EP05_08Cleary_AGA

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EP05_08Cleary_AGA

  1. 1. James J. Cleary President, El Paso Western Pipelines AGA Financial Forum Scottsdale, Arizona May 8, 2006
  2. 2. Cautionary Statement Regarding Forward-looking Statements This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, including, without limitation, our ability to successfully contract, build and operate the pipeline projects described in this presentation; changes in supply of natural gas; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition, and other factors described in the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise. 2
  3. 3. Agenda Pipeline Group Overview ► Regional Supply and Market Trends ► Growth Outlook ► El Paso Western Pipelines Update ► 3
  4. 4. El Paso’s Natural Gas Pipelines ► 26% total U.S. interstate pipeline mileage Great Lakes Gas ► 36 Bcf/d capacity (25% of Transmission (50%) total U.S.) Wyoming Interstate ► Best market connectivity Colorado ► Best supply access Cheyenne Interstate Gas Plains Pipeline ► Leading pipeline integrity program Tennessee Mojave Gas Pipeline Pipeline ANR Pipeline Southern Natural Gas Elba Island LNG El Paso Natural Gas Cypress Pipeline Mexico Ventures Florida Gas Transmission (50%) 4
  5. 5. El Paso Western Pipelines Wyoming Interstate 600 miles; 2 Bcf/d Colorado Interstate Gas Cheyenne Plains 4,000 miles; 3 Bcf/d Pipeline 380 miles; 0.8 Bcf/d El Paso Natural Gas 10,600 miles; 6 Bcf/d Mojave Pipeline 400 miles; 0.4 Bcf/d 5
  6. 6. Rockies Supply vs. Regional Export Capacity MMcf/d 9,000 Rockies Express 1,800 expansion Cheyenne Plains 8,000 170 expansion 100% LF Cheyenne Plains 7,000 90% LF 560 expansion 85% LF 6,000 5,000 Expansion needed: ► 2011 if 85% LF ► 2012 if 90% LF 4,000 ► 2015 if 100% LF Supply Available for Export 3,000 2,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6
  7. 7. Arizona Gas Demand and Population Trends 0.83% 900 7,000 2.94% Year to 0.12% 0.49% 2.66% Year Gas 2.95% 11.44% Growth 800 10.46% 6,000 700 Population (1,000’s) 5.43% 5,000 18.64% 600 MMcf/d 4,000 Compound Annual 500 Growth Rates Population: 400 2000–2004: 2.69% 3,000 2005–2010: 2.49% 300 2000–2010: 2.54% 2,000 200 Total Gas Demand: 2000–2004: 11.39% 1,000 100 2005–2010: 1.40% 2000–2010: 5.45% 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Residential/Commercial/Industrial Electric Power Arizona Population 7
  8. 8. California Gas Demand and Population Trends 8,000 50,000 Year to Year Gas Growth 1.87% 2.46% 7,000 4.64% (0.09)% 2.81% (1.23)% 6.99% (1.99)% 45,000 (7.48)% (2.34)% 6,000 Population (1,000’s) 40,000 MMcf/d 5,000 4,000 35,000 Compound Annual Growth Rates Population: 3,000 2000–2004: 1.52% 30,000 2005–2010: 1.10% 2000–2010: 1.17% 2,000 Total Gas Demand: 25,000 2000–2004: (1.15)% 1,000 2005–2010: 2.33 % 2000–2010: 0.49 % 0 20,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Residential/Commercial/Industrial Electric Power California Population 8
  9. 9. California Gas Demand California Natural California Gas Demand by Gas Demand 2004 Core vs. Noncore Electric Residential Generation 23% Noncore Core 47% 68% 32% Industrial 20% Commercial 10% Source: California Energy Commission Source: California Gas Report - 2005 Supplement 9
  10. 10. WECC Regional Breakout of Installed Gas Fired MW Capacity 30,000 25,000 Since 1999: Incremental Gas Demand Added 6,130 MDth/d of 1,680 MDth/d potential new gas demand in Installed MW Capacity 20,000 980 Western Pipeline markets MDth/d 1,700 15,000 MDth/d 10,000 760 MDth/d 750 260 MDth/d 5,000 MDth/d 0 Southern Northern Arizona Pacific Southern Nevada Mountain Colorado / SE New Mexico / El California California Northwest Northwest Wyoming Paso Area Pre-1999 Capacity Capacity Additions since 1999 10
  11. 11. High Connectivity with Supply and Markets Supply Markets 345 Arizona UT ~200 Supply Receipt Points Delivery Points CO 221 Southwest Gas 43 Citizens (UNS) NV 12 APS 8 SRP 61 Other NM CA ME X. 11
  12. 12. Western Pipeline Growth Projects Completed or under construction Cheyenne Plains WIC Kanda Lateral Signed PA’s Future Projects Phase I & II Up to $137 MM $385 MM January 2008 December 2005 Up to 333 MMcf/d 755 MMcf/d WIC Piceance Pipeline $132 MM CPG Yuma Lateral March 2006 $22 MM 333 MMcf/d October 2006 49 MMcf/d Front Range WIC/CP Opal to Cheyenne Market Delivery EPNG Arizona or Greensburg Infrastructure Storage $39–$67 MM $148 MM $105 MM January 2008 2008/2009 2009/10 125 Mdth/d 350 MMcf/d CIG Raton Basin Expansions $91 MM EPNG Line 1903 2005–2008 $74 MM 170 MMcf/d December 2005 502 MMcf/d EPNG Sonora Lateral $91 MM 2009/10 800 MMcf/d 12
  13. 13. Continental Connector Project Secured significant ► commitment from Chesapeake Energy Binding open season runs ► through May 19 Began NEPA pre-filing ► process Expected design: 1 Bcf/d ► with 1Q 2008 in-service 13
  14. 14. Western Pipelines Update Favorable orders on EPNG restructuring and rate caps ► – Largely approved proposed new services – Clarified limits on applicability of 1996 rate settlement Customer settlement negotiations ongoing in ► EPNG rate case Extended effectiveness of new CIG rate case until ► January 2007 – Settlement negotiations ongoing 14
  15. 15. El Paso Western Pipelines: Conclusions Excellent supply access ► Serving growing markets ► High degree of connectivity ► Well positioned for growth ► Making good progress on rate cases and ► service restructuring 15
  16. 16. James J. Cleary President, El Paso Western Pipelines AGA Financial Forum Scottsdale, Arizona May 8, 2006

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