5 th Annual Appalachian Gas Marcellus and Utica Production, Pricing, Takeaway, and Markets

Transcription

1 5 th Annual Appalachian Gas Marcellus and Utica Production, Pricing, Takeaway, and Markets October 15-16, 2012 * The Westin Convention Center Pittsburgh* Pittsburgh, PA Day One Monday, October 15, :45 Conference Registration and Continental Breakfast 8:45 Chairman's Welcome and Opening Remarks Jack M. Lafield, Chairman & Chief Executive Officer, Caiman Energy, LLC Natural Gas and NGL Outlook -- Production, Demand, Regulations, and Prices [Panel Discussion] 9:00 Production Outlook Marcellus and Utica Rig count in the Marcellus and Utica Rig count in the wet vs. dry gas areas Shifting volumes -- Dry to wet gas Internal rates of return across the basin How processing/fractionation infrastructure can impact growth Drilling outlook and pipeline constraints Emerging Utica Projections vs. actual o impact on market, prices, infrastructure, liquids growth o where can Utica gas move? Marcellus o growth forecasts and takeaway capacity o impacts of storage vs. production in Pennsylvania Moderator: Jennifer Robinson, Senior Energy Analyst, Bentek Energy Randy Albert, Chief Operating Officer, Gas Division, CONSOL Energy Inc. Chad L. Stephens, Senior Vice President, Corporate Development, Range Resources Corporation 10:30 Networking & Refreshment Break 11:00 Gas Prices Current Issues and Outlook Current gas prices -- Impact on production choices What are the mid-term and long-term outlooks for gas price?

2 What price makes drilling economic? Regional pricing -- How the Marcellus and Utica compare with other plays To what degree would LNG export and increase in gas-fired generation change the price picture? Jeff W. Welch, Senior Vice President, Business Development, EDF Trading NA LLC 11:30 Gas Markets Where Will All This Gas Go? LDCs o retail demand growth o oil to gas conversions o NGVs Power generation o coal to gas switching how the generation stack works in competitive markets how coal to gas switching impacts power prices o future environmental regulations effect of the outlook for environmental regulation and surrounding uncertainty on power generators impact of demand response and energy efficiency mandates/measures on demand and volatility o infrastructure requirements to serve generation how infrastructure development and locational constraints affect investment and operating decisions o what effect renewables are having on the market o impact of uncertainty on Utica/Marcellus Impact of gas on power markets o how PJM s energy and capacity markets operate o recent trends in generation switching from coal to gas o the impact of EPA and state rules on coal unit retirements and new gas build o thoughts on gas and electric market coordination. Export to Canada o changing supply flows for Eastern Canada impact of reduced supplies from Western Canada new supply o infrastructure requirements and projects o market demand and dynamics in Eastern Canada Moderator: Tim Weithman, Managing Director, NEMA Producer Services, BP Energy Company Sheree M Petrone, Vice President, Commercial Project Management Office, Constellation Paul M. Sotkiewicz, Ph.D., Chief Economist, Markets, PJM John Scarlata, Vice President, Gas Supply, PSEG Energy Resources and Trade Steve Baker, President, Union Gas Limited, A Spectra Energy Company 1:00 Luncheon 2:15 US NGL Prices Are We Moving from Market Makers to Price Takers?

3 Recent price trends A long hot summer for producers o supply growth outpacing domestic demand, for now o impact of the switch from dry gas to crude oil drilling on NGL supply Have prices seen their cycle lows? o opportunities for new markets to increase baseload NGL demand o potential timing for rebalancing of supply and demand How increased infrastructure costs impact regional NGL economics Regional price differentials o current view o possible future scenarios post infrastructure buildouts o going global the world beyond Mont Belvieu Regional focus - Marcellus and Utica NGL pricing scenarios Anne Keller, Senior Research Analyst, Wood Mackenzie 2:45 North American NGL Supply and Demand This presentation addresses the expected short, medium, and long-term impacts of increasing North American NGL supply and the likely demand responses to the dynamic supply situation. The dynamic ethane balance o regional petrochemical demand o is oversupply expected? Where will all the propane go? o cracker reconfiguration and the potential impact on propane demand o new build capacity Where do butane and natural gasoline fit in the balance? o refinery demand o diluent market Lesa Adair, Vice President & Director, Muse Stancil & Co. 3:15 Networking & Refreshment Break 3:45 Global NGL Supply/Demand Trends and the Impact on US Exports The global LPG trade Global LPG supply/demand, with emphasis on countries that could affect US exports Analysis of issues/developments that could change the global trade going forward Examples of potential export routes for US product under different scenarios Reference to other natural gas liquids including ethane and condensates Michael Panas, NGL Consultant, Poten & Partners (UK) Ltd. 4:15 State Regulatory Environment OH Response to increased interest in the Utica play PA Recent regulatory activity Impact on drilling Impact on infrastructure Kurt E. Klapkowski, Director, Bureau of Oil and Gas Planning and Program Management, Pennsylvania Department of Environmental Protection

4 Rick Simmers, Chief, Division of Oil and Gas Resources Management, Ohio Department of Natural Resources (Invited) 5:15-6:15 Wine & Cheese Networking Reception 6:15 Close of Day One Day Two -- Tuesday, October 16, :30 Continental Breakfast 8:15 Chairman's Review of Day One Jack M. Lafield, Chairman & Chief Executive Officer, Caiman Energy, LLC Infrastructure Build-out Gathering, Processing, and Fractionation 8:30 Penn Virginia Resource Partners (PVR) Acquisition and Expansion Plans Integration of $1 billion acquisition of Chief Gathering, LLC, Northeast Pennsylvania Phase III and other projects in Lycoming County in support of Range Resources and other key clients Major expansion of Wyoming system with 24 trunkline $380 MM expansion anchored with major agreements with key clients: Shell, Range, Southwestern, and Inflection Energy Capital expansion plan to build throughput to 1.5 Bcf/day by 2013 PVR gathering systems provide multiple market access, including Tennessee Gas Pipeline with Transcontinental Pipeline and others Aqua-PVR Water Services, LLC -- Joint venture to provide water supply Utica shale expansion plans Art Cantrell, Vice President, Business Development, PVR Partners 9:00 MarkWest Acquisition and Expansions in Utica and Marcellus Randy Nickerson, Senior Vice President, Chief Commercial Officer, MarkWest Energy Partners L.P. 9:30 Utica East Ohio Midstream -- Chesapeake/M3/EV Joint Venture Hear an update on the largest Utica processing and fractionation complex, announced in March Kensington cryogenic processing facility o 600 MMcfd processing capacity commitment o initial train commission May MMcfd Harrison NGL Hub Complex o fractionation capacity of 90,000 barrels per day o NGL storage capacity of 870,000 barrels

5 o rail-loading facility o train 1 commission May 2013 Expansion plans to 1 Bcfd Frank Tsuru, President & Chief Executive Officer, M3 Midstream 10:00 Kinder Morgan -- Leveraging Existing Asset Footprint into Interim and Permanent Midstream Solutions for Utica/Marcellus Rich Gas Producers Understanding the need for producers to test, delineate, and develop their acreage before having to make long-term commitments The added benefit of immediate netback value uplift Seamless transition from interim to permanent solution to ensure NGL can be taken to market One stop shopping for gathering, processing, fractionation, NGL marketing, and residue take-away capacity/markets Chris Kral, Director, Business Development, Kinder Morgan Midstream 10:30 Networking & Refreshment Break Infrastructure Build-out -- Gas and NGL Pipelines 11:00 Spectra Energy Transmission Development Activities in the Appalachian Region Spectra discusses how its strategy of matching Appalachian supplies to the markets that it serves has resulted in a number of high-value expansion projects that are currently under development. Examine projects that will utilize supplies from: o Northeast Marcellus play (NJ/NY, AIM) o Southwest Pennsylvania/West Virginia Marcellus play (TEAM 2014) o Utica shale play (OPEN, NEXT) How Marcellus/Utica producers could benefit from a new project that will connect the Texas Eastern system directly to the growing Southeast markets (Renaissance Gas Transmission project) William T. Yardley, Group Vice President, Northeast Transmission, Spectra Energy 11:30 Williams Pipeline Expansions into Northeast and Southeast Markets Williams discusses the various expansion opportunities in the Northeast and Southeast and the supply and market trends on its Transco pipeline system. Supply and demand trends on the East Coast Northeast Connector and Rockaway Lateral Serving the New York market Northeast Supply Link Bringing Marcellus supply to the Northeast Virginia Southeast Expansion project Serving the power generation market Mid-South Expansion Mid-Atlantic Connector Future project opportunities Matching incremental supply with growing markets Frank Ferazzi, Vice President and General Manager, WGP-East, Williams Gas Pipeline

6 12:00 ATEX Express Ethane Pipeline to the Gulf Coast Ethane transportation from Marcellus/Utica, with deliveries to Mont Belvieu Projected in-service date of January 2014 Initial capacity of 125 MBPD, expandable to 255 MBPD Connectivity to all Gulf Coast ethylene plants Possible transporter of propane Possible loop of ATEX to accommodate future raw make Russell Kovin, Vice President, NGLs, Enterprise Products Partners L.P. 12:30 Kinder Morgan Cochin Reversal Light Condensate Flow to Alberta Modifying Cochin to connect to Explorer Pipeline in Kankakee County, IL Additional receipt points under consideration 95,000 b/d of light condensate capacity in the U.S. In service July 2014 Open season fully subscribed with binding commitments Don Lindley, Vice President, Business Development, Products Pipeline Group, Kinder Morgan 1:00 Close of conference