Connecting NGLs to Distant Markets

Transcription

1 Connecting NGLs to Distant Markets Mac Hummel - Vice President, NGLs & Olefins Williams Midstream

2 Agenda > Williams asset overview > Overland Pass Pipeline (OPPL) development and expansions > Midcontinent fractionation and underground storage infrastructure > Midcontinent announced NGL pipeline expansions > Implications and conclusions 2

3 NGL & Olefins assets complete Williams Midstream s value chain Ignacio Processing Plant Echo Springs Processing Plant Willow Creek Processing Plant Overland Pass Pipeline Conway Frac Conway Storage Ft. McMurray Geismar Olefins Plant 3

4 Williams Midstream s increasing NGL volumes created takeaway dilemma NGL Volumes 4

5 Many options, best solution was 5

6 Construction of new pipeline to Midcontinent OPPL was born > Construction began August 2007 > Operations commenced November 2008 Original capacity MBpd 6

7 OPPL expansion connecting the DJ > DJ lateral added July additional pump stations 7

8 OPPL expansion connecting the Piceance > DJ lateral added in July additional pump stations > Piceance lateral added October

9 OPPL expansion new pump stations > DJ lateral added in July additional pump stations > Piceance lateral added in October 2009 > Pump stations added Q and Q MBpd > Pump stations being added Q and Q and 175 MBpd, respectively 9

10 OPPL expansion - connecting the Bakken > ONEOK constructing 600 mile 12-inch Bakken NGL pipeline Construction to begin in 2012; estimated completion mid-2013 Transport 60 MBpd Expanding Bushton fractionator by 60 MBpd > OPPL adding 5 additional pump stations Increasing capacity to 245 MBpd Q in-service 10

11 Midcontinent fractionation & underground storage infrastructure Fractionation MBpd Storage MM Barrels Williams Conway Total

12 Midcontinent fractionation & underground storage infrastructure Fractionation MBpd Storage MM Barrels Williams Conway Enterprise Hutchinson - 4 Total

13 Midcontinent fractionation & underground storage infrastructure Fractionation MBpd Storage MM Barrels Williams Conway Enterprise Hutchinson - 4 ONEOK Bushton Expansion 60 - ONEOK Medford ONEOK Hutchinson ONEOK Conway - 13 Total

14 Announced NGL pipeline expansion projects Announced NGL Pipeline Expansions MBpd Projected In-Service ONEOK Sterling I 15 Late 2011 Total 15 14

15 Announced NGL pipeline expansion projects Announced NGL Pipeline Expansions MBpd Projected In-Service ONEOK Sterling I 15 Late 2011 ONEOK Arbuckle 60 Mid 2012 Total 75 MBpd 15

16 Announced NGL pipeline expansion projects Announced NGL Pipeline Expansions MBpd Projected In-Service ONEOK Sterling I 15 Late 2011 ONEOK Arbuckle 60 Mid 2012 DCP Southern Hills 150 Mid 2013 Total 225 MBpd 16

17 Announced NGL pipeline expansion projects Announced NGL Pipeline Expansions MBpd Projected In-Service ONEOK Sterling I 15 Late 2011 ONEOK Arbuckle 60 Mid 2012 DCP Southern Hills 150 Mid 2013 Texas Express Pipeline 280 Mid 2013 Total 505 MBpd 17

18 Announced NGL pipeline expansion projects Announced NGL Pipeline Expansions MBpd Projected In-Service ONEOK Sterling I 15 Late 2011 ONEOK Arbuckle 60 Mid 2012 DCP Southern Hills 150 Mid 2013 Texas Express Pipeline 280 Mid 2013 ONEOK Sterling III 193 Late 2013 Total 698 MBpd 18

19 Capital will continue to find and fund NGL infrastructure 19

20 Implications and conclusions > OPPL was timely game changer > Announced expansions in NGL takeaway are significant is nearly 700 MBpd additional capacity necessary? > Fractionation and storage implications likely > Race to the finish line time will tell > Won t be boring!! 20