In reviewing some of the MUM presentations, I want to identify some key information in order to provide overview of the conference.
Crestwood Midstream – Edmund Knolle
• NE Marcellus reserves will supply the region for generations.
• More infrastructure required to bring regional gas to regional markets
• NE market demand will grow significantly over next 10 years driven by coal retirements and new gas fired power plants sited near low cost reserves
• Increased regional use of natural gas for electric generation will increase short term volatility and the need for regional liquidity and balancing services
Navigator Energy Services – John O’Shea
• Producer Budgets 2015
o Cabot +4.3%
o Southwestern +8.3%
o EQT +4.2%
o Range (18.2%)
o Rex (44.4%)
o Antero (41.0%)
Kinder Morgan – Karen Kabin
Kinder Morgan Projects
• Utopia East – 330 miles, 12”
o Ethane/Ethane Propane Mix
o Harrison County, OH to Windsor Ontario
o January 1, 2018 in-service
• Utopia West – 450 miles, 12”
o Natural Gasoline (Diluent)
o Harrison County, OH to Illinois
o January 1, 2018 in-service
• Utica Marcellus Texas Pipeline
o Purity NGL’s, mixed NGL’s, Condensate to the U.S. Gulf Coast
o TPG Station
o 155 miles new build in the Appalachian Basin
o 1005 miles of conversion
o 200 miles new build from TPG Station 40
o Mont Belvieu fractionation and dock access
Blue Racer Midstream – William Scott
• BRM (Current Assets)
•647 miles of gathering pipeline
•400 MMcf/d of processing capacity
•47,000 Bbls/d of frac capacity
•2,500 Bbls/d of condensate capacity
•133 miles of NGL and condensate transportation
• BRM (Assets Under Construc7on)
•200 miles of gathering pipeline
•400 MMcf/d of processing capacity
•76,000 Bbls/d of frac capacity
•32 miles of NGL and condensate transportation
• Natrium Complex
o Natrium I Processing & Fractionation became fully operational in May 2013
o Natrium II Processing Plant (200 MMcf/d) became fully operational in April 2014
Location: Ohio River in West Virginia
Resources: Two 200 MMcf/d cryogenic processing plants (400 MMcf/d of Processing Capacity)
Fractionation: 123,000 Bbls/d (Q3 2015)
• 2,500 Bbls/d of onsite stabilization
• Rail, trucking and Barge(under construction)
o Residue takeaway options
o Liquids handling options
NGL’s
Condensate
• Berne I & II
o Location: NW Monroe County, Ohio
o 400 MMcf/d under construction
Berne I: 200 MMcf/d cryogenic processing plant that is mechanically complete with an operation date of Q1 2015
Berne II: 200 MMcf/d cryogenic processing plant with expected Q2 2015 completion
o Site can accommodate a third plant
o Residue Takeaway: Currently TETCO
• Liquids Handling: NGLs
• Condensate ]-‐Both to Natrium through 8” & 10” pipelines
• The Utica: Challenges Ahead
o The next two years is pivotal
Bulk of natural gas infrastructure decisions made
Decisions based on the supply/demand needs
Inadequate infrastructure to meet supply
o Higher upfront costs with new pipeline projects
Promotes potential JVs with midstream companies
o To alleviate those challenges
Midstream companies such as Blue Racer will continue to increase their gathering and processing capacity over the next 10 years to meet the supply
• An estimated ~ $30billion will need to be spent on infrastructure development to meet the supply
Joseph Barone
President
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610.764.1232
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