Cook Inlet Natural Gas Storage- Natural Gas Storage Alaska Alaska 1
Presentation Agenda Presentation Agenda Presentation Agenda Presentation Agenda � CINGSA LLC � CINGSA, LLC � Purpose and Need � Gas Storage 101 � Site Selection Site Selection � Site Specifics � Customers � Q&A Q&A 2
Who is CINGSA? Who is CINGSA? • 70/30 Joint Venture • CINGSA will provide storage service to: CINGSA will provide storage service to: • ENSTAR • Chugach Electric Ch h El i • Municipal Light & Power p g 3
Project Purpose and Need Project Purpose and Need j j p p � Construct and operate a new underground Construct and operate a new underground natural gas storage facility in Kenai, Alaska � Peak winter gas demand is forecast to exceed P k d d f d delivery capability of local production – causing potential shortages g p g � Project will provide operational peaking fl flexibility and greater security of supply b l d f l � Project will enhance system reliability � Project will enhance system reliability 4
Benefits from this Project Benefits from this Project Benefits from this Project Benefits from this Project � Reliable deliverability short and long � Reliable deliverability – short and long term benefits � Less volatile pricing � Less volatile pricing � Could encourage natural gas development in Cook Inlet 5
Gas Storage 101 Gas Storage 101 g � First natural gas storage in Weland County, Ontario, y, , Canada, in 1915, 1930 in Buffalo, New York � Most commonly stored in depleted gas reservoirs, over 400 in use in North America storing 4 TCF � Geologic considerations: ◦ Porous and permeable structure t t ◦ Impermeable cap rock ◦ Well defined geologic structure W ll d fi d l i t t 6
Similar Size Storage Station and Wells Similar Size Storage Station and Wells (Charlton, MI) (Charlton, MI) 7
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Project Considerations Project Considerations j j � Minimize Social � Minimize Social � Avoid Cultural � Avoid Cultural Impacts: Resources neighborhoods, travel � Proper Waste p patterns, rights-of-way tt i ht f Disposal � Promote Positive � Protect Air Quality Economic Impacts Economic Impacts � Minimize Noise Mi i i N i (locally, regionally) � Avoid Wetlands � Preserve Local Land � Protect Fish and � Protect Fish and Use and Traditional U d T diti l Wildlife Uses � Maintain Water Quality � Avoid Floodplains 9
Decisions and Authorizations Decisions and Authorizations � State ◦ DNR, Division of Oil and Gas: Gas Storage Lease and Lease Plan of Operations ◦ DNR, Division of Mining, Land and Water: Surface Lease, Pipeline Easement and Land Classification Order ◦ DNR, Division of Coastal and Ocean Management: Consistency Determination ◦ DOA, Alaska Oil and Gas Commission: Injection Orders , j ◦ Regulatory Commission of Alaska: Tariffs ◦ DEC, Air Permit, 401 Water Quality Certification* ◦ DNR NAWCA* ◦ DNR, NAWCA* � Federal ◦ U.S. Army Corps of Engineers Wetlands Permit � Local ◦ Kenai Peninsula Borough Requirements 10
Process and Schedule Process and Schedule Process and Schedule Process and Schedule � Permitting Complete 11/2010 � Permitting Complete – 11/2010 Following RCA approval � Surface Construction – 10/2010 to 8/2012 8/2012 � Subsurface Construction – 9/2011 to 4/2012 4/2012 � Commission Withdrawal Facilities 10/2012 11
Customer Profiles Customer Profiles � ENSTAR ◦ 5 Bcf ◦ 113 Mmcfd injection ◦ 91 Mmcfd withdrawal � CEA ◦ 2.4 Bcf . c ◦ 27 Mmcfd injection ◦ 35 Mmcfd withdrawal � ML&P ◦ .6 Bcf .6 Bcf ◦ 10 Mmcfd injection ◦ 10 Mmcfd withdrawal 10 Mmcfd withdrawal 12
Questions Questions Questions Questions 13
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