southern natural gas company, l.l.c. shipper meeting€¦ · 2016 summer overview • sng’s...
TRANSCRIPT
1
Southern Natural Gas Company, L.L.C. Shipper Meeting
October 12-13, 2016
The Sheraton Hotel
Birmingham, Alabama
2
Welcome and Opening Remarks
Norman Holmes President, South Region
SNG Shipper Meeting Birmingham, AL ▪ October 12, 2016
3
Agenda
• Operations Review – Ganesh Venkateshan, Gas Control Manager
• Business Development Updates – Mike Varagona, VP of Business Development
• NAESB & DART Updates – Gene Nowak, VP of Transportation & Storage Services
• Announcements and Remaining Agenda – Janice Parker, Commercial Director
4
SNG Rate Case Timing
• Per 2013 Rate Case Settlement, SNG must file new rates to be effective 9/1/18
– Base period of 12/1/16 - 11/30/17
– Test period of 12/1/17 – 8/31/18
• We will try to reach a pre-filing settlement
– Similar process to 2013
– Will begin customer settlement discussions in fall of 2017
• SNG will file a rate case on 3/1/18 if pre-settlement efforts fail
5
Questions?
Thank You for Your Business!
6
SNG Operations Review
Ganesh C. Venkateshan Manager, SNG Gas Control
SNG Shipper Meeting
Birmingham, AL ▪ October 12, 2016
7
Agenda
• System and Transportation Overview • Operations Review
• 2016 Summer Review • 2015-2016 Winter Review • Operational Flow Orders • Maintenance Update
• Getting Ready for Winter 2016/2017
8
SNG System Overview
South Main
North Main
Cypress Line
East Leg
West Leg
SESH South Georgia
1.8 bcf/d capacity
2.4 bcf/d North Louisiana
Zone 0 Zone 1 Zone 2 Zone 3
Elba Express
Ocmulgee
Gwinville
Wrens
Enterprise Elba Island
Bear Creek
Muldon
• Miles of pipe 7,000 miles
• Flow meters 550
• Total HP 560,000
• Total compressor stations 36
Approximate values
• SNG winter capacity 3.9 Bcf/d
• Winter peak day delivery 1/8/10 4.149 MMDth
• Summer peak power gen 6/13/16 1.746 MMDth
• Total storage fields 2
• Storage working capacity 65.6 Bcf
Approximate values
9
2016 Transportation YTD September
• 2016 Transport Summary – Power Generation markets are up 3.5% from 2015
• New power generation record (previously set in 2012) • Increases driven by lower Henry Hub pricing which drove fuel switching in
Southeastern U.S.
– Lower gas prices • Driven primarily by higher storage inventories and available flowing supply
– Total System Deliveries averaged 2,612 MDth/d • Slightly greater than 2015
– Moved to the DART computer system and pathed nominations in April – Storage is on track to fill to average levels in November – Outages completed on a timely schedule
10
CSS Storage Inventory
0
10
20
30
40
50
60
J F M A M J J A S O N D
MD
th
2006-2014 2012 2015 Capacity Average 2016
Customer CSS Inventory
11
Average Daily Deliveries
943 977 953 853 962 885 827 884 959 975 926
312 417 378 559
617 684 1,004 899
887 1,067 1,105
206 196 204
199
233 243
247 237 236
240 221
478 488 543 461
432 358
355 282
311
288 360
1,938 2,078 2,078 2,072
2,243 2,170
2,433 2,302
2,393
2,570 2,612
0
500
1,000
1,500
2,000
2,500
3,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Md
th/d
LDC Power Industrial Interconnects
YTD - SEP
12
Year on Year Deliveries Sept YTD 2016 YTD
September 2015 YTD
September % Change
LDC 926 975 -5.0%
Power 1,105 1,067 +3.5%
Industrial 221 240 -8.1%
Interconnects 360 288 +25.0%
TOTAL 2,612 2,570 +1.6%
• All volumes are MDth/d
13
2016 Summer Review
14
2016 Summer Overview
Month
Throughput Comparison to Same Month Previous Year
No. of Type 3
OFO Days
Weather
May 2016 8.1% higher 0 Slightly warmer than avg
June 2016 9.0% higher 16 Much warmer than avg
July 2016 6.2% higher 26 Much warmer than avg
August 2016 7.1% higher 24 Much warmer than avg
September 2016 6.7% higher 0 Much warmer than avg
• Type 3 OFOs are implemented to protect primary firm service when demand for transportation exceeds pipeline capacity
• All industry segments continue to add to and use their firm capacity
15
2016 Summer Overview
• SNG’s facility performance was good during the extended hot weather – Compressor stations were staffed as needed
• Record power generation
• 2015 Summer vs 2016 Summer
– 2015 – milder than this year, shorter duration, lower gas prices – 2016 – higher temperatures, longer duration, lower gas prices
• Storage levels were higher than normal but facilities performed well
• 3-month Thomaston Compressor Station outage was completed as scheduled
without limiting in-path or primary firm service. We also had other planned outages and ILI runs to manage.
16
Summer Weather and Throughput
17
Summer Cooling Degree Days (CDDs*) 2010-2016
*CDD = System Mean Temperature Minus 65 Degrees
220
484
597 562
426
221
418
467 470
281
0
100
200
300
400
500
600
700
May June July August September
2011 2012 2013 2014 2015 2016 10 Year Average
CD
Ds
18
Impact of Summer Weather on Total Demand
0
100
200
300
400
500
600
700
0
500
1,000
1,500
2,000
2,500
3,000
3,500
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CD
Ds
Md
th/d
Avg Daily Demand CDD
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Average Daily Deliveries May – September
751 756 705 635 659 683 720 670 711 738 728
470 540 499 621
764 822
1,115 917
1,036 1,154 1,264 209
195 204 205
230 244
237
237 233
246 217
563 612
592 536 481 354
369
276
306 273
382
1,993 2,103
2,000 1,997 2,134 2,103
2,441
2,100
2,286 2,411
2,591
0
500
1,000
1,500
2,000
2,500
3,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Md
th/d
LDC Power Industrial Interconnects
MAY - SEP
20
2016 Summer Throughput
• Total System Deliveries averaged 2,591 MDth/d • 180 MDth/d greater than 2015 summer
• Peak power generation days for 2016 – 06/13/16 1,746 MDth – 07/25/16 1,693 MDth – 07/08/16 1,680 MDth
• SNG set several Power Demand Records this summer – Top 5 days – 9 out of top 10 days – 15 out of top 20 days
• Power Generation increase – Driven by Henry Hub pricing which drove fuel switching in southeastern U.S. – Warmer than average summer
21
May-Sep 2016 Throughput 2016
May – Sep
2015
May – Sep % Change
LDC 728 738 -1.4%
Power 1,264 1,154 +9.5%
Industrial 217 246 -12.0%
Interconnects 382 273 +39.7%
TOTAL 2,591 2,412 +7.4%
• All volumes are MDth/d
22
Summer Average Daily LDC Demand
0
100
200
300
400
500
600
700
800
900
May Jun Jul Aug Sep
2012 2013 2014 2015 2016
Md
th/d
23
Summer Average Daily Power Demand
0
200
400
600
800
1,000
1,200
1,400
1,600
May Jun Jul Aug Sep
2012 2013 2014 2015 2016
Md
th/d
24
Summer Deliveries By Year
0
500
1,000
1,500
2,000
2,500
3,000
2012 2013 2014 2015 2016
May June July August September
Avg Dels = 2,591 CDDs = 2,289
Md
th/d
Avg Dels = 2,441 CDDs = 1,871
Avg Dels = 2,100 CDDs = 1,583
Avg Dels = 2,286 CDDs = 1,784
Avg Dels = 2,411 CDDs = 1,818
25
Power Generation in the Summer Has a Strong Correlation to Weather
0
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CD
D*
Md
th/d
Daily Power Demand CDD
*Cooling Degree Day (CDD) = System Mean Temperature Minus 65 Degrees
26
But Power Demand is Also Impacted by Gas Prices
$0.00
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$3.00
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1,600
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SNG
Ind
ex P
rice
Md
th/d
Daily Power Demand SNG Index Price
27
Atlanta Area Summer Cooling Degree Days (CDDs)
CDD = System Mean Temperature Minus 65 Degrees
Actual Actual
CDDs % of Normal CDDs % of Normal
May 206 112% 263 143%
Jun 473 127% 446 120%
Jul 559 119% 517 110%
Aug 540 121% 470 105%
Sep 408 91% 266 100%
2186 126% 1962 113%
2016 2015
28
2015-2016 Winter Review
29
2015-16 Winter Overview
Month
Throughput Comparison to Same Month Previous Year
No. of Type 3
OFO Days
Weather
November 2015 7.8% lower 1 Much milder than avg
December 2015 10.9% lower 0 Much milder than avg
January 2016 0.8% lower 15 Slightly colder than avg
February 2016 12.9% lower 8 Slightly milder than avg
March 2016 7.1% lower 0 Much milder than avg
• Type 3 OFOs are implemented to protect primary firm service when demand for transportation exceeds pipeline capacity
• All industry segments continue to add to and use their firm capacity
* Unplanned maintenance during average winter weather may require a Type 3 OFO
30
2015-16 Winter Overview
• SNG’s facility performance was good during the winter – Compressor stations staffed 24x7 as needed
• 2014-2015 Winter vs 2015-2016 Winter
– 2014-15 – multiple, longer duration cold fronts, lower gas prices – 2015-16 - milder temperatures, shorter-lived cold fronts, lower gas prices
• Storage facilities performed well; more inventory than average
• The amount of large planned maintenance projects in 2016 caused SNG to start its
maintenance season in late February to take advantage of milder temperatures forecasted for March
• Flowing supply was at a similar level to the previous year but the mix was slightly different
31
Texas
Oklahoma Elba
Island
Muldon
Bear
Creek
Elba Express
NW Alabama 2016 153 MMcf/d 2015 174 MMcf/d 2011 237 MMcf/d 2008 262 MMcf/d
North Louisiana 2016 213 MMcf/d 2015 209 MMcf/d 2011 281 MMcf/d 2008 279 MMcf/d
All Other 2016 347 MMcf/d 2015 250 MMcf/d 2011 167 MMcf/d 2008 41 MMcf/d
West Leg 2016 587 MMcf/d 2015 632 MMcf/d 2011 640 MMcf/d 2008 562 MMcf/d
East Leg 2016 336 MMcf/d 2015 379 MMcf/d 2011 375 MMcf/d 2008 648 MMcf/d
Total Supply 2016 2,506 MMcf/d 2015 2,503 MMcf/d 2011 2,240 MMcf/d 2008 2,093 MMcf/d
EEC/SLNG 2016 134 MMcf/d 2015 130 MMcf/d 2011 132 MMcf/d 2008 301 MMcf/d
Shale Interconnects 2016 736 MMcf/d 2015 729 MMcf/d 2011 408 MMcf/d 2008 0 MMcf/d
SNG System Supplies By Major Location Average Daily Supply for 12 Months Ending March
32
Winter Weather and Throughput
33
Winter Heating Degree Days (HDDs*) 2011-2016
*HDD = 65 Degrees Minus System Mean Temperature
253 267
665
456
157
321
557 607
461
293
0
100
200
300
400
500
600
700
800
900
November December January February March
2011/12 2012/13 2013/14 2014/15 2015/16 30 Year Average
HD
Ds
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Impact of Winter Weather on Total Demand
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HD
Ds
Md
th/d
Avg Daily Demand HDD
35
Average Daily Deliveries January – March 2006-16
1,318 1,350 1,397 1,247
1,559 1,280
1,048 1,291 1,415 1,430 1,307
86 243 250 474
452
501 844
891 679
979
884
202
197 212 191
227
236 259
241 239
239
225
340
331 449 314
380
352 299
294 318
320
320
1,946
2,122
2,308 2,226
2,618
2,369 2,450
2,717 2,651
2,968
2,737
0
500
1,000
1,500
2,000
2,500
3,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Md
th/d
LDC Power Industrial Interconnects
JAN - MAR
36
2015-2016 Winter Throughput
• Peak throughput days for Winter 2015/16 – 01/11/16 3.910 MMDth
– 01/05/16 3.832 MMDth
– 02/09/16 3.736 MMDth
– January 11 was 6th highest throughput day in SNG history
– 2015-16 winter accounted for 3 of the Top 25 highest throughput days in SNG history
• Power generation daily quantities were lower than last winter but higher than average
37
Nov-Mar Throughput Comparison 2015/16
Nov – Mar
2014/15
Nov – Mar % Change
LDC 1,156 1,365 -15.3%
Power 919 945 -2.7%
Industrial 229 236 -3.2%
Interconnects 309 286 +7.9%
TOTAL 2,613 2,832 -7.7%
• All volumes are MDth/d
38
Winter Average Daily LDC Demand
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Nov Dec Jan Feb Mar
2012/13 2013/14 2014/15 2015/16
Md
th/d
39
Winter Average Daily Power Demand
0
200
400
600
800
1,000
1,200
Nov Dec Jan Feb Mar
2012/13 2013/14 2014/15 2015/16
Md
th/d
40
Atlanta Area Winter Heating Degree Days (HDDs)
HDD = 65 Degrees Minus System Mean Temperature
Actual Actual
HDDs % of Normal HDDs % of Normal
Nov 230 68% 474 140%
Dec 252 41% 456 74%
Jan 698 104% 672 100%
Feb 457 91% 683 136%
Mar 178 52% 237 69%
1815 73% 2522 109%
2015/16 2014/15
41
Operational Flow Orders (OFOs)
42
Type 3 OFO Overview Winter 2015-16
• Type 3 Operational Flow Orders (OFOs) are implemented when demand is forecasted to exceed capacity
– OFOs are used to protect primary firm services
• System conditions dictate the level of interruptible reductions and OFOs needed
• Winter 2016 constraints primarily occurred on the South System through
– East of Enterprise Compressor Station (east MS)
– East of Ellerslie Compressor Station (west GA)
43
Segment Restrictions & Type 3 OFO Factors • Factors SNG considers when evaluating whether to implement Segment Restrictions
and/or Type 3 OFO penalties: – Weather Forecast – system means in the mid-40’s and mid-80’s are where demand starts to approach
capacity
– Day of week – weekday demand exceeds weekend/holiday demand
– Expected duration of heavy demand
– Recent history
– Nominated deliveries
– Actual takes from the system higher than entitlements
• Factors considered in scheduling once Segment Restrictions or Type 3 OFO is implemented: – Contracted No Notice – doesn’t have to be nominated and forecasted usage needs to be reserved
– Receipts downstream of constraint increase SNG’s ability to deliver
– Actual takes from the system vs entitlements
– Expected duration of heavy demand
44
Maintenance Update
45
Maintenance Planning Process • Typical types of planned work
Compressors: • ESD and safety tests • Emission tests • Run-hour inspections &
maintenance to insure reliability
• Various engine/compressor repairs
Integrity Management: • Various pig runs (ILI) • Remediation of anomalies • Hydrotests • Selected wrinkle bend
replacements
3rd Party Needs: • Class location changes • Line relocations • Expansion projects Storage Field: Shut-in tests & maintenance – spring & fall
• Gas Control models impact to capacity and compares against expected flow to determine best outage windows
• Goal is to avoid impact to firm service that we forecast to be needed or coordinate with the customer(s) to manage the impact
• Plan may need to be adjusted to account for unscheduled outages, multiple outages, equipment availability, contractors, weather, and other items out of our control
46
Maintenance Communication
• Annual Maintenance Posting provided by March each year
• Updated Monthly
– Via EBB posting and Customer WebEx held prior to bid week
• Maintenance Contacts
Ganesh Venkateshan – Manager (713) – 420 – 2099 (office) (832) – 980 - 8296 (cell) [email protected]
Kal Dankovich – Outage Coordinator (713) – 420 – 7522 (office) (713) – 420 – 7305 (Gas Control) [email protected]
Jimmy Reese – Lead Controller (713) – 420 – 7310 (office) (713) – 420 - 7305 (Gas Control) [email protected]
Daniel Mitchell – Lead Controller (713) – 420 - 5874 (office) (713) – 420 – 7305 (Gas Control) [email protected]
47
2016 SNG Maintenance Program
Overview # of Jobs
System Total 922
Posted 67
Posted (with possible impact) 36
Posted (no impact expected but risks could develop)
31
South Main lines 30
North Main lines 33
Other lines 4
48
Remaining Major Projects
• Elba Express Company (EEC) Expansion project planned tie-in work – October 17-25; multiple segment outages with a full outage some days – Scheduled during low flow period and bundled projects to minimize duration
• Storage maintenance – Muldon shut in test completed (Oct 4-11) – Bear Creek shut in test Oct 18-25
• New Item: SNG is developing a repair plan for its 20” Wrens-Savannah 2nd Loop Line and is evaluating the capacity impact on Segment 580 (see Critical Notice 700476) – Line is currently at a reduced pressure
49
Getting Ready for Winter 2016-17
50
Preparing for Winter 2016-17
• Readiness testing on HP will be completed before winter
• Storage fields will be ready
• Plan is to complete maintenance projects by November
• OFO philosophy will remain consistent with past years
• Expected pipeline flows:
• Continued strong power loads
• Traditional supply basins should remain consistent with 2015-16 flows
• Weather is forecasted to be cooler than normal which will increase LDC loads
• Departmental contact information is provided in your meeting packet – do not hesitate to call us
51
Questions?
Thank You for Your Business!
52
Business Development Project Updates
Mike Varagona Vice President, Business Development
SNG Shipper Meeting
Birmingham, AL ▪ October 12, 2016
53
Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. In particular, statements, express or implied, concerning future actions, conditions or events, future operating results or the ability to generate revenues, income or cash flow or to pay dividends are forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations of Kinder Morgan, Inc. may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results are beyond Kinder Morgan's ability to control or predict. These statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others, the ability to achieve synergies and revenue growth; national, international, regional and local economic, competitive and regulatory conditions and developments; technological developments; capital and credit markets conditions; inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather conditions; environmental conditions; business and regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural products; the timing and success of business development efforts; terrorism; and other uncertainties. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking statement. Please read "Risk Factors" and "Information Regarding Forward-Looking Statements" in our most recent Annual Report on Form 10-K and our subsequently filed Exchange Act reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website at www.kindermorgan.com.
54
U.S. Energy Renaissance
• Over the past 10 years, the U.S. has seen significant growth in its energy reserves, and the potential for energy self-sufficiency has greatly improved
BUT
Shale Technology Energy Renaissance
55
Regulatory Environment is Hostile
• Aggressive opposition to almost all fossil fuel energy infrastructure development is now commonplace
• Regulators, politicians, courts – influenced/ all being affected by opposition tactics
• Permitting process filled with uncertainties
• Many projects already delayed/cancelled
– TransCanada's Keystone XL pipeline
– TGP’s Northeast Direct
– Spectra’s Constitution
• Industry efforts to counter the negative movement have thus far been ineffective
• Inevitably costs will rise and project timelines will lengthen
56
Immediate Effects Close to Home
• The SNG/EEC expansion project was filed in March of 2014 with an expected in-service of June 2016
• The project completion is now expected to occur in December of
2016 - approximately 2.75 years after the filing – a year longer than the historical norm
• The rule of thumb that a pipeline project should take approximately
12 months to permit and 9 months to construct is simply no longer a reasonable paradigm, and the timing uncertainty associated with obtaining a permit has increased significantly
57
Changing Supply and Demand
Macro View
58
Shale Gas Growth
Source: ICF International Base Case, July 2016
ICF Projection
59
Changing Demand
Source: ICF International Base Case, July 2016
60 Source: ICF International Base Case, July 2016
MIDCON 13.3 13.2 -0.1%
Changing Supply Demographics
61
Pipeline Infrastructure Response Potential Capacity Additions by Corridor
Source: Industry research
Pipeline Project ISD MMcf/d
SOUTH VIA ATLANTIC – 5.1 Bcf/d
SNG SNG/EEC Expansion 2016 409
Transco Atlantic Sunrise 2018 1,200
Transco Dalton Expansion 2017 448
Dominion Atlantic Coast 2018 1,500
EQT/NextEra Mountain Valley 2018 1,500
Pipeline Project ISD MMcf/d
EAST – 2.7 Bcf/d
AGT AIM 2016 340
Tennessee Connecticut Expansion 2017 72
AGT Atlantic Bridge 2017 153
PennEast PennEast 2018 1,000
National Fuel Northern Access 2017 497
Tennessee Invenergy 2018 180
Transco Atlantic Sunrise 2018 500
Pipeline Project ISD MMcf/d
WEST – 0.4 Bcf/d
Dominion Lebanon West Ph 2 2016 130
Tennessee Susquehanna West 2017 145
Tennessee Orion 2018 135
Pipeline Project ISD MMcf/d
MIDWEST/NORTH VIA OHIO –5.8 Bcf/d
REX Z3 Capacity Enhancement 2016 800
Spectra NEXUS 2018 1,500
Energy Transfer Rover 2017 3,500
Pipeline Project ISD MMcf/d
GULF VIA OHIO - 6.7 Bcf/d
CGT Leach Xpress 2016 1,500
TETCO Gulf Markets 2016 250
CGT Utica Access 2016 205
Texas Gas Northern Supply Access 2017 384
TETCO Gulf Markets II 2017 400
TETCO AIDAIR Southwest 2017 200
TETCO Lebanon Extension 2017 100
Tennessee Susquehanna West 2017 145
TETCO Access South 2017 320
NGPL Gulf Coast Southbound 2018 460
Tennessee Broad Run Expansion 2018 200
CGT WB Express 2018 1,300
CGT Mountaineer Express 2018 1,400
2.7 Bcf/d
0.4 Bcf/d
5.8 Bcf/d
62 Source: ICF International Base Case, July 2016
3.0
Supply to Market Corridor Flow Patterns 2015 vs. 2025
63
Elba Liquefaction Project (ELC+SLNG)
EEC Expansion (Liquefaction and Non-liquefaction)
SNG Zone 3 Expansion via EEC
SNG to South Georgia Expansion
Texas Eastern to SNG Interconnection
EEC Expansion
ELC/SLNG Liquefaction
SNG Expansion
SNG to So Ga Expansion
Texas Eastern Interconnection
SNG Related Projects in Progress
64
Expansion Drivers
• Demand growth and supply constraints east of Ocmulgee on SNG
• Export and capacity monetization opportunities for subscriber of Elba Island
65
SNG Pipeline System Neck-down East of Ocmulgee
South Main
North Main
Cypress Line
East Leg
West Leg
SESH South Georgia
1.8 bcf/d capacity
2.4 bcf/d capacity
North Louisiana
Zone 0 Zone 1 Zone 2 Zone 3
Elba Express
Ocmulgee
Gwinville
Wrens
Enterprise Elba Island
Bear Creek
Muldon
Ellerslie
66 Plot Plan
Elba Liquefaction Project
66
• Install 10 Moveable Modular Liquefaction Systems • Total Liquefaction Capacity 357,350 MMBtu/d
67
Liquefaction Project Update
• On June 1, 2016 ELC and SLNG received a favorable FERC order
• Sierra Club and two individuals filed timely requests for rehearing
• Awaiting FERC decision on rehearing
• Expect to commence construction 4th quarter
• Expected in-service mid 2018
68
EEC Pipeline A Conduit for East End Supply to SNG
South Main
North Main
East Leg
West Leg
SESH South Georgia North Louisiana
Zone 0 Zone 1 Zone 2 Zone 3
Elba Express
Pipeline
SLNG
(Elba
Island)
Bear Creek Storage
Muldon Storage
Interconnects with Transco *
Southern Natural Gas Company *
Elba Express Pipeline (North to South from Transco) • 190 Miles of Pipeline w/ 10,000 HP compression • 225 MDth/d existing firm (Transco to Savannah) • Expansion underway resulting in approximately 400 -
500 MDth/d of Zone 3 gas supply available for SNG
GLNG
69
SNG/EEC Expansion Facilities
• Expansion for 10 firm SNG customers and 6 firm EEC customers • 853,045 MMBtu/d of incremental firm • Adding over 130,000 HP at new and existing compressor stations • Adding approximately 3 miles of 36 inch loop upstream of Gallion • Adding meters, regulators, coolers and other ancillary equipment
EEC/SNG Expansions
Riceboro
Brookman
Hilliard.
Thomaston
Hartwell
Jefferson
Rincon Gallion
70
EEC and SNG Zone 3 Expansions
• In conjunction with the Liquefaction Project, the anchor shipper contracted with EEC to reverse flow and transport gas from the Transco interconnects to the Elba Island facility
– EEC (Feb 17) 190,927 MMBtu/d (liquefaction) – EEC (TBD 18) 102,100 MMBtu/d (liquefaction) – EEC (TBD 18) 142,940 MMBtu/d (liquefaction) – Total 435,967 MMBtu/d
• SNG and EEC held general open seasons in August of 2013 with a follow-up open season on SNG in March 2014
– EEC (Dec16) 175,410 MMBtu/d (6 customers) – SNG (Dec16) 216,500 MMBtu/d * (10 customers) – SNG (Jun17) 25,169 MMBtu/d * (incremental volume for 1 customer) – Total 417,079 MMBtu/d * – New Incremental 853,045 MMBtu/d – Existing Capacity 224,620 MMBtu/d – Grand Total N to S 1,077,665 MMBtu/d * Volumes reflect deliveries out of EEC into SNG
Liquefaction Related
Non - Liquefaction Related
71
Cumulative Net Volume Buildup
224,620 224,620 224,620 224,620 224,620
216,500 216,500 241,668 241,668
190,927
435,967
175,410
175,410 175,410
175,410
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Now Dec-16 Feb-17 Jun-17 TBD-18
MM
Btu
/d
Other EEC
EEC to Elba
SNG Expansion
Now EEC to SNG
Potential to flow into SNG
+391,910 +245,040
224,620
832,625
1,077,665
616,530
+190,927 Total added +853,045 MMBtu/d
807,457
+25,168
190,927
72
EEC and SNG Expansions – 2016/17/18
1. Net after turnback of 130,000 Dth/d is 611,377 Dth/d 2. SNG has subscribed for upstream capacity on EEC for these
customer volumes (plus fuel) in order to provide seamless SNG service from the Transco receipt points with EEC, through EEC to SNG delivery points
Pipeline Customer Year Dth/d Mcf/d Term EEC Shell 2017/18 435,967 427,000 23/24 EEC Effingham County Power 2016 86,000 84,231 15 EEC MGAG 2016 2,910 2,850 15
EEC BG (thru 3/2019) and SCE&G (remaining term) 2016 61,500 60,235 15
EEC Southern Company 2019 130,000 127,326 12
EEC BG (thru 3/2019) and Southern Co (remaining term) 2016 25,000 24,486 15
EEC SNG 2016 See Below Below Below Total EEC (w/o SNG) 741,377 726,128 /1
Net of turnback 611,377 598,802 Pipeline Customer Year Dth/d Mcf/d Term
SNG Weyerhaeuser 2016 2,144 2,100 10 SNG Atlanta Gas Light 2016 40,000 39,177 10 SNG PCS Nitrogen 2016 6,637 6,500 10 SNG MGAG 2016 3,574 3,500 10 SNG Peoples Gas 2016/17 50,000 48,972 20 SNG JEA 2016 55,000 53,869 15 SNG Rayonier 2016 12,763 12,500 10 SNG BASF 2016 14,131 13,840 10 SNG Southern Company 2016 25,000 24,486 15 SNG International Paper 2016 30,800 30,166 10
Total SNG Transport /2 240,049 235,110 Into SNG out of EEC 241,668 236,698
73
Seamless Service Using EEC Capacity
• To provide new FT service to its customers, SNG has contracted with EEC for FT capacity – SNG’s 10 expansion shippers have capacity from the EEC/Transco Zone
4 or 5 receipt point(s) to the shipper’s delivery point(s)
• The SNG shippers will submit nominations to SNG and SNG will nominate on EEC on their behalf (i.e., seamless service) – Shippers’ nominations will incur pancaked fuel
• EEC’s expansion fuel is estimated at 1% but will be filed soon
• For more information: – Please attend the Contracts/Capacity Release breakout session and
the Scheduling breakout session – Call your Account Manager or Scheduling Representative
74
SNG to South Georgia Expansion
Expansion • 5,096 Dth/d from TGP Rosehill to 7 Georgia municipals
– Phase 1: 3,350 Dth/d in-service 12/18/2015
– Phase 2: 1,746 Dth/d starting 12/1/2016 (target)
Scope of work • Phase I
– Cylinder mods. at Enterprise (#10)
– HP uprate at Ellerslie (#9) control work only
– 1 Regulator, pipe up-rate and mods, meter upgrade, transmitters
• Phase 2:
– Re-wheel Selma units # 1 & #2, and Auburn #3
75
New Interconnect(s)
* Interconnection initiated and reimbursed by Texas Eastern
Company County/State In-Service Date Pipe R/D Capacity Mcf/d
Texas Eastern * Attala County, MS Target 1st Qtr ‘17 SNG Receipt 160,000
New Transco Interconnect #
# Subject to an open season posted 10/12/16
76
Questions?
Thank You for Your Business!
77
NAESB & DART Updates
Gene Nowak Vice President, Transportation & Storage Services
SNG Shipper Meeting Birmingham, AL ▪ October 12, 2016
78
NAESB Update
• FERC Order 809 Rehearing 9/17/15 – NAESB 3.0 – Implemented 4/1/2016 with additional cycles and timeline adjustments – Requested NAESB to review Scheduling Processes for improvements – Final update report due to FERC next week - 10/17/16
• Multiple Gas Electric Harmonization (GEH) Forum meetings Feb-Mar 2016 – Open meetings for gas and electric participants – Education and brainstorming of ideas – results passed on to NAESB Board of Directors
• Items added by NAESB Board to Wholesale Gas Quadrant (WGQ) Annual Plan for consideration: – Confirmations – level, methods – Special Efforts nominations (optional)
• Outside of or between grid-wide timelines • Shaped flow profile • May impact all aspects of gas transactions, not just nominations
– Hourly nomination quantities – separate request but related to the Special Efforts – Communication protocols – between ISOs/LDCs/Gas Generators/Marketers
79
NAESB Update
• Ongoing meetings in WGQ – Business Practices Standards (BPS) subcommittee – Met eight times since July 2016 – Slow progress – Trying to standardize activities that currently happen without discrete
transactions (nominations/scheduling/confirmations) • Examples: Non-uniform hourly flows or early flow changes before cycle time • Happens today via a Gas Control to Gas Control communication
• Report to FERC will summarize progress with meeting notes – No standards have been developed to date
• If standards do develop – could be included in the next release (Version 3.1) – NAESB may file in late 2017 to be implemented in late 2018?
80
DART Update
• Converted three legacy systems to DART – Passkey (TGP) - October 2013 – Xpress (CIG/WIC/Ruby, et al.) - March 2015 – Premier (SNG/EEC/SLNG) - April 2016
• Last one is Passport (EPNG/Mojave) – May 2017 • Committed to continually improving DART
– Input from Customer Working Groups • Comprised of SNG/EEC interested customers
– Other KM companies using DART hold similar quarterly meetings with their customers
• Purpose is to develop consensus and prioritization of improvements to DART or other processes through collaboration, idea sharing and feedback
• Met this morning for our fifth meeting since DART went live for SNG
– One code base with the ability to customize where needed – Requested changes are prioritized based on benefit vs level of effort
81
Questions?
Thank You for Your Business!
82
Scheduling During Winter
Operations
SNG Shipper Meeting Birmingham, AL
October 12-13, 2016
83
Agenda
• Historical Constraints
• Helpful Reports to Monitor
• Segment Scheduling Review
• Scheduling Tips for Managing Your Business this Winter
• Seamless
84
SNG Pipeline System
South Main
North Main
Cypress Line
East Leg
West Leg
SESH
South Georgia 1.8 bcf/d capacity
2.4 bcf/d capacity
North Louisiana
Zone 0 Zone 1 Zone 2 Zone 3
Elba Express
Ocmulgee
Gwinville
Wrens
Enterprise Elba Island
Bear Creek
Muldon
Thomaston
85
Segment Map
86
Historically Constrained Areas
• Constraints have been consistent with years past – North Louisiana - Onward (Segment 30)
– Southeast Supply Header (SESH)
– #606700 ETC Tiger/SNG SESH
– #606400 EGT/SNG SESH
– South of Franklinton (Segment 360)
– #605500 Col Gulf/SNG Shadyside
– Enterprise Compressor Station (Segment 420)
– Ellerslie Compressor Station (Segment 490)
87
Restrictions & OFO Overview
• Factors SNG considers when evaluating whether to implement a Type 3 Operational Flow Orders (OFO) penalties: – Weather Forecast – system means in the 40’s and 80’s are where demand starts to
approach capacity – Day of week – weekday demand exceeds weekend/holiday demand – Expected duration of heavy demand – Recent history – Nominated deliveries – Actual takes from the system higher than entitlements
• Factors considered in scheduling – Contracted No Notice – doesn’t have to be nominated and forecasted usage needs to be
reserved – Receipts downstream of constraint increase SNG’s ability to deliver – Actual takes from the system vs entitlements – Expected duration of heavy demand
88
SNG EBB Provides Useful Information
89
Daily Type 3 OFO Probability Posting
90
Pipeline Condition Notice
91
Monitor Entitlement Reports
• Sent on a per cycle basis – Not just on OFO days
• ESA’s were auto-subscribed, others should be added – Report Subscriptions
• Flowing GasAdditional ReportsReport Subscriptions Available Reports. Right Click and “Add Schedule” or “Change Schedule”
– NSC057 Operator Agent Daily Entitlement Report – NSC027 Shipper Agent Daily Entitlement Report
92
Out of Cycle Nominations
• SNG will use all reasonable efforts to accommodate reallocation of supply and/or market so long as the request is made before the gas day ends
• Must be requested and approved by all parties before 9:00AM
• Communication is key
– Must be approved by SNG Gas Control
• System conditions and available capacity to be evaluated
93
SNG Retro Nom Policy
• SNG has established procedures and guidelines to ensure a non-discriminatory policy
• Reasons that are not acceptable for retro nominations: – Change of scheduled quantities that removes a potential penalty charge in an area under an
OFO – Change of supply and/or market after gas day is complete - these should be requested as out
of cycle nominations prior to end of gas day – Increase in nominations through a restricted area
• Procedure: – Email SNG Scheduling Rep within 7 days of the impacted gas day – Email should include the reason for the change and include all relevant information (Date, GID,
PIN) – The email should also include all counterparty approvals
94
95
Transport Scheduling
• Transport scheduling will be at: – The pipeline segment level for pipeline constraints – The point level for meter capacity constraints
• Contract rights will determine shipper’s priority of service through the segment and at the point
• Capacity Split screen provides scheduling priorities for submitted
nomination (Segment and Point level views) – Contractual rights are displayed at the Master level in the Contracts
screens
96
Transportation Priorities Scheduling Queue Position Capacity Reduction
Method
Primary in Path (PIP) Prorata/Entitlement
In Path (IP) Previously Scheduled Prorata/Entitlement
In Path (IP) Prorata/Entitlement
Out of Path (OP) Previously Scheduled Prorata/Nominations
Out of Path (OP) Incremental Prorata/Nominations
Downstream Delivery Service (DDS) Previously Scheduled Prorata/Nominations
Downstream Delivery Service (DDS) Incremental Prorata/Nominations
IT & AO Previously Scheduled Prorata/Rate
IT & AO Incremental Prorata/Rate
Previously Scheduled will not be bumped on ID3
97
Ranking
Receipt HPGT
Supply D
Supply C
Market 3
Receipt Trunkline
Supply B
Supply A 500
100
500
200
Upstream Ranks
Downstream Ranks
50
400
100
500
Upstream Ranks
Downstream Ranks
300
50
Contract Path
Ranks
300 DCGT
Market 2
Market 1
200
100
FGT 400 500
500
Rec Ranks
Rec Ranks
Del Ranks
Del Ranks
98
Nomination Example Through Segment 420 Constraint
Routes are assigned In Path and Out of Path priorities through a pipeline segment constraint using customer’s path ranks
In Path 3,000
Out of Path 1,000
Master Firm Contract (MFT) North Capacity 1,000 Dth South Capacity 3,000 Dth
In Path PIN 2,000
Out of Path PIN 2,000
99
Nomination Example Through Segment Constraint
SEGMENT 420
Rank 100
Rank 200
MFT Contract
MFT Contract
• Two Paths on MFT through Segment 420 • Path Ranked 100 would be assigned 2,000 In Path • Path Ranked 200 would be assigned 1,000 In Path • Path Ranked 200 would be assigned 1,000 Out of Path
2,000 Dths
2,000 Dths
Out of Path PIN
In Path PIN
100
Nomination Example Through Segment 420 Constraint
If all Out of Path was reduced to 0, the In Path Pin would be reduced by 1,000 because the contract path to this PIN was ranked lower than the contract path to the Out of Path PIN
In Path 3,000
Out of Path 1,000
Master Firm Contract (MFT) North Capacity 1,000 Dth South Capacity 3,000 Dth
IP PIN 2,000
OP PIN 2,000
101
Utilizing Flow Day Redirect
• Flow day redirect is when a shipper redirects a previously scheduled (PS) quantity through a constraint to a new PIN downstream of the constraint
• Must reduce the PS quantity at a PIN downstream of the constraint that you want to redirect gas from
• Must be on the same transportation contract that contains the PS
• Subject to new constraints that did not exist on previous cycle
• Previously scheduled quantities are not redirected by changing rank
102
Sourcing Gas on Peak Days
• Utilize receipts, including displacement, downstream of South System constraints as much as possible – Elba Island
– Dominion Carolina Gas Transmission displacement
– Transco supply via Elba Express (Seamless nominations will be covered shortly)
– Petal, Destin, and TGP-Rose Hill are downstream of segment 420 constraint
• But they are not downstream of a segment 430 or 490 constraint
– FGT- Suwannee – Up to 60,000 dth/d meter capacity, but scheduled level of flow depends on location of South Georgia loads
103
104
Scheduling Cut Queue
• From this screen shippers can review any scheduling cuts by the pipeline or transportation service provider (TSP)
105
Scheduling Cut Queue
• Enter Flow Date and Cycle, then click Retrieve
106
Scheduling Cut Queue (cont’d)
• Double click on record for detail
107
Scheduling Cut Queue Detail
This screen displays pipeline cuts by the TSP • Reason code and description will be displayed
108
Unauthorized Overrun
• Description – A transportation contract is nominated in DART and is Exceeding
its Contract MDQ (ECM)
• Most Common Cause – A rolling nomination on a transport contract that was submitted
prior to a capacity release
• How to Detect – Scheduling Cut Queue / Sched Qty for Shipper reports
– Cut code will be ECM
109
Unauthorized Overrun (cont’d)
• Scheduling Cut Queue – In the detail screen you will see the Point Scheduling location,
showing which Point the contract is at its highest quantity of ECM
• Trouble Shooting – Use the MDQ utilization screen to detect overrun – Copy the old nom, and revalidate to generate overrun nom edit
• Resolution – Capacity Recall – Nominate Explicit Authorized Overrun “AO” – Reduce nomination path through point of max overrun
110
MDQ Utilization
• Overrun Column
– Capture volumes that are in a draft batch that are truly overrun but have not been explicitly nominated as Authorized Overrun
• Nominated Overrun Column
– Capture the total amount of Authorized Overrun that is explicitly nominated on transportation contract(s)
111
MDQ Utilization (cont’d)
• MDQ-Nominated Difference (DTH)
– Will be visible for queries for any future cycle
• MDQ-Scheduled Difference (DTH)
– The column header changes from nominated to scheduled for queries of a completed scheduling cycle and the number(s) reflected are the final scheduled volumes for each transportation contract listed
112
Navigation to Capacity Split Screen
113
What is Different This Winter?
• There aren’t many differences to take into consideration this winter – There have been no significant changes in flowing gas supplies – Constraints on the South System are likely to occur at the same
locations as last winter – Constraints on the North System tend to be driven by colder
weather
• However, SNG Seamless transportation will be implemented as part of the EEC/SNG Expansion – Estimated to start in December
114
Seamless Nominations
• SNG will be a shipper on Elba Express and offer seamless service to its shippers • EEC points will be set up as Zone 3 points on SNG to accommodate ease of
nominations – Firm expansion shippers will have capacity rights through the EEC segments – If the expansion shippers are not using the capacity, then existing shippers’ nominations will
be scheduled based on queue priority up to SNG’s TD on EEC
• SNG shippers may nominate these EEC points if they add an Exhibit C to their contract • Exhibit C provides that Shippers who use the EEC capacity will pay the EEC ACA charge and EEC
fuel, in addition to SNG’s commodity charges, surcharges and fuel • FERC has required that EEC establish an incremental North to South fuel rate to support this
expansion service which we estimate to be about 1% plus LAUF – Example:
» EEC expansion fuel from Transco to Port Wentworth » Applicable SNG fuel from Port Wentworth to SNG delivery
115
For Questions and Assistance
Account Managers • Walter Coe 205-325-3708
• Lisa Guthrie 205-325-3816
• Jerry Nelson 205-325-7257
Oncall Account Manager • 1-800-315-0575
Scheduling • Gina Mabry, Manager
713-420-3685
• Scheduling Hotline 713-420-7213
Email: [email protected]
• Katie Cornutt 713-420-5648
• Veronica Esparza 713-420-5213
• Phyllis Miller 713-420-3738
• Tracy Minter 713-420-7030
• Greg Pollard 713-420-7149
• Jeremy Rainwater 713-420-6385
116
SNG Shipper Meeting Birmingham, AL
October 12-13, 2016
Contracts/Capacity Release Features and Tips
117
Agenda
• New Service Type for SNG Expansion – Different tariff rate – Exhibit C requirement
• Capacity release tips/reminders – Tips for releasing shippers – Tips for replacement shippers
• Viewing Segment Capacity • Viewing Points in the Path and Alternate Point
Requests • Viewing Available Quantity for Points
118
New Service Type for SNG Expansion
119
New Service Type for SNG Expansion Utilizing FT Capacity on EEC
• New service type utilized for seamless expansion service – All expansion shippers have executed unique masters for the service that are numbered “xxxxxx-
MFTESNG” • Expansion packages are shown as “yyyyyy-FTESNG”
– Original estimated tariff recourse rate of $14.06/Dth/month filed with certificate application • True-up filing with actual tariff recourse rate will be filed 30-60 days prior to in-service date
– MFTE Contracts require an Exhibit C to reflect agreement to pay EEC commodity (currently ACA) and fuel/L&U charges in addition to commodity charges and fuel on SNG
• Capacity release – Shippers that wish to acquire capacity from an MFTE contract must execute an MFTE master with an
Exhibit C – Releases >1 year will be capped at the zone 3 expansion recourse rate – Releases </= 1 year can exceed the zone 3 expansion recourse rate
• If any other SNG shipper would like to have the ability to nominate from the EEC/Transco receipt points on a seamless basis utilizing an existing SNG transportation contract, the shipper must execute an Exhibit C before any nominations will be accepted – Includes firm and interruptible transportation service – Exhibit C acknowledges that the shipper will pay charges that SNG incurs on EEC
• Currently ACA and fuel for EEC in addition to commodity and fuel owed to SNG
120
121
Capacity Release Tips/Reminders
122
Tips/Reminders for Releasing Shippers • Awarded offers you created in DART can be copied
– Capacity Release -> Offers -> Create offer • Copy existing offer is a right-click selection from the Create offer screen
– Everything will be copied over to the new offer except
for the Bidder Affiliation
– DART also gives you the option of copying the rate
– Don’t use the Copy offer feature if the Release Type will be different • Ex: the original release was a Zonal release and the new offer will be Primary-
to-Primary
• Offers converted from Premier cannot be copied
– Detailed procedures located on the portal page under Other Information -> Conversion to DART -> DART Contracts and Cap Rlse Training Matl.pdf
123
Tips/Reminders for Releasing Shippers (cont’d)
• FT-NN capacity can be released as FT – Releasing shipper can change the Rate Schedule on the Offer Detail screen from MFN to MFT
– Allows the replacement shipper to acquire the capacity on its MFT contract instead of MFN
124
Tips/Reminders for Releasing Shippers (cont’d)
• Troubleshooting an Invalid Offer – First thing is review the Offer Error(s)
• The Offer Errors screen is a right-click selection from the Review/Withdraw Offer screen
– Top reasons offers go Invalid • Insufficient credit line in DART for the prearranged bidder (detailed instructions on
next slide)
• Attempting to submit a release as non-biddable that’s required to go out for bid
• Bidder affiliation is blank
• Prearranged bidder fails to confirm bid prior to bid period start date/time
– Rather than delete the invalid offer and start over, try to correct the error and resubmit
125
Tips/Reminders for Releasing Shippers (cont’d)
• Detailed instructions to troubleshoot an Invalid offer due to credit – First, navigate to the Offer Error(s) screen to view the error
126
Tips/Reminders for Releasing Shippers (cont’d)
– 2 error messages. Both relate to the credit issue. • “Credit not established for bidder. The replacement shipper has been notified for package id
xxxxxx.”
• “Errors found in Prearranged Bid for this offer for package id xxxxxx”
127
– What happens now? • DART sends an automated email to the prearranged bidder and SNG credit
manager letting them know the offer is Invalid due to credit • This email instructs the bidder to contact the SNG credit manager to resolve
(phone number and email address given in the email) • Once credit is resolved, the SNG credit manager resubmits the offer on
behalf of the releasing shipper
– What should I do? (Tips for the releasing shipper) • Follow-up in a timely manner with the prearranged bidder to make sure
they have addressed the issue • Check back in DART occasionally to make sure the offer has submitted
successfully • Don’t delete the offer and start over since the prearranged bidder and SNG
credit manager have already been notified of the offer error
Tips/Reminders for Releasing Shippers (cont’d)
128
Tips/Reminders for Replacement Shippers (cont’d)
• Prearranged bidders must confirm their bid before the bid period starts (9:00 am CCT) – Bidders who have set-up the Cap Rel Bids business preference will
receive a system generated email once the offer has been submitted and is ready to be confirmed
– Bids are confirmed in DART by going to
Capacity Release -> Bids -> Confirm Bid
– Bids not confirmed in time will go Invalid
– The releasing shipper can take the invalid
offer, change the bid period, and resubmit
129
• Set-up the Cap Rel Bids business preference if you haven’t done so already – Preferences -> Business Preference
– Right-click, New. Complete the contact information and Save
– Default email address for notifications regarding bidder credit, confirm bid, match bid, and recalls
Tips/Reminders for Replacement Shippers (cont’d)
130
Viewing Segment Capacity
131
Segment Capacity
• Contracts -> Segment Capacity
• Select an Effective Date and Retrieve
• Allows the user to view the primary forwardhaul
and backhaul capacity at the beginning and end
of each segment
• Can view/sort/filter by segment, contract, service type, or by customer (if agent)
• “Save as” option to Excel
132
Viewing Segment Capacity: default display is by segment
133
Viewing Segment Capacity: can also be sorted/stacked by Contract
134
Viewing Segment Capacity: can also be sorted/stacked by Service Type
135
Viewing Points in the Path and Alternate Point Requests
136
Points in the Path
• Misc -> Points in the Path • Enter a “From Pin and “To Pin” (not contract specific) • The screen retrieves all points in the path • When applicable, the user can select the Default route or the Cypress route • Information displayed for each in-path pin:
– Pin number – Pin name – Source (Receipt), Disposition (Delivery), or Bi-directional – Zone – Segment – Line, Section, Distance
• “Save as” option to Excel
137
Points in the Path - Example 1
From PIN: 604000 To PIN: 940050 Points retrieved in these Segments:
340 350 360 370 390 410 420 430 440 460 480 490 530 560 580 615 620
138
Points in the Path - Example 2
From PIN: 660000 To PIN: 654700 Points retrieved in these Segments:
617 615 580 560 530 490 480 460 440 430 420 410 400 50 90
110 120 130
139
Alternate Point Requests
• Customers can also view points in the path on any firm transportation package from the Contracts window by right clicking and selecting “Available Cap for Alternate Locations SNG”
• In addition, customers can view points in the path on any submitted capacity release offer from the following screens: – All Offers/Awards – Create/Submit Bids – Offer Bids
• Customers can submit an alternate point request on any awarded firm transportation replacement package from the Contracts window by right clicking and selecting “Available Cap for Alternate Locations SNG”
• Requests are on a one-time basis per replacement package and can be effective any time during the term of the release – Can amend from/to multiple R and/or D points during the one-time request
140
To submit an alternate point request, select the replacement contract from the Contracts window, right click and choose Available Cap for Alternate Locations SNG
141
Select the Rqst Start Date, and then highlight the pin you wish to change. Double click in the Alternate Loc ID field to view the Alternate Location Lookup screen.
142
The Alternate Location Lookup allows the user to view in-path locations and unsubscribed capacity at each location. Select the desired alternate point and click Ok. Only locations with unsubscribed capacity greater than 0 are valid for the request.
143
Once an alternate point is selected, enter the quantity in the Rqst Qty column, right click, then select Validate
144
If the validation is successful, the request can be submitted from this screen. Upon submission, you’re consenting to the point and/or quantity changes once Pipeline approval has been granted. An email notification will be sent once the amendment has been completed.
145
Viewing Available Quantity for Points
146
Available Quantity for Points
• Contracts -> Available Quantity for Points
• Displays the primary receipt and delivery points
on master firm contracts as of a particular date
• Displays the Zone and Segment of each location
• Displays the contracted, acquired, released,
recalled, and available quantity at each location
• If the same point is on multiple contracts, there’s an option to group and display point totals
• “Save as” option to Excel
147
Available Quantity for Points (cont’d)
148
Available Quantity for Points (cont’d)
149
Questions?
Thank You for Your Business!
150
SNG Shipper Meeting Birmingham, AL
October 12-13, 2016
Imbalance Management & Billing
151
Agenda
• Imbalance Management – Imbalance Management Tools
– Payback Areas & Nominations
– Imbalance Resolution Methods
• Billing – No-Notice Service
– Zone Matrix and Maximization
• Operational Flow Orders (OFOs)
152
Imbalance Management
153
Imbalance Management Tools • Contractual Imbalance Screen
– Summary or detailed view of an imbalance by GID (Shipper’s Global company ID), Location, Day or Contract
• SNG/EEC Imbalance Agent Summary Report – Developed specifically for SNG – Summary view of imbalance for those users who are Imbalance Aggregation
Agent for other entities
• SNG/EEC Shipper Daily Imbalance Report – Daily view of Scheduled and Allocated Receipts and Deliveries, Fuel and Net
Imbalance
154
Geographical Areas
• Payback will be evaluated based on location of Payback using 6 geographical/operational areas of the pipe.
155
Nominating Payback
• Payback at the Pool PIN – 1 Sided Transaction – Requires Pooling contract – Payback from TSP (TT 03) & Payback to TSP (TT 04)
• Payback using Transportation Contract – Payback from TSP (TT 03) will be associated with a PIN representative of
Zone 0 – Payback to TSP (TT 04) will be associated with a PIN representative of
Zone 3 – Utilizes Transport Capacity (TT 03) & subject to applicable fuel (TT 04)
156
Imbalance Resolution Methods
157
Five Methods to Resolve Imbalances
• Storage on SNG
• Off-System Storage
• Trades
• Park and Loan (PAL)
• Cash-Out
158
Using Storage on SNG to Resolve Imbalances
• Settle to/from shipper’s CSS or ISS account or third-party’s CSS or ISS account – Navigate in IDart: Flowing Gas Imbal Trd (and Stor Trans) Elections
– Third-party offsets require confirmation from storage holder
– Final deadline is 17 business days at 5:00 p.m. CCT
– Results of election are applied to storage account based on when the election is received • Period 1 (around 9th of month) or Period 2 (day after trading
deadline)
159
159
160
• Storage facility must be directly connected to SNG, e.g., Petal, Leaf River, MS Hub, and agree to transfer
• Manual process outside of DART; forms available on EBB • Select “Customer Information”, then “Forms”
• Settle to/from own account or third-party account with confirmation
• Capped at the portion of Shipper’s imbalance that is < 5% Net Imbalance Percentage
• SNG and Third-Party Storage Operator will agree on transfer schedule and shipper must nominate to effectuate the inventory transfer
Off-System Storage to Resolve Imbalances
161
Using Trades to Resolve Imbalances
• Imbalances may be traded with another shipper who has an imbalance – in the opposite direction, or – in the same direction
• Process – Navigate in IDart: Flowing Gas Imbal Trd (and Stor
Trans) Imbal Trd (Stor Transfer) – No longer mandatory to post imbalance for trade
162
162
163
163
164
164
165
Using PAL to Resolve Imbalances
What is PAL
– An interruptible linepack service
– A source or disposition of gas on a nomination
– Can be used at any PIN
– Most parks and loans are discounted to a mutually agreeable market rate
– See Rate Schedule PAL in SNG’s Tariff for details
166
Typical Uses of PAL
Balancing Approved by Operations
Customers have agreed-upon limits within which they can nominate parks and loans on any given day
Price based on the flexibility and locations
Executed on Yearly, Seasonal and Monthly Terms
Term Deals Based on Market Pricing for the
date range, location and quantity
May be same day, next day, remainder of month or agreed upon future month
Determined based on system conditions
Daily Requests As operational flexibility permits on a
nondiscriminatory basis we will grant a customer’s request to park or loan at a mutually agreeable point
Can be used to resolve monthly imbalances if system conditions permit
167
Process to Request a PAL Service
• Example using imbalance resolution – Shipper has short imbalance for previous month; cashout is not
desirable this month and prefers to pay back in kind next month – Shipper requests loan to clear imbalance – SNG determines it has linepack available for loan – Shipper and SNG mutually agree on payback dates and a rate – Loan contract is executed – SNG clears imbalance with loan – Shipper nominates loan payback at the mutually agreed-to time – To initiate a PAL transaction contact Mark Wilson
• AOL IM: sonatgasman
168
Using Cash-Out to Resolve Imbalances
• Month lag invoicing
– Allows for completion of all previous imbalance settlement options
– Preliminary Cashout Calculation Report in the production month’s invoice packet
– Following month’s invoice packet displays verification of resolution on Transport Contract Volume Statement-Summary (Dth) report
169
Viewing No-Notice Activity and Storage Information
170 170
170
171
171
172
172
173
NAESB Storage Information (WIVL2031): This screen shows the storage fuel on net NN injection (1209) and Scheduled Withdrawal (2649) Net withdrawal is 1,440 X .62% = 9 Dth Storage Fuel
173
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174
175
All Contracts (WIVL5010): This screen shows the transport fuel credit of 16 (1209 X (3.16% - 1.81%)).
175
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Zone Matrix and Maximization
177
Zone Matrix
• Receipts and Deliveries allocated to IT Service are matched together
• Receipts and Deliveries to all Firm Services are matched together in service type order: AO, UAO, FT and FTNN – Within each category above Company shall match:
• Intrazone - receipts matched to deliveries in same zone
• Forward Haul – based on lowest to highest tariff rate
• Backward Haul – based on lowest to highest tariff rate
178
Zone Matrix (cont’d)
• Current Zone Matrix Order:
SNG - Zone Matrix Pathing
Commodity Settlement Rates Effective September 2013
Firm Services IT, AO & UAO
Zone Matrix Current Current Type Rec Zone Del Zone Rates Rec Zone Del Zone Rates
($/Dth) ($/Dth)
Intra-Zone 1 1 0.027 1 1 0.104 3 3 0.032 3 3 0.179 2 2 0.036 2 2 0.191 0 0 0.038 0 0 0.213
Forward Haul 1 2 0.027 1 2 0.215 0 1 0.042 0 1 0.239 2 3 0.044 2 3 0.294 1 3 0.047 1 3 0.318 0 2 0.054 0 2 0.350 0 3 0.061 0 3 0.452
Reverse Path 3 1 0.027 3 1 0.104 2 1 0.027 2 1 0.104 3 2 0.036 3 2 0.191 3 0 0.038 3 0 0.213 2 0 0.038 2 0 0.213 1 0 0.038 1 0 0.213
179
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Maximization
• Maximization is the reallocation of shipper’s overrun (AO and UAO) and IT delivered quantities to their firm reservation capacity within a zone
– This process occurs after allocations at all PINs and zone matrix has been applied
• Small Shipper MFTS and MFNS are not maximized
• Volumetric Capacity Release is not maximized
181
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182
The Zone Matrix Pathing Summary and the Maximization and Final Zone Matrix reports can be found under the Flowing Gas, then Additional Reports
182
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Operational Flow Orders on SNG
184
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185
OFO Type 3
186
OFO Type 3 Defined
• Daily Market Demand Exceeds Capacity
– Daily Entitlements Enforced due to Pipeline Conditions
– Daily Entitlements = Scheduled Deliveries + Available No-Notice (greater of after Scheduling or after Allocations)
– Specific Delivery PIN or Group of Delivery PINs
187
OFO Type 3 Has 3 Levels
• Level 1 – Correction in Flow is Needed
– Tolerance = Greater of 5% or 190 Dth
– Penalty = $ 10/Dth taken over tolerance
– Notification = 24 Hours Prior to Gas Day via Email
188
OFO Type 3 Has 3 Levels (cont’d)
• Level 2 – Prompt Correction in Flow is Needed
– Tolerance = Greater of 2% or 75 Dth
– Penalty = $ 15/Dth taken over tolerance
– Notification = 20 Hours Prior to Gas Day via Email
189
• Level 3 – Immediate Correction in Flow is Needed
– Tolerance = Greater of 2% or 75 Dth
– Penalty = $ 15/Dth taken over tolerance
– Notification = 4 or 20 Hours Prior to Gas Day via Phone
OFO Type 3 Has 3 Levels (cont’d)
190
OFO Type 3 Checks Prior to Billing
• SNG uses OFOs only to protect system integrity
• SNG performs numerous tariff-based checks within each OFO group to determine penalties – Group Check
– Operator Check
– Nomination Agent Check
– Shipper Check
– PIN Check
191
OFO Type 3 Checks
• OFO Group Check – Sum Delivery Point Entitlements for all Shippers at PINs
within the OFO group
– Increase by the Applicable Tolerance based on OFO Level
– Compare to Total Quantity Measured • If Measured > Entitlement + Tolerance
– Go to System-Wide PIN Check for all Member PINs
– Go to Operator Check for all other points
• If Measured < Entitlement + Tolerance – No Penalty Assessed
– Process Complete
192
• Operator Check within an OFO Group – Sum Delivery Point Entitlements for each Operator at PINs
within the OFO group • Systemwide operators are evaluated at all PINs subject to the OFO
– Increase by the Applicable Tolerance based on OFO Level
– Compare to Total Allocated per Operator • If Allocated > Entitlement + Tolerance
– Go to Nomination Agent Check
• If Allocated < Entitlement + Tolerance – No Penalty Assessed
– Process Complete
OFO Type 3 Checks (cont’d)
193
• Nomination Agent Check within an OFO Group – Sum Delivery Point Entitlements for each Nom Agent at
PINs within the OFO group – Increase by the Applicable Tolerance based on OFO
Level – Compare to Total Allocated per Nom Agent
• If Allocated > Entitlement + Tolerance – Go to Shipper Check
• If Allocated < Entitlement + Tolerance – No Penalty Assessed – Process Complete
OFO Type 3 Checks (cont’d)
194
• Shipper Check within an OFO Group – Sum Delivery Point Entitlements for each Shipper at
PINs within the OFO group – Increase by the Applicable Tolerance based on OFO
Level – Compare to Total Allocated per Shipper
• If Allocated > Entitlement + Tolerance – Go to Point Check
• If Allocated < Entitlement + Tolerance – No Penalty Assessed – Process Complete
OFO Type 3 Checks (cont’d)
195
• PIN Check
– If Allocated < All Entitlements + Tolerance
• No Penalty Assessed
• Process Complete
– If Allocated > All Entitlements + Tolerance
• Penalty Quantity = Allocated – (Entitlement + Tolerance)
• Penalty Amount = Penalty Quantity x Applicable Penalty $ Based on OFO Level
• Prorate to each Shipper over its Entitlement plus Tolerance
OFO Type 3 Checks (cont’d)
196
OFO Type 6
197
OFO Type 6 Defined
• Daily Imbalance Penalty – Shipper/Imbalance Aggregation Agent Imbalances
Threaten Physical or Operational Pipeline System Integrity
– Initiated for Short Imbalances due pipe, Long Imbalances due shipper, or Both • OFO posting will state the direction(s) subject to penalty
– If Net System Imbalance Test is Met, • No Penalties Assessed
198
Step 1: Calculate Net System Imbalance
• Net System Imbalance = Total Allocated Receipts to Shippers Minus Total Fuel Minus Total Allocated Deliveries to Shippers – Includes Allocated Receipts from Storage (Withdrawals) and
Allocated Deliveries to Storage (Injections)
– If Net System Imbalance is Opposite of Penalty Direction, • No Penalty Assessed
• Process Complete
– If Net System Imbalance is Same as Penalty Direction, • Proceed to Next Step
199
Step 2: Calculate Daily Net Imbalance
• Daily Net Imbalance = Allocated Receipts Minus Fuel Minus Allocated Deliveries – Includes Allocated Receipts from Storage (Withdrawals) and
Allocated Deliveries to Storage (Injections) – For each Imbalance Aggregation Agent, or – For each Shipper with no Imbalance Aggregation Agent
• If the calculated Daily Net Imbalance is Opposite of Penalty Direction, – No Penalty Assessed – Process Complete – Otherwise, proceed to the penalty calculation
200
Step 3: Calculate Tolerance
• Tolerance Quantity = Greater of 2% of Shipper’s/Agent’s Allocated Deliveries or 200 Dth
201
Step 4: Calculate Penalty Quantity
• Penalty Quantity = Daily Net Imbalance Minus Tolerance Quantity Minus Available No Notice – If Penalty Direction = Excess Deliveries/Short
Imbalances or Both Directions and Shipper/Agent is Short, • Available No Notice = Available Daily Withdrawal Quantity –
Scheduled Withdrawals – No Notice Withdrawals
– If Penalty Direction = Excess Receipts/Long Imbalances or Both Directions and Shipper/Agent is Long, • Available No Notice = Available Daily Injections Quantity –
Scheduled Injections – No Notice Injections
202
Step 5: Calculate Penalty Quantity Tiers and Charges
• Tier 1 Quantity: 0-2% of Allocated Deliveries
– If Penalty Quantity < 2% of Allocated Deliveries or
< 200 Dth,
• No Penalty Assessed
• Process Complete
– Otherwise,
• Calculate Tier 2 Quantity (See Next Slide)
203
Step 5: Calculate Penalty Quantity Tiers and Charges (cont’d)
• Tier 2 Quantity: 2-5% of Allocated Deliveries
– If Penalty Quantity < 5% of Allocated Deliveries,
• Tier 2 Quantity = Penalty Quantity
• Tier 2 Penalty Amount = Tier 2 Quantity x $ 1.00
– Otherwise,
• Tier 2 Quantity = 3% (5%-2%) of Allocated Deliveries
• Tier 2 Penalty Amount = Tier 2 Quantity x $ 1.00
• Calculate Tier 3 Quantity (See Next Slide)
204
• Tier 3 Quantity: 5-8% of Allocated Deliveries
– If Penalty Quantity < 8% of Allocated Deliveries,
• Tier 3 Quantity = Penalty Quantity – Tier 2 Quantity
• Tier 3 Penalty Amount = Tier 3 Quantity x $ 5.00
– Otherwise,
• Tier 3 Quantity = 3% (8%-5%) of Allocated Deliveries
• Tier 3 Penalty Amount = Tier 3 Quantity x $ 5.00
• Calculate Tier 4 Quantity (See Next Slide)
Step 5: Calculate Penalty Quantity Tiers and Charges (cont’d)
205
• Tier 4 Quantity: >8% of Allocated Deliveries
– Tier 4 Quantity = Penalty Quantity - Tier 2 Quantity - Tier 3 Quantity
– Tier 4 Penalty Amount = Tier 4 Quantity x $ 15.00
Step 5: Calculate Penalty Quantity Tiers and Charges (cont’d)
206
Step 6: Calculate Total Penalty Amount
• Total Penalty Amount =
Tier 2 Penalty Amount +
Tier 3 Penalty Amount +
Tier 4 Penalty Amount
207
Questions?
Thank You for Your Business!
208
SNG Shipper Meeting Birmingham, AL
October 12-13, 2016
Overview of Doing Business with SNG
209
Agenda
• Introduction to SNG – Pipeline Overview and System Map – Organization
• Basics on How to Do Business on SNG – Types of Services – How to request DART access – Setting up and/or changing Agents – Setting up User preferences – Subscribing to reports
• Nominations Overview • Viewing Measurement Information
210
SNG Operates SNG, EEC, SLNG, GLNG
South Main
North Main
East Leg
West Leg
SESH South Georgia North Louisiana
Zone 0 Zone 1 Zone 2 Zone 3
Elba Express
Pipeline
SLNG
(Elba
Island)
Interconnects with Transco *
Southern Natural Gas • Capacity = 3.9 bcf/day
Southern Natural Gas Company *
Elba Express Pipeline (pre-expansion) • 220 MMcf/d Summer (Transco to Elba Island) • 190 Miles of Pipeline Southern LNG • 11.52 Bcf MSQ; 1.575 MMcf MDWQ
GLNG
Cypress Line
211
Kinder Morgan Pipeline Management
Team for Southern Natural Gas
Mike Varagona
VP-BD
Norman Holmes
President
South Region Pipelines
Danny Ivy
VP-Gas Control
Ray Miller
VP Pipeline
Management
Tom Dender
VP-Operations
Jorge Torres
VP-Engineering
Gary Buchler
COO -Gas Pipelines
Tom Martin
President, KM Gas Pipelines
Gene Nowak
VP – Transportation &
Storage Services
Anders Johnson
VP– Gas Storage Eng.
Debbie Cone
VP – Project Mgmt
Kevin Howard
VP – Finance
Janice Parker
Commercial Director
Tom Hutchins
VP- EH&S
Birmingham office Houston office
212
Transportation & Storage Services Management Team
Gene Nowak
Vice President
Diane Jhagroo
Sr Admin Asst
Devy Traylor Charlie Bass Jr.
Manager
Business Processes
Sherri Glazebrook
Director
Scheduling
Mark Gracey
Director
Business Process
Jill Hinkle
Director – Comm.
Contract Admin
Customer contact card provides further information
213
Scheduling Team SNG, EEC, and LNG
Katie Cornutt
Rep Scheduler III
Gina Mabry
Scheduling Manager
Todd Davis
Rep Scheduler Sr. I
Veronica Esparza
Rep Scheduler III
Charlotte Hawkins
Rep Scheduler Sr. I
Phyllis Miller
Rep Sr. Scheduler II
Tracy Minter
Rep Scheduler III
Jeremy Rainwater
Rep Scheduler III
Greg Pollard
Rep Scheduler II
Ahsan Mohammad
Rep Scheduler III
Scott Sokira
Rep Scheduler III
Customer contact card provides further information
214
Business Development Team SNG, EEC, and LNG
Mike Varagona
VP-Business
Development Lynn Smith
Exec Asst
Devy Traylor Devy Traylor Manager-Bus Dev
Paul Brown Manager-Bus Dev
John McIntosh Director-Bus Dev
David Porco Manager-Bus Dev
Ryan Leahy
Manager-Bus Dev
Norman Holmes
President, South Region Barbara Cornutt
Exec Asst
Customer contact card provides further information
215
Marketing Department SNG, EEC, and LNG
Mike Rockett Tracey Nicholson
Manager
Account Svcs
Jerry Nelson
Sr Account Mgr
Darryl Outlaw
Account Director
Lisa Guthrie
Sr Account Mgr
Walter Coe
Sr Account Mgr
Alan Barksdale Jennefer
Whisenhunt Account Svcs
Sr Analyst
Renee Hyde
Manager
Account Svcs Manager
Account Svcs
Manager
Account Svcs
Norman Holmes President
South Region
Barbara Cornutt
Exec Asst
Janice Parker
Commercial
Director
Customer contact card provides further information
216
How to Become a Shipper
• Obtain a Global Identification number (GID) for your company – This number is used for all KM operated pipelines
• Provide proof of creditworthiness – Three months of surety for the service types requested
• Set up access to the DART computer system • Request a service agreement • An Account Manager and Scheduling Representative
will be assigned to assist you with your business needs
217
Firm Transportation Services
• Firm transportation service (FT) subscribed from SNG – Customer contracts for firm capacity rights from specific receipt PIN(s) to
specific delivery PINS(s)
• Firm no notice transportation service (FN) and Firm storage service (CSS) subscribed from SNG – Firm transportation is bundled with firm storage service
– The firm receipt point is at the SNG storage PIN with firm capacity to the specified delivery PIN(s)
– This service is a balancing tool to allow the Shipper to inject/withdraw automatically from its firm storage account without submitting a nomination
• Vast majority of firm capacity to AL, GA, SC, TN and FL is subscribed but SNG can evaluate the cost and rates to expand its system
218
Acquiring Firm Service From Another Shipper
• Capacity Release of FT, FN and/or CSS – Customer can acquire firm capacity from an existing firm shipper for the
term and rate bid and awarded
– SNG bills the reservation rate awarded in the bid, as well as the commodity charges related to quantities transported
• Delivered service from another Shipper – Customer arranges for a 3rd party to use its firm transportation services on
SNG to deliver gas to the customer’s meter
219
Interruptible Services
• Interruptible Transportation (IT) service – Provided to the extent capacity is available; firm service has a higher priority
• Interruptible Storage (ISS) service – Provided to the extent capacity is available; firm service has a higher priority
• Interruptible Park and Loan (PAL) service – Customers can park gas today and unpark it later when prices are higher,
or get loans of gas today and pay it back when prices are lower • This service is a gas supply tool
– PAL is sought after when gas prices are volatile
• Transportation of the gas is also required • Provided to the extent operational assets are available after scheduling higher-
priority services • Primary contact for PAL is Mark Wilson
220
Pipeline Segments are Established for each Pipeline in the DART System for Contracting and Scheduling Service
221
New Pipeline Map Details the Segments and Interconnects
Enter New SNG MAP
222
Electronic Bulletin Board (EBB) and Preference Setup
223
EBB Access and Information
• SNG’s Electronic Bulletin Board (EBB) has access to general system information
• It can be found at http://pipeline.kindermorgan.com/
• Customers can also log into the DART computer system for their proprietary information
224
Setting up DART Access
• Complete two key documents – DART System License Agreement for the desired pipeline, and – External Security Administrator (ESA) Request form(s) to administer your security needs
• A customer is advised to have two ESA representatives from its company
• Submit forms – By email to [email protected], or – By fax (832)397-4923 Attn: Mr. Jesse Battle, or – By mail to DART SYSTEM SECURITY, c/o Kinder Morgan Inc, 1001 Louisiana Street, Suite 1000,
Houston, Texas 77002 Attention: Mr. Jesse Battle
• Assistance for DART access – Business hours Mon – Fri from 7:00AM to 4:00PM (CCT)
• All inquiries received outside of these hours will be returned on the next business day
– Weekend and holiday assistance will be provided by calling the Scheduling hotline – If you need your password reset, please contact your company’s ESA(s)
225
Setting up / Changing Agents
• In DART, the Shipper has the ability to initiate and/or change Agents – The Agent can also initiate the process
• Agency authorities in DART are different than Premier – See your Account Manager to determine the agency
authorities that apply to your needs
• Changes in Agents must occur at the first of a month
226
Setting User Preferences
• To set the default pipeline and default service requester, click the + sign to the left of Preferences and then click User Preferences
227
Set User Preferences
• Select the TSP default and the Service Requester default from the drop down and click Save.
228
Add Favorites
• Right mouse click on any screen that you wish to save
• Select Add to Favorites from the pop up window
229
Suggested Favorites in DART
• Nominations: Not Submitted • Nominations: Submitted • Nominations: Buy/Sell Mismatches List • Confirmation • Capacity/End-Point Splits • Scheduled Quantity: Sched Qty Shipper • Scheduling Cut Queue • Contractual Imbalance
230
Viewing Open DART Windows
Always Available
Available w/Tab Manager On
231
Viewing Open DART Windows
•
To Set “Tab Manager”
View
232
Report Subscription
233
Report Subscription
• Customers can subscribe to certain reports that they want to receive routinely – Scheduled Quantities – Allocations – Measurement
• Supports the ability to select when you want to receive reports – Can also run reports ‘ad hoc’ as needed
• Supports reporting for Agent relationships
234
Reports
235
Report Subscription
1) Red-highlighted reports are currently subscribed
2) Select a new report and right click for more options
3) Select “Add Schedule” from pop up window
236
Report Subscription
Step 1 of 5: Select Frequency
Step 2 of 5: Select Days of the Week
237
Report Subscription
Step 3 of 5: 1) Select Svc Req and Cycle
(suggest all NAESB Cycles) 2) Press “Clear” next to Flow
Date
Step 4 of 5: Provide Contact Information
238
Report Subscription
Step 5 of 5: Confirm information and
Save your update
239
Buying and Selling Gas at Pool PINs
240
Pool PINs are Where Gas Can be Bought & Sold
241
Pool Structure Effective April 1, 2016 • Pool PINs are virtual locations on the pipeline where gas can be bought and sold • There are multiple pooling locations on SNG • One pooling contract should be sufficient to nominate gas to a Pool PIN for sale • Unlimited buys/sells at Pool PINs • Ultimately a shipper will have to nominate the gas supply for delivery from a Pool
PIN to a physical meter station • Storage also has a virtual location as a receipt or delivery PIN where gas can be
bought and sold
242
Pooling Guidelines
• All receipt PINs can be nominated to the South Louisiana Zone 0 Pool PIN
• Receipt PINs can be nominated to the Pool PIN that is in the same zone and on the same system (i.e., North or South)
• Receipt PINs on the same system can also be nominated to Pool PIN(s) in all upstream zones along the same system (i.e., North or South)
• Receipt PINs in Zone 1 can be nominated to any Pool PIN in Zone 1
• The Storage PIN can be nominated to any Zone 0 and Zone 1 Pool PIN
243
Nomination Basics in DART
244
Basic Terms and Concepts
– PIN – Point Identification Number (i.e. meter, location or point)
– GID – Global Identification (i.e. company identifier)
– Contract format – (ex. 11234-MFTSNG)
– Pipeline Segments
– Nomination Transaction Types
– Status
– Nomination Batch
– Pathed Non-threaded Model
– Additional ranking capabilities – point and path level
– Options to input nominations in DART
245
Dart Nomination Model
Receipt PIN
Delivery PIN
DART
Pathed, Non-Threaded Nomination
K = 312643-MFTSNG
Supply A
Supply C
Market B
Market D
(Path)
246
Park Withdrawal
PIN
Off Sys Supply
Buy
Loan
Pooling
Storage Withdrawal
Transport
Sell
(Disposition)
Pooling
Park
Payback (From Pipe)
(Source)
Payback (To Pipe)
Loan Payback
Storage Injection
Upstream = 2,000 Dth
Downstream = 2,000 Dth
PIN must be in balance; total Upstream volume equals total Downstream volume
DART is PIN-Centric
247
DART Transaction Type Reference Vol Type - Transaction Type Description TT Buy (Current Business) 01
Sell (Current Business) 01
Transport (Current Business) 01
Trans(Authorized Contract Overrun) 02
Payback (Imbalance Payback From TSP) 03 Payback (Imbalance Payback To TSP) 04
Injection (Storage Injection) 06 Withdrawal (Storage Withdrawal) 07 Pooling 08
Off-system Market 117 Off-system Supply 118
Park 26 Park Withdrawal 27
Loan 28 Loan Payback 29
Purchase 119 Sale 120
248
Transaction Types (TT) for Supply/Market
• General rules for nominations at the PIN level – Gas coming on or off our system directly will use off
system supply or market transaction type 117 or 118 – Buy or Sell transactions between third parties will use
transaction type 01 – Buy/Sell Mismatch is a common problem–the Appendix shows how to find them
249
Nomination Status in Dart
Status Meaning Action
Submitted/Nominated Successfully Submitted No further actions required
Not Submitted/Holding Not Submitted Holding for next available cycle
Not Submitted/Draft Not Submitted Draft Saved- Not Submitted
Not Submitted/Error Not Submitted Pending Error Correction
Not Submitted/Waiting for Approval Validated Requires Pipeline Approval
250
Reasons that a Nomination is Waiting for Approval
• EPSQ Validation
• Retro Nominations
– Solicit all upstream/downstream approvals
– Submit changes for ID2 of the gas day in question
• Pipeline rep will review request in detail and approve if acceptable
251
252
View Scheduled Quantities (Shippers)
253
View Scheduled Quantities (Shippers)
• The screen will default to the Timely cycle that is currently active in the system
– Select Beg Date and End Date
– Select Cycle
– Select your Svc Req K (Optional)
– Click Retrieve button
254
View Scheduled Quantities (Shippers)
• The screen displays scheduled quantity information — Rec/Del Sched Stat – scheduling status e.g. Confirmed or
Nominated
— R Qty Rec/Del (Variance) – difference between nominated volume and scheduled volume, if any
255
Scheduled Quantity For Shipper Matrix
• User can select two views – NAESB WGQ Basic View – displays NAESB required data elements – Expanded View - displays two additional fields; the Counter Prty Nom and RR PL Sched
• In the middle of the screen, next to Up ID and Dn ID, you will notice the GO button. If the GO button is enabled (not grayed out), shipper can click GO which will prompt the screen to show the PIN location with the upstream and downstream transactions.
256
NAESB Scheduled Quantity For Shipper Matrix – Detail Line Item
• From this screen the shipper can further review details for any PIN
– Select a specific line item (line will turn blue)
– Click Detail Line Item box
257
Measurement Information
258
Agenda
• Daily Meter Information
• Hourly, Real Time and Gas Quality Information
• Measurement Subscription Information
259
Daily Meter Information
260
Measurement Navigation
261
Volume Statement Summary Report
• Daily level report for selected flow month
• Provides the Daily Mcf, MMBtu, and Btu values
• Estimate/Actual Status indicator and Revision Indicator Flag for PPA’s
262
NAESB Measurement Info
• NAESB window
• Daily Measurement for PIN, Area Point PIN or System Wide PIN
• Provides Daily Volume totals along with scheduled quantity and variance
• Print/Export button
263
Daily Measured Quantity by Operator
• Daily meter volume information grouped by Point Operator
• Note that there is a selection of “All” for SVC Req
• Multiple locations for operator will be returned on same report
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SNG/EEC – Measurement by Meter Station Report
• Provides the measurement information for a selected gas flow date by operator
• Lists measurement information for metering locations under Area Points
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Hourly, Real Time and Gas Quality Information
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Hourly Volumes by PIN List
• Provides hourly Volume, Energy, Btu values with suspect flag and pressure base value
• Configurable summary feature for each column of data. Avg, Count, Max, Min and Sum
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Hourly Volumes by PIN List
• Graph tab
• Right clicking on chart provides copy/save and charting options
• Ability to turn available trend items on/off
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Real Time Volumes
• Single PIN view
• View current values along with yesterday totals
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Real Time Volumes
• Multiple PIN view
• Totals row is displayed at bottom of list
• Note: All PINs selection will return any non physical measurement points (Area / SW)
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Gas Analysis List
• Gas property information by gas day; averages at bottom
• Components are provided out to C10 (Decane)
• System allows for selecting more than 1 month
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Measurement Subscription Information
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Measurement Subscription Options
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Questions?
Thank You for Your Business!
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View Buy/Sell Mismatch Activity
• Can be found in two locations
• First in the Navigation Panel under Nominations folder
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View Buy/Sell Mismatch Activity
• Can also be found on the Batch List screen
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Buy/Sell Mismatches List
• The Flow Date and Cycle will default to the current date and Timely Cycle
• The form also defaults to checking the Mismatches Only box
• To view all the Buy/Sell transactions, select Show All Svc Req and then Retrieve
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Buy/Sell Mismatches List
• Double clicking into each line item will take you to the Detail Screen which displays the Counter Prty Nom associated with the transaction
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Buy/Sell Mismatches List • In this example, our counterparty Cedar Power has not submitted their sell
to match the counter-party nom for 500 Dth
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SNG Shipper Meeting Birmingham, AL
October 12-13, 2016
Customer Working Group
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Purpose of the SNG Customer Working Group
To develop consensus and prioritization of improvements to DART or other processes
through collaboration, idea sharing and feedback
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Current Customer Working Group Members
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Agenda
• Dart Area Specific Updates and Discussion
– Scheduling and Reporting
– Invoicing
• Review of Prioritized List
• SNG Process Updates and Discussion
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DART Scheduling & Reporting Update
Gina Mabry Manager, Scheduling
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Completed Items
• Sched Qty Shipper (WNVL0003) and Sched Qty Shipper Detail (WNVL0004) added a subtotal by Svc Req when “All” is indicated – Moved to Production in June 2016
• Nomination Package ID Report-WIVL9025 – Formatting has been addressed -
• Moved to Production in May 2016
– Agent issue running the report for “All” has been addressed • – Moved to Production in June 2016
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Completed Items
• Enhanced Capacity/End-Point Split with the ability to see previously scheduled priorities and path rank – Moved to Production in June 2016
• Batch list for both Submitted and Not Submitted are now in chronological order and includes an AM/PM designation. The specific sort is by nomination Beg date, cycle, then date submitted. – Moved to Production in September 2016
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In-Progress Items: Navigation Panel Re-Organization
• Navigation Panel Re-Organization
– Currently being tested and should be released into the production environment in October
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DART Scheduling & Reporting Open Discussion
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Invoicing Janice Parker
Director, Commercial
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Recent Progress
• WIVL3015, Daily Measured Quantity by Operator – Shows Mcf and Dth at the meter station level – Available to operators and parties to whom they grant access – Customers requested this be added to the invoice packet or made available via
report subscription
• October 5 - SNG made this report available through report subscription and enhanced it to run using the “statement month” – This means that the report will auto-generate for the month to be invoiced
until invoices are final – Customers can set it up to run daily, weekly or monthly – If operators only want this report once a month after the measurement is
final, SNG suggests choosing a monthly election with a date of the 8th
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Recent Progress (cont’d)
• WIVL9000, Location Operator Allocation Report – A fix was made in Sept so that no-notice allocations are picked
up properly at market-area delivery points without manual intervention
• Open Question – This report is available in report subscription but it looks at the
production month which is the DART standard – It would require agreement of all pipelines with regression
testing to change this report to look at the “statement month” – Is it a high priority request to request this change now that
WIVL3015 is available for the statement month?
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Dart Invoice Open Discussion
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Review of Last Prioritized List
Katie Cornutt
Scheduling Representative
Customer Working Group Coordinator
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Top 10 Ranked Items as of July 2016 1 Default the nominations/submitted, “Batch List” screen so that the nominations are in chronological order by date and cycle
2 Hide other pipeline screen/reports not applicable to SNG, i.e. user login should only allow user to see screens/reports applicable to
their assigned pipeline(s). For example if a user only has SNG access the program should filter out the references to other pipelines in
the “tree” pick list
3 Organize reports in a more user friendly manner. SNG reports in SNG folder , TGP reports in TGP folder.
4 Reports: Can the Reports be sorted by function? It seems like a lot of reports are thrown into the catch-all “Additional Reports.”
5 Reports: The Imbalance Agent Summary Report excludes all PIN transactions. Is there a report that reflects all of a GID’s activities
on DART so audits can be performed without needing 8 reports to “summarize” our activities?
6 Add totals to cut notices.
7 When copying a nom from previous day the path rank is not always copied.
8 Add contract mismatches to the cut notices even though it is a 1-sided. I believe it sill shows as a variance on my sched qty reports.
For the sake of continuity should be added to the cut notice as well.
9 Reports: Can Reports that are not SNG oriented be blocked somehow? When we log in, we have pipeline preference, why doesn’t
that block reports that are solely for NGPL, etc.?
10 With regard to nominations, customer submits a minimum of 2 cycles per day during normal operations, and 3-4 cycles per day
during OFO’s. This would add up to ~800+ nominations submitted during the year for our GIDs. When you pull the “Submitted”
screen, all submitted nom’s show up, and then you can filter by Beg Date/End Date/etc. It will not save however once the screen is
closed. Is there a way going forward to limit the amount of data that will show up on the “Submitted” screen prior to having to filter
(i.e. maybe start with current day + any future days - similar to Premier)?
Working with IT. New report needed.
Submitted to our IT group for completion.
Working with IT.
Did Item 1’s completion minimize this concern?
Attempting to recreate.
Done.
Done.
October 2016
October 2016.
See Enhancement for 3 & 4.
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SNG Process Updates
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Pipeline Condition Notice
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Monitor Entitlement Reports
• Sent on a per cycle basis – not just on OFO days
• ESA’s were auto subscribed, others can be added – Report Subscriptions
• Flowing GasAdditional ReportsReport Subscriptions Available Reports. Right Click and “Add Schedule” or “Change Schedule”
– NSC057 Operator Agent Daily Entitlement Report – NSC027 Shipper Agent Daily Entitlement Report
• If the ESA needs to be unsubscribed, please contact your Scheduling Representative for assistance
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Out of Cycle Nominations
• SNG will use all reasonable efforts to accommodate reallocation of supply and/or market so long as the request is made before the gas day ends
• Must be requested and approved by all parties before 9:00AM
• Communication is key
– Must be approved by SNG Gas Control
• System conditions and available capacity to be evaluated
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SNG Retro Nomination Policy • SNG has established procedures and guidelines to ensure a non-discriminatory
policy • Unacceptable reasons for retro nominations:
– Change of scheduled volumes cannot create/remove a potential penalty charge in an area under an OFO
– Change of supply and/or market after gas day is complete - these should be requested as out of cycle nominations
– Increase in nominations through a restricted area – Requests that would put any party or meter further out of balance with the pipeline
• Procedure: – Email SNG Scheduling Rep within 7 days of the impacted gas day – Email should include the reason for the change and include all relevant information(Date, GID,
PIN) – The email should also include all counterparty approvals
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Questions or Other Items?
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Next Steps
• Next Customer Working Group WebEx Meeting
– January 19th at 1:30 pm CST
– Move to Quarterly?