British Petroleum/TransCanada


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  • TransCanada is one of North America’s leading energy companies with more than $20 billion in assets. While we are best known for our natural gas pipeline business, we are also a rapidly emerging player in the field of power generation. Our headquarters in Calgary, Alberta, and our offices across Canada and the U.S. are staffed by employees who are expert in these businesses.
  • When it comes to transporting Northern gas to market, one of our advantages is that in North America we ship the largest volumes of natural gas the longest distance in the coldest weather TransCanada: Largest Pipeline Company in North America TransCanada has been compared to its peers using a capacity-distance measure. Using this measure, the TransCanada family of pipelines is the largest in North America. The capacity-distance measure for a family of pipelines is calculated as follows: each pipeline within the family is evaluated at a pipeline segment level. the capacity of each pipeline segment (in bcf/d) is multiplied by its length (in miles) yielding a capacity-distance measure. these capacity-distance measures for each segment are summed to obtain an overall measure for the entire pipeline. to determine the total capacity-distance measure of a family of pipeline companies, the capacity-distance measure for each pipeline is multiplied by the ownership percentage in that pipeline. The sum of these ownership weighted values yields a total capacity-distance measure for a family of pipeline companies held by the parent company.
  • We also build, own, operate and invest in some of the most efficient power plants on the continent, with the majority fueled by natural gas. We own and manage power plants in Canada and the United States, including one of the largest natural gas-fired power plants in the northeast U.S. Since starting out in 1996 with 2 power plants generating 262 megawatts of power, we have aggressively grown our power portfolio. On the closing of our most recent investment in the Bruce nuclear facility -- anticipated in February 2003 -- TransCanada’s interests will encompass 18 plants with total capacity of approximately 4,150 megawatts. That’s enough power to meet the needs of over 4 million average households. With the recently announced investment in Bruce Power, we have now added nuclear and wind generation to our balanced portfolio of low-cost power generation assets. Our leading-edge expertise in the fuel-efficient process of cogeneration has made us a partner of choice for large industrial customers in developing on-site power generation. TCP is active in power asset acquisitions in Canada and the US TCP is also actively involved in short-term and long term marketing, trading and commercial development of various power markets
  • British Petroleum/TransCanada

    1. 1. Cherry Point Cogeneration Project Overview Presented to NWPPC Cogeneration Round Table June 24, 2003
    2. 2. TransCanada Corporation <ul><li>Competitively positioned in natural gas transmission & power generation services </li></ul><ul><li>$20 billion in Assets ($C at Dec 31, 2001) </li></ul><ul><li>A- Credit Rating (S&P) </li></ul><ul><li>TRP trades on the TSE and NYSE </li></ul><ul><li>Headquartered in Calgary, Alberta, Canada </li></ul>A leading North American energy company
    3. 3. TransCanada Corporation In North America, TransCanada ships the largest volumes the longest distance in the coldest weather TransCanada Williams Kinder Morgan PG&E El Paso Duke Energy Enron MidAmerican
    4. 4. TransCanada’s Power Portfolio <ul><li>19 Plants, 3 PPAs </li></ul><ul><li>4,150 MW operational </li></ul><ul><li>1,770 MW in development </li></ul>* Long Term PPA’s Bear Creek 80MW MacKay River 165MW Williams Lake 66MW Sundance A&B* 913MW Redwater 40MW Carselan d 80MW Cancarb 27MW Nipigon 40MW Calstock 35MW Kapuskasing 40MW Tunis 43MW Sheerness* 100MW North Bay 40MW Curtis Palmer 60MW Castleton 64MW Ocean State 560MW Bruce Power LP 1500MW ManChief 300MW Cherry Point 720MW Becancour 550MW Portlands 500MW - Active Plant - In Development - Market Area
    5. 5. TransCanada’s Business Drivers <ul><li>Advantaged Assets relative to CC </li></ul><ul><ul><li>Similar Economy of Scale </li></ul></ul><ul><ul><li>Similar Dispatch Flexibility </li></ul></ul><ul><ul><li>Lower Variable Costs </li></ul></ul><ul><li>Responsive to Market </li></ul><ul><ul><li>Right Timing </li></ul></ul><ul><ul><li>Right Size </li></ul></ul><ul><ul><li>Right Location </li></ul></ul><ul><li>Stable, Low Risk Growth </li></ul><ul><ul><li>Long Term contracts with credit-worthy counter parties </li></ul></ul><ul><ul><li>No surprises </li></ul></ul>
    6. 6. Cherry Point Project Overview <ul><li>720 MW Combined Cycle Cogeneration Plant </li></ul><ul><ul><li>3 F-Class gas turbines </li></ul></ul><ul><ul><li>1 Steam Turbine </li></ul></ul><ul><ul><li>Fully Dispatchable (Back-up Boilers) </li></ul></ul><ul><li>Host Site: BP Cherry Point Refinery </li></ul><ul><ul><li>225,000 bbl/d state-of-art refinery; Solomon top quartile performer </li></ul></ul><ul><ul><li>BP North America: AA credit </li></ul></ul><ul><li>Project Structure </li></ul><ul><ul><li>Long term steam and power to BP Refinery </li></ul></ul><ul><ul><li>450 MW of power to 3-P contracts </li></ul></ul><ul><ul><li>Balance of output to TC trading operations </li></ul></ul>Seattle Cherry Point Vancouver BP Cherry Point Refinery Proposed Cogeneration Plant
    7. 7. Cherry Point Project Overview (cont.) <ul><li>Exclusivity: Q4, 2002 </li></ul><ul><li>EPC Contractor Selected: Q4, 2002 </li></ul><ul><li>Site Release: Q4, 2003 </li></ul><ul><ul><li>Third party power purchase agreements (PPA’s) </li></ul></ul><ul><ul><li>EFSEC Permit </li></ul></ul><ul><ul><li>Firm Transmission Agreements </li></ul></ul><ul><li>Commercial In-Service: Q2, 2006 </li></ul>Project Schedule:
    8. 8. Cherry Point Advantages Existing Infrastructure
    9. 9. Cherry Point Advantages Minimize Environmental Impact <ul><ul><li>Reduce air emissions from Cherry Point complex </li></ul></ul><ul><ul><li>Reduce water withdrawal from Nooksack River </li></ul></ul><ul><ul><li>No new pipelines or transmission lines required </li></ul></ul><ul><ul><li>Build on existing industrial site </li></ul></ul>Cherry Point Project Rendering looking SE from Grandview Road
    10. 10. Cherry Point Advantages Competitive Price <ul><ul><li>Heat rate advantage ~ 0.7 MMBtu/MWh better than CC Savings of $2.80/MWh 1 </li></ul></ul><ul><ul><li>Ferndale pipeline tolls ~ 50% lower than Northwest Pipe Savings of $1.40/MWh </li></ul></ul><ul><ul><li>Project can be dispatched off-line to take advantage of low hydro prices </li></ul></ul><ul><ul><li>Building in “down market”; e quipment and EPC costs at lowest point in years. </li></ul></ul>1 Based on $4.00 /MMBtu gas price
    11. 11. PURPA - Qualifying Facility Status Cherry Point Cogeneration Project Fuel Input 5440 MMBtu/hr Useful Thermal Output 700 MMBtu/hr Useful Power Output 720 MWh or 2450 MMBtu/hr Useful Thermal Energy Purpa Efficiency Cherry Point 13% 51% Purpa Threshold >5% = >45% Meets Threshold  
    12. 12. Cherry Point is an Advantaged Generation Asset Cherry Point Layout, looking NE <ul><li>Heat rate advantages vs. stand-alone CC </li></ul><ul><li>Dispatchable plant </li></ul><ul><li>Economy of scale </li></ul><ul><li>Gas supply infrastructure advantages </li></ul><ul><li>Strong, committed project proponents </li></ul><ul><li>Cogen emissions offset by refinery reductions </li></ul><ul><li>Water cooled/water reuse plan </li></ul>“ The economy of scale and flexibility of a large combined cycle plant with a cogeneration heat rate”
    13. 13. The Home Stretch - Ensuring Success! <ul><li>Remaining basic success factors reside with BPA: </li></ul><ul><li>Transmission </li></ul><ul><li>Market Clarity </li></ul><ul><ul><li>BPA’s role as resource provider post-2006 </li></ul></ul><ul><ul><li>Price of BPA hydro power post- 2006 </li></ul></ul><ul><li>Innovative solutions also reside with BPA: </li></ul><ul><li>Return of Canadian Entitlement </li></ul><ul><li>Integration and dispatch of Cherry Point for BPA preference customers </li></ul>
    14. 14. Cherry Point Cogeneration Project Overview <ul><ul><ul><ul><li>For more information contact: </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Craig Martin </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Manager, Power Marketing & Development </li></ul></ul></ul></ul><ul><ul><ul><ul><li>tel: 403.920.2086 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>email: </li></ul></ul></ul></ul>