National Fuel Gas Company · NYSE:NFG
National Fuel Gas — Corporate Update (January 2017)
20 slides from National Fuel Gas's corporate update, January 2017
Slide 1: Northern Access Project Update
Northern Access Project Update January 2017
Slide 2: The Home Team
The Home Team NFG is the only large, diversified public energy company headquartered in Western New York! 2,094 $5 Billion Full-Time Investments in NY & Employees Across PA since 2010 All Divisions 1,017 740,000 Union Utility accounts served Employees 1.2 million people NY .5 million people PA 2,274
Slide 3: Buffalo-Based Company Growing New York's Economy
Buffalo-Based Company Growing New York’s Economy Investing in New York Since 1902: • $1.9 billion in assets across New York corporate footprint • Operating more than 10,000 miles of pipeline in New York • Invested $892 million in Utility and Midstream infrastructure since 2008 Substantial Economic I
Slide 4: Integrated Business Model: Key to Long-term Success
Integrated Business Model: Key to Long-term Success National Fuel Gas Company (NYSE: NFG) Upstream Midstream Downstream Seneca National Fuel National Fuel Resources Gas Supply Gas Distribution Corporation Corporation Corporation Empire Pipeline, National Fuel Inc. Resources, Inc. National Fuel Gas M
Slide 5: Track Record of Infrastructure Expansion in New York
Track Record of Infrastructure Expansion in New York • Invested $578 million in new Western New York Midstream energy infrastructure since 2008 5
Slide 6: Northeast Shale Supplies Benefitting Western New York
Northeast Shale Supplies Benefitting Western New York Average Annual Customer Bill (Weather Adjusted) vs Total Natural Gas Production $2,000.00 80 $1,800.00 75 U.S. Natural Gas Production Total Annual Residential Bill $1,600.00 $1,400.00 70 $1,200.00 (Bcf/day) 65 $1,000.00 60 $800.00 $600.00 55 $400
Slide 7: Northeast Shale Supplies Benefitting Western New York
Northeast Shale Supplies Benefitting Western New York National Fuel System Power Generation NY Large Volume Industrial excluding Consumption Power Generation 12.0 Actual 70.0 11.5 60.0 50.0 11.0 BCF BCF 40.0 10.5 30.0 10.0 20.0 9.5 10.0 9.0 - 8.5 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 20
Slide 8: Northern Access Project
Northern Access Project • Jointly developed by Supply Corporation and Empire • Provide much needed transportation capacity to access new abundant and growing natural gas supply. • Provide reliable and economic supplies of energy to the North American pipeline grid, serving New York state, Northeast
Slide 9: Serving New York State Markets
Serving New York State Markets Midstream Customers Include: • National Fuel Gas Distribution Corporation • National Grid • Rochester Gas and Electric • Consolidated Edison • New York State Electric and Gas • Central Hudson • Chautauqua Utilities • Marketers serving those utilities 9
Slide 10: Substantial New York State Investment
Substantial New York State Investment Northern Access Project Investment • $455 million overall expected cost • $359 million in New York state • Four counties annual estimated total property tax: $11.8 million • Cattaraugus $4.8 million • Niagara $2.8 million • Erie $2.7 million • Allegany $1.5 mill
Slide 11: Substantial New York State Investment
Substantial New York State Investment Northern Access Project Economic Impact • $931 million direct and indirect impact • $735 million in New York state • Multiplier effect adds $476 million with ripple effect related to increased economic activity during construction phase • Jobs • Peak constructio
Slide 12: NYISO Issues Power Trends 2016
NYISO Issues Power Trends 2016 • Power plants fueled by natural gas (both gas-only & dual-fuel) provide 57 percent of New York’s total generating capacity. • Natural gas and dual-fuel projects account for more than 70 percent of proposed generating capacity. • Low natural gas prices drove record low
Slide 13: NYISO Issues Power Trends 2016
NYISO Issues Power Trends 2016 “The growing demand for natural gas by power generators, coupled with the uncertainty over the likelihood of future natural gas infrastructure expansions, raises strategic concerns over the gas system’s ability to keep pace with the needs of gas utilities serving resid
Slide 14: NY PSC Emphasizes Importance of Infrastructure
NY PSC Emphasizes Importance of Infrastructure Order Approving Electric and Gas Rate Plans in Accord With Joint Proposal (NYSEG/RG&E Case | June 15, 2016) • “Where customers are seeking to move away from propane and oil as a heating source, utilities have an obligation to serve those customers by pr
Slide 15: 2.5 Years of Extensive Project Outreach
2.5 Years of Extensive Project Outreach • 7 pre-filing public meetings (May-November 2014) • 3 FERC scoping sessions (November 2014 & May 2015) • 5 public information forums (Niagara County) • 1 meeting with Niagara County first responders • 7 facility tours for residents and elected officials • 2 m
Slide 16: Pipeline Routing
Pipeline Routing Pipeline Routed to Follow NYSEG/National Grid Overhead Power and NFGSC Pipeline Corridors to the Extent Practicable: • 78% of 69.14 miles in New York state is co-located • 100% of route field surveyed • 80% of rights-of-way secured through negotiations with landowners Reroutes to Mi
Slide 17: Compressor Station Design Enhancements
Compressor Station Design Enhancements • Commitment to low emissions: SoLoNox equipped turbines, oxidizing catalyst, vent gas recycle • Commitment to low noise: Minimal to no increase over ambient noise levels at closest residences • Extensive aesthetic treatments and minimized lighting “Due to exis
Slide 18: Environmental Assessment Overview
Environmental Assessment Overview "The FERC staff concludes that approval of the proposed project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment.” (Cover Letter) • Issued July 27, 2016 after two years of
Slide 19: Pendleton Compressor Station FERC Findings
Pendleton Compressor Station FERC Findings • Hydraulically, the Pendleton Compressor Station is necessary (Page 166) • “This site is zoned Light Industrial and permits essential services, such as the proposed natural gas infrastructure.” (Pg 167) • “This site avoids construction/pipeline replacement
Slide 20: Regulatory Status – Selected Project Filings
Regulatory Status – Selected Project Filings Federal Energy Regulatory Commission (FERC ) – Section 7 Application July 2014 Initiated FERC NEPA pre-filing process; multiple meetings with FERC Staff March 2015 Submitted FERC Section 7 Application November 2015 Amended FERC Section 7 Application Febru
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