Williams Energy Canada

Transcription

1 Williams Energy Canada Opportunities in Alberta David Chappell President, Williams Energy Canada 2012 The Williams Companies, Inc. All rights reserved.

2 Williams > Energy infrastructure company focused on connecting significant hydrocarbon resource plays to growing markets Natural gas, NGLs, Olefins Operations span from Gulf Coast to Canadian oil sands Midstream gathering and processing plants provide petrochemical feedstocks 15,000 miles of interstate natural gas pipelines deliver more than 14% of natural gas consumed in the United States > More than 100 years operating experience 2

3 Oil Sands Mine 3

4 Oil Sand 4

5 Bitumen 5

6 Bitumen 6

7 Synthetic Crude Oil 7

8 Oil sands offgas > Byproduct of upgrading bitumen is a gas (offgas) Offgas contains approximately: 20% hydrogen 40% methane 40% NGLs and olefins Sulphurs > Offgas can either be used as fuel in the upgrader or processed > Processing offgas removes higher value NGLs and olefins > Processing offgas results in significant environmental benefits Reduces CO 2 and SO 2 emissions 8

9 Williams Energy Canada Unique Process > Extract and fractionate into high value components NGLs and olefins from oil sands offgas > Only processor of oil sands coker offgas in the world Unique business, many issues in the start-up of the business Proven business model, lessons learned > Currently: extract 5 million barrels per year of NGLs and olefins Products marketed across North America reduce CO 2 emissions by ~0.2 million tonnes per year reduce SO 2 emissions by a ~2,000 tonnes per year 9

10 Oil Sands Offgas Processing Plant 10

11 Uniquely positioned to grow NGL/olefin extraction out of Fort McMurray Boreal Pipeline Area shown > Now in-service > 420 km NGL/olefin pipeline from Fort McMurray to Redwater Fractionator > 43 Mbbl/d initial capacity;125 Mbbl/d ultimate capacity with additional pump stations > Provides capacity for growth in the oil sands area > Completed under budget 2012 The Williams Companies, Inc. All rights reserved. 11

12 Redwater Olefin/NGL Fractionator > Unique fractionator for oil sands offgas products Ethane/ethylene mix Polymer grade propylene HD5 propane nc4 Alkylation feed (ic4 & butylenes) Olefinic condensate 12

13 Propylene is high value $45 Olefins production from NGLs and offgas recovery adds significant additional margin potential to the natural gas value chain $40 $35 Propylene $/MMBtu $30 $25 $20 $15 $10 $5 $0 Ethylene 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Gas Ethane Propane Crude Ethylene Propylene Note: Historical CMAI Gulf Coast pricing converted to a $/MMBtu basis 2012 The Williams Companies, Inc. All rights reserved. 13

14 Offgas ethane recovery project Offgas Ethane Project > Long-term ethane/ethylene sale to NOVA Chemicals up to 17,000 Bbls/d > De-ethanizer plus treating under construction > Expected in-service mid-year 2013 > Estimated project cost: $290MM $340MM 2012 The Williams Companies, Inc. All rights reserved. 14

15 Plenty of offgas liquids to recover today and tomorrow NGL / Olefins volume (Mbbl/d) Barrels from expansions and new upgraders (Voyageur, CNRL expansion, other) Existing barrels beyond Williams current operations (Syncrude, CNRL) Future barrels at existing Williams operations (ethane recovery from Suncor) Barrels at existing Williams operations (C3+) (Suncor) 2012 The Williams Companies, Inc. All rights reserved. 15

16 Current Alberta Petrochemical Chain NGL (Paraffin) Olefin Derivatives > Ethane Ethylene Polyethylene, ethylene glycol 16

17 Future Alberta Petrochemical Chains NGL (Paraffin) Olefin Derivatives Ethane Ethylene Polyethylene, ethylene glycol Propane Propylene Polypropylene, propylene glycol,etc. 17

18 Williams announced PDH Project > Why would Williams manufacture propylene in Alberta? Only producer of polymer grade propylene in Canada Storage, handling and distribution facilities Established PGP market presence Complimentary to Williams US PGP production Traditional Alberta propane markets disappearing Unique offgas fractionation facilities provide for high value from PDH byproduct streams Butane/butylene Ethane/ethylene 18

19 Propylene Derivatives > Williams PDH project is NOT dependant on a propylene derivative facility in Alberta > Proposed PDH plus offgas PGP is enough for two world scale propylene derivative facilities Working with global propylene derivative players 19

20 Summary > Good news story from oil sands: Valuable commodities extracted from offgas SO 2 and CO 2 emissions reduced significantly Continuing to create higher value from the products produced > Each additional business creates the opportunity for a competitive complimentary business 20

21 2012 The Williams Companies, Inc. All rights reserved.