2019 Customer Meeting
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TM Vector Pipeline Vector Pipeline Customer Meeting Scottsdale, Arizona October 10, 2019 TM Vector Pipeline Pete Cianci President TM Meeting Agenda Vector Pipeline • Pete – Welcome and Organizational Changes • Matt – Project and System Update – What’s Next • Dennis – Capacity Postings – Gas Purchases/Sales – QuickNom Update TM Organization Vector Pipeline Service Providers Enbridge Inc. - EGI TM Vector Pipeline Matt Malinowski Director, Market Development TM Vector Pipeline Projects TM New Interconnections Vector Pipeline N WISCONSIN MICHIGAN DTEE BWEC March 2021 ONTARIO Highland MGU-Marshall Dawn April 2019 Detroit Chicago Athens SEMCO Joliet Cassopolis Springville Nov 2019 Peoples Gas NEXUS Nov 2018 Oct 2018 Rover INDIANA June 2018 (1.45 Bcf/d meter) OHIO 8 TM Rover Interconnect Vector Pipeline • New receipt near Howell, Michigan • Meter Station Capacity-1.45 Bcf/d • Began flowing gas June 2018 • Final ramp-up to 950 MDth/d on Nov. 1, 2019 – Peak volumes over 1.0 Bcf/d – 2019 YTD average – 963 MDth/d TM Milford Junction Vector Pipeline • Modifications to allow the Vector-DTE Gas interconnection at Milford, Michigan to be bi- directional allowing for receipt of NEXUS Supply • Installed 0.6 miles, 30-inch “jumper line” to allow lower pressure receipts to flow into the inlet of Vector’s Highland Compressor • First flow in late 2018 • Allows flexibility to sell backhauls with Milford as Primary Receipt Point TM Peoples Interconnect Vector Pipeline • Peoples Gas – Smith Road Interconnect – New delivery near Manhattan, Illinois with Peoples Gas Light and Coke – 280 MDth/d metering capacity – Predominantly winter-use for supply and redelivery of Michigan storage gas – In-service Fourth Quarter 2018 TM MGU Interconnection Vector Pipeline • MGU – Marshall Interconnect – New delivery near Marshall, Michigan with Michigan Gas Utilities – 35 MDth/d metering capacity – MGU will primarily use to fill its storage field in the summer months – Annual potential for MGU transport customers into Coldwater market – In-service April 2019 TM SEMCO Interconnection Vector Pipeline • SEMCO – Cassopolis Interconnect – New delivery near Cassopolis located in Southwest Michigan – 12 MDth/d metering capacity – SEMCO will use to serve this market – In-service November 2019 DTEE Interconnect TM Vector Pipeline (Proposed) • DTE Electric – Bluewater Energy Center (DTEE-BWEC) – New 1100 MW powerplant to replace coal – Meters and short lateral to be constructed near St. Clair, Michigan – Receipt meters from Vector 42-inch mainline and DTE Gas – 180 MDth/d load – Test gas 2021 – Plant commercial in-service 2022 TM Vector Pipeline Potential Projects • Chicago/Northern Indiana Markets – Exploring growth within this region • Continue pursuing LDC Interconnects • New powerplants – Phase 2 SJEC (MISO) – 3 other announced developments close to our mainline – Coal retirements in Michigan & Indiana TM Springville Compressor Vector Pipeline • Two existing 15,000 hp Solar Mars power turbines • Bi-directional capability installed • New impellers on both gas compressors to handle wide range of flows • Modified piping for lower flows (recycle loops) • Major construction completed January 2019 TM Vector Pipeline Recent Operations Average Dth/Day Vector Pipeline 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 2,600,000 200,000 400,000 600,000 800,000 - Nov-09 Feb-10 TM May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Segmentation) and Lease Backhaul, Shorthaul, Longhaul, (Includes Canada Nov-11 Deliveries Scheduled Feb-12 May-12 Aug-12 Nov-12 U.S. Feb-13 May-13 Aug-13 Nov-13 LH Capacity (1.275) LH Capacity Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 Capacity to Dawn (1.745) to Dawn Capacity May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 TM Vector Pipeline Winter 2018/19 Michigan Winter 2018/19 System Peak – 2,969 Dth Receipts January 31, 2019 Wash 10 Bluewater DTE Gas/ NEXUS APL/NBPL Rec – 1,609 Rec – 413 St. Clair 357 1,016 171 1,438 1,193 Guardian Peoples NIPSCO SJEC Marengo & Rover CECO- CECO-Ray 662 108 516 114 Jackson Rec - 947 Hartland 245 29 102 Temperature Range – S.E. Mich. (White Lake): -13°F to -1°F 19 Vector Pipeline 100,000 200,000 300,000 400,000 500,000 600,000 Dth/d 0 1/15/2019 1/16/2019 TM 1/17/2019 1/18/2019 Jan15, 2019 toFeb 15, 2019 1/19/2019 1/20/2019 1/21/2019 1/22/2019 1/23/2019 1/24/2019 1/25/2019 JolietReceipts 1/26/2019 cold 1/27/2019 Midwest Upper Upper 1/28/2019 - 1/29/2019 front 1/30/2019 1/31/2019 2/1/2019 2/2/2019 2/3/2019 2/4/2019 2/5/2019 2/6/2019 2/7/2019 2/8/2019 2/9/2019 2/10/2019 2/11/2019 2/12/2019 2/13/2019 2/14/2019 2/15/2019 Alliance NBPL Guardian 1,000,000 1,500,000 2,000,000 2,500,000 Vector Pipeline 500,000 Dth/d 0 Nov-16 Dec-16 TM Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Storage and Pipelines Jul-17 Aug-17 Sep-17 Oct-17 from Receipts Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Rover NEXUS Joliet Stor.& Mich TM Vector Pipeline Net Deliveries to Michigan LDCs Dth/d 350,000 DTE Gas 300,000 Consumers MGU 250,000 200,000 150,000 100,000 50,000 0 Jul-18 Jul-19 Apr-18 Apr-19 Oct-18 Jan-18 Feb-18 Jun-18 Jan-19 Feb-19 Jun-19 Mar-18 Mar-19 Sep-18 Nov-18 Aug-18 Dec-18 Aug-19 May-18 May-19 Deliveries to US and TM Vector Pipeline Canadian Power plants (with Annual Average) Dth/d 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1/1/2017 4/11/2017 7/20/201710/28/2017 2/5/2018 5/16/2018 8/24/2018 12/2/2018 3/12/2019 6/20/2019 TM Vector Pipeline Historical BTU Content (Btu/cf @ St. Clair) Year Btu/cf 2012 1026 2013 1035 2014 1045 2015 1054 2016 1054 2017 1051 2018 1065 YTD 1068 TM Vector Pipeline BTU Issues • Vector’s Tariff has a maximum BTU of 1100 BTU per standard cubic foot • As BTU’s continue to climb, Vector needs to monitor all receipts for out-of-spec gas • Certain interconnecting supply pipelines have much higher BTU limits (or none) • Reduced volumes on west end of the pipeline may cause certain supply points to be shut in by Vector from time to time if Vector cannot blend gas down • NBPL – no explicit BTU limit in their Tariff TM Turbine Advisory Vector Pipeline • In August a Product Safety Advisory was issued for one engine at Highland and one at Washington • Vector immediately took the units offline – Critical Notices were issued. • IT-1 was restricted to zero however no Firm services were impacted • Both stations are now back in service – new or replacement equipment has been installed TM Vector Pipeline What’s Next for Vector TM Vector Pipeline Future Maintenance • Vector is required to perform its seven-year inline inspections in 2020 per PHMSA regulations • Plan is to perform work in late spring (April and May) • Specific dates will be posted as the details for this job become known. Goal is to post the specific dates late in fourth quarter of 2019 TM Expansion Vector Pipeline • Michigan-Dawn and Michigan-Chicago spreads are strong during the winter months • Eastbound Expansions: – Vector can expand eastbound capacity from MI storage, Michigan supply or Joliet to Dawn with the addition of loop and compression. – These same expansions also increase our westbound capacity (MI Storage to Joliet markets) • Compression can be modified or added at Joliet to deliver MI supply / MI storage services to markets west of Chicago (Northern Border markets) TM Expansion Facilities Vector Pipeline N WISCONSIN MICHIGAN Belle River compression Loop west of ONTARIO Highland comp. Dawn Loop and Chicago Athens compression at Wash. station Joliet Springville Joliet compression for westbound delivery INDIANA OHIO 30 TM Vector Pipeline Dennis Scheibe Manager, Transportation Services Capacity Posting TM Vector Pipeline by Segments Chicago Markets Joliet PGL Crown Nexus/ Mich. Belle Dawn Point Rover Stor. River Forward Haul Zone 1 Joliet to Milford Milford to Dawn “Longhaul” – lesser of Joliet to Milford or Milford to Dawn Chicago Markets Joliet PGL Crown Nexus/ Mich. Belle Dawn Back Haul Point Rover Stor. River Milford to Joliet TM Example of Capacity Posting Vector Pipeline Select Capacity Availability TM Vector Pipeline Winter 2019/20 Backhauls to Joliet Available from Storage Sold out! from Milford 70,000 Delivery Point Available Crown Point 515,000 Peoples Gas 120,000 Guardian 35,000 TM Winter Forward Spreads from Michigan Vector Pipeline October 4, 2019 19/20 20/21 MichCon to Dawn $0.271 $0.170 MichCon to Chicago $0.281 $0.222 MichCon to Ventura $0.739 $0.635 Contract Path / Secondary TM Vector Pipeline Points • Contract and flow patterns may limit Shippers’ abilities to flow to secondary out-of-path points • Secondary In-path: Between primary receipt and primary delivery and in the same direction at contract rate • Secondary Out-of-Path: Outside of the primary receipt or delivery and/or in the opposite direction of the primary path.