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- DISCOVER THE DIFFERENCE - Florida’s Natural Energy - DISCOVER THE DIFFERENCE -

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Presentation on theme: "- DISCOVER THE DIFFERENCE - Florida’s Natural Energy - DISCOVER THE DIFFERENCE -"— Presentation transcript:

1 - DISCOVER THE DIFFERENCE - Florida’s Natural Energy - DISCOVER THE DIFFERENCE -

2 Since 1961, the objective of the Florida Natural Gas Association has been to advance and promote the delivery, sale and use of natural gas, natural gas appliances, and the necessary services in Florida. With a membership of more than 100 companies, the FNGA represents every segment of the natural gas industry. It is committed to foster governmental understanding of, confidence in and cooperation with the natural gas industry.

3 Natural Gas Serving Florida Consumers Investor Owned Gas Utilities (5) Peoples Gas Florida City Gas Florida Public Utilities Sebring Gas St. Joe Gas Municipal Gas Systems (27) Gas Districts (4) Interstate Pipelines (4) Florida Gas Transmission Gulfstream Natural Gas Southern Natural Gulf South Pipeline

4 Direct Use of Natural Gas Residential –Water heating –Cooking –Space heating –Clothes drying –Pool/spa heating –Outdoor lighting and cooking Commercial –Lodging –Food Service –Health Care –Schools –Groceries –Laundries &Dry Cleaners Industrial –Citrus –Pulp/Paper –Phosphate –Gypsum Natural Gas Vehicles –Interest has grown rapidly over the past 18 months. –Our focus is on fleet vehicles.

5 Florida History of Pipeline Expansions

6 Florida Gas Transmission FGT has over 5,400 miles of pipe and a mainline system capacity of 3.1 Bcf/day Over 240 delivery points in Florida Delivery connections to over 50 electric generation plants Over 50 interconnects with interstate and intrastate pipelines Direct connections with ten major storage facilities

7 Gulfstream Natural Gas

8 Southern Natural

9 Gulf South Pipeline

10 Sabal Trail Pipeline Sabal Trail Transmission, LLC (“Sabal Trail”), a joint venture of Spectra Energy Corp and NextEra Energy, Inc. is expected to be completed May 2017. Two Component Project First part, proposed 465 mile pipeline capable of more than 1 billion bcf/day. This $3 billion Sabal Trail project will increase gas supplies to ensure Florida keeps up with future demand. Second part, the Southeast Connection, a 126 mile pipeline capable of 400 million bcf/day costing $550 million will link the Trail hub in Central Florida to FP&L generating facilities in southeast Florida. The addition of this major pipeline project will help FP&L, other Florida utilities and businesses take advantage of low-cost natural gas from across the United States. According to FP&L natural gas power plants have saved their customers more than $6 billion in fuel costs.

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12 Growing U.S. Supply Resource Shale basins are contributing to growth. 90% of gas consumed in the U.S. is produced domestically Potential Gas Committee, an independent group that develops assessments of gas resources, raised its latest estimate to over 2,689 trillion cubic feet, the highest evaluation ever and 26% more than two years ago. At least 100 years of gas supply at current consumption levels. Potential production decline in shallow Gulf of Mexico(2.4 Bcf/day) is more than offset by shale gas additions.

13 Location of Shale Gas Formations Shale resources are being actively explored today across the U.S. Shale production is expected to grow from 6.8 trillion cubic feet per year in 2011 to 7.8 trillion cubic feet per year in 2025. Access to this growing supply resource is an important aspect of Florida’s current and future natural gas supply portfolio.

14 Supply Availability & Storage Connections Pine Prairie Tres Palacios Bobcat Petrologistics Golden Triangle Spindletop Egan Napoleonville Southern Pines Bay Gas Significant supply resources, storage capacity, and pipeline delivery infrastructure have been added in the last five years and continue to grow with supplies and demand. Storage and capacity growth have positively impacted current and future natural gas supply and prices. New Supply LNG Storage Storage Additions Pipeline Capacity Additions

15 Total of 60 Stations *58 CNG *2 LNG 48 stations operating (18 public/30 private) 12 stations planned (10 public/2 private) Natural Gas Vehicles

16 LNG Rail & Water Transportation

17 Summary Florida markets have access to a vast, geographically diverse supply area U.S. reserves are growing Significant infrastructure improvements have lowered commodity prices and enhanced reliability. Long term price stability can be achieved through term contracting, hedging, and continued investment in infrastructure. Florida’s Gas Industry has a long history of expansion to meet demand growth. Natural Gas is Abundant, Affordable, Clean, and American


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