dominion energy questar pipeline, llc...14 february 27, 2020 dominion energy highlights • safety...
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Dominion Energy Questar Pipeline, LLC
2020 Customer Meeting
February 27, 20203
Shelley W. KendrickDirector, Marketing & Business DevelopmentDominion Energy Questar Pipeline
Welcome to Deer Valley! – Agenda
February 27, 20204
• Safety, Environmental, and Innovation Moment
• Introduction & Executive Overview
• Operations Update
• Marketing & Business Development Update
• Executive Q&A
• Market Outlook
• Wrap Up and Activities
Safety
February 27, 20205
How to stay healthy during cold and flu season
1. Get vaccinated
2. Stay home from work if you are sick
3. Cough and sneeze into your elbow, instead of your hands
4. Wash hands frequently – don’t touch your face
5. Disinfect hard surfaces and objects with an EPA-registered disinfectant
February 27, 20206
Environmental/Innovation
Smithfield RNG Project
1. Dominion Energy doubled their investment with
Smithfield Farms from $250 to 500 million through 2028
2. The expanded partnership will produce enough RNG to
power 70,000 homes and businesses, and reduce the
same amount of greenhouse gas emissions as taking
500,000 cars off the road or planting 40 million new trees
• Name
• Company
• What movie/series/book are you streaming?
Icebreaker
February 27, 20207
Please Introduce Yourself!
• Thank you!
• Ranked #4 of all pipelines surveyed
• Ranked #2 for regional pipelines
• Received excellent customer feedback
• Final study to be presented by Mastio later in March
• Results will be reviewed and a plan to act will be developed
• Specific improvements to be identified and implemented by year end
2019/20 Mastio Survey
February 27, 20208
• Increased Customer Activity • Firm Transportation sales – record volume• Throughput up – increased allocations at various delivery points
• Tariff Improvements/Modernization• Sale of Capacity – first-come, first-served – easier/quicker contracting• DEQP No Notice Transportation tariff modernized effective November 1, 2019 • Continuing review of tariffs for additional improvements
• Customer Service Improvements• Reduction in approval times for PAL deals• Notices – provide more detail
• Pipeline Expansion Opportunities • DEQP• DEOP
2019 Highlights
February 27, 20209
February 27, 202010
Cristie NellerVice President – Western Pipeline OperationsDominion Energy Questar Pipeline
February 27, 202011
Safety
Ethics
Excellence
Embrace Change
One Dominion Energy
Our Values
12
~ 7.5 million customers across 18 states
February 27, 202013
Updated Operating Segments
February 27, 202014
Dominion Energy Highlights
• Safety performance set new company record for 3rd straight year; 65% reduction since 2006
• Achieved weather-normalized operating earnings that met or exceeded the midpoint of our guidance for the 16th straight quarter
• Introduced a net zero emissions by 2050 target that accounts for carbon and methane emissions across both electric and gas operations
• Providing our customers with solutions to reduce their environmental footprints through electric school buses, enhanced grid for EV, marine LNG and renewable natural gas
Building a clean and sustainable energy future
FIVE PILLARSOF OUR VISION
Delivering clean, reliable, affordable energy
Protecting our environment
Serving customers and communities
Empowering our people
Creating shareholder value
1
2
3
4
5
February 27, 202017
Net zero emissions by 2050Carbon and methane across electric and gas operations
NET ZERO“We’re committed to reducing
greenhouse gases, that’s why
we’re making a bold new
commitment to achieve ‘net
zero’ emissions by 2050.”
Recent Accomplishments
February 27, 202018
Dominion Energy Questar Pipeline
Safety
• Record-setting safety year across all Dominion Energy business units
(2019 OSHA recordable rate of 0.57 for DE Gas Transmission)
• Over 600 days for DEQP Gas Transmission without an OSHA Recordable injury
• Completed 364 miles of ILI and 7 storage well workovers
Ethics
• Completed EPA Natural Gas Star filing in May 2019; Joined ONE Future Coalition
• Implemented Voluntary LDAR program with long term improvement targets
• ~100% of colleagues participated in 2019 Diversity & Inclusion training
Excellence
• Strong customer service – 2020 Mastio Quality Award (Regional Pipelines)
• Throughput increase of 11%+ from 2018 - 2019
• Record levels of contracted capacity for transportation & storage
Together we put Actions Speak Louder into motion.
Recent Accomplishments
February 27, 202019
Dominion Energy Questar Pipeline
Embrace
Change
• Implemented use of remote tracking for In-Line Inspection (ILI) tools
• Implemented portable re-compression technology to reduce blowdowns
• Successfully implemented a new DOT tracking system to improve compliance
documentation
Teamwork One Dominion Energy
• Continued strong community engagement including Foundation giving and
volunteer involvement
• Partnering with local schools and organizations to mentor and train the next
generation of energy providers
• Strategic vision focused on sustainability, consumer solutions, innovation
Building a clean and sustainable energy future.
The people of Dominion Energy are leading the country’s transition to clean energy. We are transforming everything we do to build a more sustainable future for our customers, the planet and our company.
2020 Priorities
February 27, 202020
Dominion Energy Questar Pipeline
Safety• Employee and contractor safety excellence - goal of zero accidents
• Robust set of pipeline and storage integrity management activities
Ethics • Excellent environmental stewardship and regulatory compliance
Excellence• Enhanced customer service – improvements based on feedback
• High operational reliability – no firm service interruptions
Embrace
Change• Continue implementation of Methane Reduction programs leading to Net Zero
TeamworkOne Dominion Energy
• Strengthen relationship and communication with customers & stakeholders
• Ideas for new or enhanced services
Letter from the Chairman
February 27, 202021
Cristie NellerVice President – Western Pipeline OperationsDominion Energy Questar Pipeline
February 27, 202022
Kraig BlackburnDirector Area Transmission OperationsDominion Energy Questar Pipeline
Jeannie M. YerkovichDirector Area Transmission Operations & Gas ControlDominion Energy Questar Pipeline
• 2020 Maintenance Schedule
• Commitment to Pipeline and Storage
Integrity
• Commitment to Safety and Reliability
Pipeline Maintenance
February 27, 202023
February 27, 202024
2020 Maintenance Schedule
Possible Shipper Impact
Month Category Preliminary Dates Location Project Possible Customer Impact Duration
March Compliance March 24-26Fidlar Compressor
StationAnnual Maintenance/DOT’s No impact to customers is expected (Depends on
nominations from White River Hub)3 days
April
Reservoir Test April 7-15 Clay Basin Annual Withdrawal TestApril 7, constant 275 MMcf/d withdraw rate
April 8, constant 325 MMcf/d withdraw rate
April 9-15, Reservoir shut-in
9 days
Compliance April 8
Simon
Compressor
Station
Annual Maintenance/DOT’sIncreased pressures in the East Fields, no impact to
nominations is expected1 day
May Compliance May 12-15
Thistle
Compressor
Station
Annual Maintenance/DOT’sNo impact to customers is expected (Depends on
downstream pipeline flexibility)3 days
July Compliance July 7-10
Oak Spring
Compressor
Station
Annual Maintenance/DOT’sGoshen Capacity reduced to 300 Mdth/d from 384.5
Mdth/d1 day
October Reservoir Test October 6-14 Clay Basin Annual Injection Test
Oct. 6, constant 210 MMcf/d inj rate
Oct. 7, constant 260 MMcf/d inj rate
Oct. 8-14, Reservoir shut-in 9 days
Pipeline Integrity Management
February 27, 202025
DEQP 2020 planned In Line Inspection – roughly 97 miles
SML70Clay Basin to NWP14.56 miles, 20”
Caliper/MFL
ML58, 101Clay Basin to NightingaleML58, 42.13 miles, 20”
ML101, 41.34 miles, 20”Caliper/MFL
Note: 2019 completed In Line Inspection – 364 miles
ML68Clough to Weaver RidgeML68, 78.25 miles, 14”
Caliper/MFL
• Storage Well Workovers - Baseline Assessments• 2018 – 8 Wells
• 2019 – 7 Wells
• 2020 – 4 to 6 Wells Planned
• 2025 – All Baseline Assessments Complete
(PHMSA required by 2025)
Storage Integrity Management
February 27, 202026
2018 Recipient Utah Board of Oil, Gas and Mining Environmental Excellence Award
• Phase I & II (2016 & 2017)
• Highest population and structural densities
Class III and High Consequence Areas (HCAs)
ML 68 Replacement Phase III
Pipeline Safety and Reliability
February 27, 202027
• 2019 Phase III Replacement (2019)
• Completes Class III & HCA in Rifle
• Proactive multi-phase replacement - Rifle, CO
2019 Accomplishments
• Safety success >600 days without an
OSHA recordable
• No service interruptions to primary
firm customers
• Record cold day October 30
• 86% methane emission savings
• Successfully pigged 364 miles of pipe
Pipeline Safety and Reliability
February 27, 202028
Questions?
February 27, 202029
30
Joseph HulseManager – Marketing & Business DevelopmentDominion Energy Questar Pipeline
• Current Conditions: DEQP & DEOP
• Growth Opportunities:
- Wamsutter West Update
- DEQP & DEOP Opportunities to Expand & Debottleneck
• Customer Tools & Process Improvements
• Available Unsold Firm Capacity
• Ongoing Opportunities
Agenda
February 27, 202031
LittleMountain
Altamont
MFidlar
OakSpring
Dragon Trail
Thistle
BlindCanyon
C
C
MM M
C
C
M
Dripping Rock
AtmosEnergy
Myton
MM
M
M
M
ClayBasin
S
S
S
M
M
M
M
M
C
C C
SouthernStar
Hyrum Gate
Sunset Gate
Porters Lane
Coalville
Chalk Creek
Whitney Canyon
Roberson
Leroy
M
Bluebell
M
MC
S
% Subscribed % LT
DEQP: 96% 90%
DEOP: 97% 95%
Storage: 100 % 100%
WRH: 93 % 93% *As of 12/31/19
Annual Throughput
2019 : 111%*Compared to 2016-2018 annual throughput
Constraints:DEOP:
• Wamsutter
• KRGT Delivery
• Painter Lateral
DEQP:
• Kanda
• Southern Star
• Fidlar
• Goshen
• ML 103
• Clay Basin
Current Conditions: DEQP & DEOP
Dominion Energy Questar Pipeline, LLC
LEGEND
Meter Station
Compressor Station
Storage FacilitiesS
M
C
LittleMountain
XO16
Altamont
WhiteRiver Hub
MFidlar
OakSpring
Dragon Trail
Thistle
BlindCanyon
C
C
MM M
C
C
M
Dripping Rock
AtmosEnergy
Myton
MM
M
M
M
S
ClayBasin
S
S
S
M
M
M
M
M
C
C C
Wamsutter
SouthernStar
Hyrum Gate
Sunset Gate
Porters Lane
Goshen
Payson Gate
Nephi City
Coalville
Chalk Creek
Whitney Canyon
Hams Fork
Roberson
Leroy
M
Bluebell
M
Dominion Energy Questar Pipeline
Dominion Energy Overthrust Pipeline
MC
143 days
71days
2019 Commonly Constrained Locations
45 days
41 days
29 days
WIC: 175 daysREX: 66 days
122 days
104 days
91 days
43 days
Proposed Pipeline
DE Questar PipelineDE Overthrust Pipeline
WHITE RIVER HUB• DE Questar Pipeline• Rockies Express• Northwest• TransColorado• WIC• CIG
GOSHEN• DE Questar Pipeline• Kern River
WAMSUTTER• DE Questar Pipeline• Rockies Express
• WIC• CIG
OPAL• DE Questar Pipeline• DE Overthrust• Kern River
• Ruby• CIG• Northwest
CLAY BASIN
Cryogenic Processing
Natural Gas Market HubNatural Gas Storage
Kern River Pipeline
DE Questar Pipeline
DE Overthrust Pipeline
Kern River Pipeline
Specifications Description
Natural Gas Storage
(BCF)
• 54 Bcf working gas• 66.21 Bcf cushion gas
Interconnect Capacity
(Dth/d)
• DE Questar Pipeline• Injection: 217,000• Withdrawal: 700,000
• Northwest Pipeline• Injection: 250,000 • Withdrawal: 320,000
* Numbers listed are meter sizing, and actual volumes depend on pipeline conditions
Location
• Daggett County, Utah• NE corner of Utah near Wyoming &
Colorado borders• 50 miles from Rock Springs, WY
Clay Basin StorageLargest Natural Gas Storage Facility in the Rocky Mountains
February 27, 202034
February 27, 202035
Clay Basin InventoryAs of February 25, 202- Working Gas Inventory is 15.37 MMDTH
0
10
20
30
40
50
60
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Min/Max Range 19-20
MM dths
DEOP - Wamsutter West Expansion ProjectFully Subscribed
WHITNEY CANYON
WAMSUTTER
OPAL
DEOP
DEQP
Compression Facility
Piping Modificationsat Rocks Springs
Measurement Upgrades at Hams Fork
Piping Modificationsat WamsutterPAINTER
Piping Modificationsat Cabin 31
Summary: ❑ 120,000 Dth/d of Firm
Transportation
❑ Receipt: Wamsutter(WIC or REX), Rock Springs, Clay Basin
❑ Delivery: Hams Fork
Status: ❑ Design, Engineering,
Contracting & Permitting Phase
❑ Anticipated in-service of November 1, 2020
Incremental: 120,000 Dth/d
February 27, 202036
DEOP – Potential Expansion ProjectsPhase II & III to the West
WHITNEY CANYON
WAMSUTTER
OPAL
DEOP
DEQP
Compression Facility
PAINTER
Phase II: ❑ ~80,000 Dth/d
❑ Receipt: Kanda (DEQP or WIC)
❑ Delivery: KRGT Painter, DEQP Whitney Canyon
❑ Timing: TBD
Phase III: ❑ ~100,000 Dth/d
❑ Receipt: Wamsutter(WIC or REX), Kanda (DEQP or WIC)
❑ Delivery: KRGT Painter, DEQP Whitney Canyon, Opal Points
❑ Timing: TBD
Phase II: ~80,000 Dth/d
Phase III: ~100,000 Dth/d
February 27, 202037
DEQP – Potential Expansion ProjectAdditional Receipt Capacity from Southern Star (Skull Creek Receipt)
38
SOUTHERN STAR
CLAY BASIN
CIG
Incremental Long-Term Receipt Capacity from Southern Star
Available
+17,500 dth/d TBD
KANDACOLEMAN
OPAL
February 27, 2020
DEQP – Potential Expansion ProjectsJTL 138 Extension - Incremental Takeaway Capacity at Myton or Brundage
39
JL1
38
ML40
ML104
Dominion Energy Questar Pipeline
Proposed Extension of DEQP’s JL138
Existing Processing (Refrigeration) Facilities
Existing DEQP Facilities
Existing Processing (Cryogenic) Facilities
Processed Gas Flow
Unprocessed Gas Flow
JL4
7 /
JTL
78
Altamont
Brundage
Myton
Price
Bluebell
JTL78 / ML40 JunctionML40
ML104
Incremental Long-Term Takeaway Capacity from Myton
Available Project Description
11,500 dth/d at Myton or19,000 dth/d at Brundage
Now
4-mile extension of JL 138 and yard-piping+70,000 dth/d incremental from
either locationTBD
February 27, 2020
Customer Tools & Process Improvements
February 27, 202040
DEQP is dedicated to providing the highest quality of support & service to its customers
Creativity & Innovation:
• Historical Clay Basin Fuel Posting
• Customer Cheat Sheets (Summary of information for DEQP, DEOP, WRH)
• ICE Chat Blaster Group
• PAL Notices
• Tutorials
Reminder: Tariff Procedures
February 27, 202041
DEQP & DEOP
Highlights:• All posted capacity is first-come, first-served
• Unless an auction notice is posted
• Auction Procedures:• Parties can update bid until deadline• Compete round: Triggers for parties tied for the highest economic value, ½ hour for DEQP, Best bid for DEOP
• Ability to enter into prearranged deals• Short Term Amendments• Unsold Capacity Requests
• Defined date for Short Term Amendments• 4th to last business day of each month
• 90 Day Rule: Applies if contract term is less than one year in length
February 27, 202042
Ongoing Opportunities
Transportation, Storage, Gas Sales, etc:
• LTU / Re-Contracting Capacity – DEQP & DEOP
• Clay Basin – ISS, PAL1
• Stipulation Gas Sales• Procedures posted online
• Executed NAESB
• Creative Deal Structures
Dominion Energy Questar Pipeline, LLC
KANDA/COLEMAN SUMMARYNitchie Gulch to WIC, CIG & DEOPWest of Nightingale to WIC, CIG & DEOPEast of Nightingale to WIC, CIG & DEOP
25,29041,720
14,520
LEGEND
Volume in Dth/d (Front-haul)
Meter Station
Compressor Station
Storage FacilitiesS
M
C41,720
LittleMountain
XO16 ( )
34,570Altamont
21,280
WhiteRiver Hub
MFidlar
OakSpring
Dragon Trail
Thistle
BlindCanyon
C
C
MM M
C
C
M
Dripping Rock
19,110
AtmosEnergy
0
Myton
MM
66,300
M
M
M
S
ClayBasin
0
22,9900
150,000
700
2,63059,960
S
S
S
M
M
M
M
M
C
C C
Wamsutter
SouthernStar
Hyrum Gate
Sunset Gate
Porters Lane
Goshen
Payson Gate
Nephi City
Coalville
Chalk Creek
Whitney Canyon
Opal
Roberson
Leroy
M
Bluebell
M
Volume in Dth/d (Back-haul)00
Dominion Energy Questar Pipeline
Dominion Energy Overthrust Pipeline
00
MC
DEQP - Opportunities
Hams Fork
Dominion Energy Overthrust Pipeline, LLC
476,0000
0
100,000
287,000494,000
100,000
300,000 52,880
0
476,000C
CC
C
M
M
M
M
M
M
M
LEGEND
Volume in Dth/d (Front-haul)
Meter Station
Compressor Station
Storage FacilitiesS
M
C
00
Volume in Dth/d (Back-haul)00
Dominion Energy Overthrust Pipeline
Dominion Energy Questar Pipeline
S
M
S
REX
Point of Rocks
XO-16
Clay Basin
Eakin
MM
Clear CreekS
Ryckman CreekPainterWhitney Canyon
Naughton
Roberson
Ruby
DEQP
WIC
Rock Springs
M
Clear Creek
M
Opal
M
WIC
Wamsutter
DEOP - Opportunities
Summary
February 27, 202045
• DEQP & DEOP Capacity is ~100% subscribed
• Working to debottleneck DEQP & DEOP
– Wamsutter West, Skull Creek, etc.
• Customer opportunities include:
– Pipeline transportation capacity
– Storage capacity
– PAL1
– Stipulation Gas Sales
46
Joseph HulseManager – Marketing & Business DevelopmentDominion Energy Questar Pipeline
Questions?
February 27, 2020
47
Executive Panel / Q&A
February 27, 2020