1. Florida Energy Pipeline Association
23rd Annual Summer Symposium
July 19, 2012
Berne L. Mosley, Energy Projects Consulting, LLC

2. Infrastructure Trends -- Shale Gas as a Driver
and the Associated “Ripple” Effects…
 Pipeline / Storage Impacts
Flow Changes
Rate Proceedings
Infrastructure Status
 LNG Exports
FERC Export Terminals – Status
DOE /FE Commodity Export Authorizations
Economic Impacts

3. Changes in Historic Patterns
Traditional southwest to northeast pipeline flow is changing…
 Marcellus shale is closer to the traditional market areas, thus
displacing gulf / southwest production…cheaper transportation
costs, quicker access
 Pipelines are getting FERC approval to reverse pipeline flow
to provide the ability to export shale gas to Canada
 Pipelines are experiencing low load factors in the central
parts of their systems, and many are seeking to reverse flow
and take ethane rich shale supplies to the natural gas liquids
markets in the gulf

4. Rate Proceedings
With low load factors in the central parts of their systems, some pipelines
are responding with rate / tariff changes:
 Columbia Gulf Transmission
 Tennessee Gas Pipeline Corporation
Both revised mileage-based transportation rates to “postage stamp” rates
to offset lost / diminished transportation services on their systems owing
to shale gas development.
This trend is likely to continue…

5. Infrastructure Status
Approved Pipeline Projects -- 2012
Source -- http://ferc.gov/industries/gas/indus-act/pipelines/approved-projects.asp

6. Infrastructure Status
Pending Pipeline Projects -- 2012
Source -- http://ferc.gov/industries/gas/indus-act/pipelines/pending-projects.asp

8. Infrastructure Status

9. Infrastructure Status

10. Infrastructure Status

11. LNG Terminal Status

13. DOE / Fossil Energy Commodity Exports
Applications Received by DOE/FE to Export Domestically
Produced LNG from the Lower-48 States (as of June 15,
2012)
(1) FTA – Applications to export to free trade agreement (FTA) countries. The Natural Gas
Act, as amended, has deemed FTA exports to be in the public interest and applications
shall be authorized without modification or delay.
(2) Non-FTA applications require DOE to post a notice of application in the Federal
Register for comments, protests and motions to intervene, and to evaluate the application
to make a public interest consistency determination.
Source: Office of Oil and Gas Global Security and Supply, Office of Fossil Energy, U.S.
Department of Energy

14. Economic Impacts - EIA Study January 2012*
DOE/FE provided four scenarios of export-
related increases in natural gas demand
(Figure 1) to be considered:
• 6 billion cubic feet per day (Bcf/d),
phased in at a rate of 1 Bcf/d per year
(low/slow scenario),
• 6 Bcf/d phased in at a rate of 3 Bcf/d per
year (low/rapid scenario),
• 12 Bcf/d phased in at a rate of 1 Bcf/d
per year (high/slow scenario), and
• 12 Bcf/d phased in at a rate of 3 Bcf/d
per year (high/rapid scenario).
* http://www.eia.gov/analysis/requests/fe/

15. EIA Study - Summary of Results
Increased natural gas exports lead to:
 higher domestic natural gas prices
 increased domestic natural gas production
 reduced domestic natural gas consumption
 increased natural gas imports from Canada
via pipeline.

16. Questions???

17. Contact Information:
Berne L. Mosley, President
Energy Projects Consulting, LLC
bernemosley@yahoo.com

18. Appendix

21. Applications Received by DOE/FE to Expor t Domestically
Produced LNG from the Lower-48 States (as of June 15,
2012)
Source: Office of Oil and Gas Global Security and Supply, Office of Fossil Energy, U.S.
Department of Energy

22. Applications Received by DOE/FE to Expor t Domestically
Produced LNG from the Lower-48 States (as of June 15,
2012) -- Footnotes
Source: Office of Oil and Gas Global Security and Supply, Office of Fossil Energy, U.S.
Department of Energy