dawn hub successfully meeting market growth€¦ · dawn compressor (2017) lobo d compressor (2017)...

1

Paolo Mastronardi, Manager, Business Development

November 16, 2017

Dawn Hub – Successfully Meeting Market Growth

2

Agenda

• Enbridge/Union Gas Overview

• The Value of Dawn – Defining

Liquidity

Supply & Demand at Dawn

Infrastructure Expansions

Storage Expansion

• Expansions Challenges

• Mitigation

3

Dawn

Enbridge Assets

4

Union Gas

• Major Canadian natural gas storage, transmission and distribution company based in Ontario

• Over 100 years of experience and safe service to customers

• Dawn Storage facility – largest underground storage facility in Canada

• Dawn Hub, the second most traded hub in North America

• Assets of $8.2 billion, ~1.5 million customers, ~2,300 employees

• One of Canada's Top 100 Employers 2011-2017

• An Enbridge company

1.5 Million Retail Customers

1.2Tcf

Pipeline Throughput

65,390 km / 40,630 mi Distribution Pipe

278 Bcf

Storage Capacity

4,850 km / 3,015mi Transmission Pipe

5

LIQUID

HUB

The Value of Dawn – Defining Liquidity

Storage

Gas Supply

Take Away

Buyers & Sellers

Price Discovery

Trading Activity

6

Sourcing Supply at the Dawn Hub

Winter 3.2 Bcf/d Summer 3.0 Bcf/d

Gas Supply

7

Existing Supply

New Supply

DAWN HUB

Sourcing Supply at the Dawn Hub Diversity = Reliability

Abundant and diverse natural gas serving the growing needs of the market

Gas Supply

DAWN

LTFP

NEXUS

ROVER

8

Average Daily Dawn System Demand

Take Away

Winter 4.2 Bcf/d Summer 2.4 Bcf/d

Total Peak Demand – ~ 8.7 Bcf/d

9

Brantford-Kirkwall Pipeline (2015)

Parkway West & Parkway D

Compressors (2015)

Lobo C Compressor (2016)

Hamilton-Milton Pipeline (2016)

Dawn Compressor (2017)

Lobo D Compressor (2017)

Bright C Compressor (2017)

Bluewater

St. Clair

Ojibway

Lobo

Bright

Kirkwall

Parkway

Maple

Dawn

Dawn – Downstream Connectivity Expansion Projects

Take Away

10

2015-2017 Dawn Parkway System Growth 1.2 Bcf ~85% contracted by Ontario/Québec LDCs with a 15 year term

Dawn – Downstream Connectivity Utilities Supporting Expansion

2015-2017 Expansion Capacity

Take Away

11

11 DAWN HUB

New markets and growing Dawn demand

The energy

advantage for

Eastern Canada

and U.S.

Northeast

Downstream Connectivity Growing connectivity to meet market demand

Take Away

12

• 278 Bcf – Total Storage

• 120 Bcf total merchant storage

• 5.5 Bcf Peak Day Deliverability

– 3.1 Bcf/d Union Gas

– 2.4 Bcf/d Enbridge Gas Distribution

• Storage Enhancement Projects:

– 2016/17 - 3.2 Bcf incremental storage space

– 2017/18 - ~0.2 Bcf/d of incremental deliverability

– Post 2019 – incremental space

Dawn Storage Growing to Meet Demand

Storage

13

• External Issues:

– Stakeholder requirements differ at federal, provincial and municipal levels

– Permitting process changes

• Internal Issues:

– Growth outpacing available resources

– Definition of roles and responsibilities

• Union’s multi-million expansion project faced some hurdles

Infrastructure Challenges

14

• Stakeholder outreach plan

• Development of a centralized permitting group

• Escalation process when delays occur

• Development of tools to track status

Infrastructure Challenges - Mitigation

www.uniongas.com

Questions?