company
A Short History of ANGTS 1976 - ANGTA passed to expedite the pipeline
to take Alaska gas to southern markets
1977 - After extensive review of three alternatives, ANGTS is selected as the best project
1978 - NPA established in Canada as ANGTA counterpart
1980 - FERC/NEB approves building of Phase I of ANGTS
1981 - Phase I in service --Phase I portion of ANGTS has delivered
11 Tcf of Canadian gas to U.S. markets
ANGTS Flexible Framework The ANGTA/NPA framework
Provides for expediting the delivery of Alaskan gas to the Lower 48
Is tested and accepted framework
Allows for updates
Allows Project to be modified to the required capacity and pressure and the use of updated technology
ANGTS Status ANNGTC/Foothills was selected by the
United States and Canada to construct and operate the ANGTS
Significant assets have been secured FERC and NEB Certificates U.S. Corps 404 Permits Significant development work
completed 94% of right-of-way acquired, reserved
or under application
YUKON
NWTB.C.
NUNAVUT
ALBERTA
SASKATCHEWAN
Whitehorse
Prudhoe Bay
Inuvik
Fort Nelson
Fairbanks
Boundary Lake
Beaver Creek
Gordondale
Caroline
ALASKA
ALASKA Federal Grant
•434 miles have been acquired.State Application
•200 miles under active application.Other Lands
•110 miles to be acquired.YUKON Grant of easement
for the entire ROW in Yukon. Recognized in the Umbrella
Final Agreement.
NORTH B.C. Foothills holds Map Reserves
within this segment
ANGTS Land Tenure
ANGTS is Ready Today
Extensive field testing and technology work
Computerized Soils Database
Technical and Environmental Plans filed with FERC/NEB
Tariffs filed with FERC and NEB
Foothills and its shareholders have invested time, money and considerable effort to keep the Alaska Natural Gas Transportation System in an advanced state of readiness.
ANGTS is the Best Alternative Has been extensively reviewed
Follows existing infrastructure
Will minimize adverse environmental effects
Easily accessible for maintenance and operations
Lowest capital cost option
Quickest to market
Alaska
Nunavut
Yukon
Alberta
B.C.
NorthwestTerritories
Project Description
Size / Operating Pressure42” diameter / 2050 psi
CapacityInitial 2.5 Bcf/dUltimate 4.0 Bcf/d
Capital CostInitial US$7.6 BillionUltimate US$9.7 Billion
Alaska Natural Gas Transportation System
Lowest Cost, Quickest to Market for ANS Gas
Alaskan Benefits Increase in Gross State $55 billion
Product
Increase in Employment 26,000 person years
Increase in State and Local $12 billion Government revenues
Based on $3 MMbtu gas price over 25 years
Canadian Benefits Increase in Gross Domestic $19 billion
Product
Increase in Employment 11,000 person years
Increase in Government $ 5.2 billion revenues
Based on $3 MMbtu gas price over 25 years
ANGTS Advantages
Earliest Timing Three-year head start on a green field
project
Land Tenure Extensive right-of-way acquired, reserved or
under application
Flexible Framework Treaty between the U.S. and Canada
Best Route Follows existing transportation corridors
Benefits Extensive benefits to Alaska and Canada
Progress Report and Next Steps
MOU with withdrawn partners from ANNGTC
Formal proposal to the North Slope Producers
Producer decision on the project expected in the 1st Quarter of 2002
Our Perspectives on Northern Gas Development
Strong gas demand is here to stay
Two separate pipelines will be built from Alaskan North Slope and Mackenzie Delta
- Producers - Pipelines- First Nations - Local communities- Governments - NGOs
Collaboration is critical to early project execution
Optimization of South of 60 takeaway capacities required
Northern Gas Pipeline DevelopmentSouth of 60 Takeaway
Capacitieso
Options TransCanada Alliance Foothills / ANG / PGT Foothills / Northern Border Westcoast Energy New greenfield
Issues Western Canada supply Market pull Tolling structures Shipper netbacks Point of NGL extraction
