Spectra Energy Transmission Carbon Management

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Spectra Energy TransmissionCarbon Management

• Gary Weilinger
• Vice President, Spectra Energy Transmission
• President, BC Pipeline and BC Field Services
  Divisions
• February 26, 2008

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Western Canadian FootprintLargest Natural Gas
Processor in Canada
BC Field Services Miles of Raw Gas Gathering
1,638 Processing Capability (raw gas) 2.0 Bcf/d
Service area BC, Northwest Territories
Midstream Spectra Energy Income Fund Miles of
Raw Gas Gathering 1,000 Processing Capacity
0.9 Bcf/d Service Area BC, Alberta
BC Pipeline Miles of Pipeline 1,771 Capacity
2.2 Bcf/d Major Markets British Columbia,
Pacific Northwest
Natural Gas Liquids Empress System NGL
Extraction Capacity 2.4 Bcf/d NGL
Fractionation Capacity 57,000 bbl/d NGL
Storage Capacity 4.1 MM bbl/d Miles of Pipe
580 Major Markets Western Canada, Northern US
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Climate ActionNatural Gas is Part of the Solution

• Natural gas is part of the solution to climate
  change
• Cleaner burning than other fossil fuels (oil
  coal), producing less greenhouse gas per unit
  energy released
• Natural gas combustion produces about 30 less
  CO2 than fuel oil and about 45 less than coal
• Robust supply position
• 58 trillion cubic feet of natural gas reserves
  (2006)
• A huge economic engine in Western Canada
• Industry expenditures of 5 billion in BC alone
• Revenues fund a host of health, education and
  social programs
• Natural gas is an effective bridge fuel to a
  lower carbon world
• Mature, reliable, efficient and safe
  infrastructure footprint
• Spectra Energy has been a leader in climate
  change investment

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Spectra Energy TransmissionCanadian Emissions

• Overall, Spectra Energy Transmissions Canadian
  emissions are approximately 6-7 million tonnes
  per year
• SET Wests emissions represent 90 of this total
• SET West is focused on bringing innovation to
  industrial processes to reduce emissions

Formation CO2 is naturally-occurring CO2
contained within raw natural gas supplies in
British Columbia
Union Gas (Ontario)
Natural Gas Processing (Formation CO2)
Carbon Capture Storage
Spectra Energy Transmission West
Natural Gas Processing (Combustion CO2)
Natural Gas Transmission
Compressor Replacements Waste Heat Recovery
Natural Gas Gathering
Maritimes Northeast Pipeline (Atlantic Canada)
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Leaders in Climate ActionMajor Emissions
Reductions on Mainline Pipeline

• Massive jet-like compressor engines push
  natural gas through the BC mainline pipeline from
  supply source to market
• Since 2000, absolute mainline transmission
  emissions have been cut in half
• 500,000 tonne reduction equivalent to 125,000
  flights from New York to Paris
• Additional NOX benefits
• Savona compressor turbine change-out reduced NOX
  from 382 tonnes in 2003 to 34 tonnes in 2006
• Investment allows fewer hours of compressor
  operation in sensitive Lower Fraser Valley
  airshed
• 170 million in capital expenditures made to
  achieve
• Forward-looking investments required due to
  long-life cycle of infrastructure

Station 7 (Savona)
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Leaders in Climate ActionGreen Power from
Existing Infrastructure

• Spectra Energy Transmissions Compressor Station
  6A (150 Mile House) and Station 7 (Savona) will
  capture waste heat to generate 10 MW of
  electricity (under development)
• Enough power to support more than 10,000
  homes/year 
• 70 million investment
• Waste heat recovery process needs no fuel or
  water and creates zero emissions
• Equivalent to greenhouse gas emissions reductions
  of 25,000 tonnes each year (9,000 cars/year)

Station 6A (150 Mile House)
Station 7 (Savona)
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Leaders in Climate ActionKwoen Facility
Delivering Reductions since 2003

• Upon completion in 2003, Kwoen became North
  Americas largest CCS/AGR operation, reinjecting
  100,000 tonnes of CO2 per year
• Five times the size of typical CCS projects
  currently in operation
• To date, emissions reductions of almost 1 million
  tonnes
• Expansion completed in 2007 to increase emissions
  reductions to 130,000 tonnes of CO2 per year
• First Canadian CCS facility to incorporate GHG
  emission reduction monitoring, measurement and
  verification principles from the design stage
  through to implementation
• First AGR/CCS project to include a unique
  electronic application to monitor and measure CO2
  reductions in a verifiable manner and allocate
  reductions to customers
• First commercial site to employ Morphysorb
  process for treatment of unprocessed natural gas,
  reducing the volume of fuel gas needed at the
  plant

Kwoen Gas Plant Construction
Kwoen Gas Plant Operations
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Climate Change ActionWorld Leader in Carbon
Capture and Storage

• Intergovernmental Panel on Climate Change
  recognized Spectra Energy Transmission as a world
  leader in carbon capture and storage
• SET West existing CCS projects remove 229,000
  tonnes of C02/year
• Equivalent to 80,000 cars/year
• SET West has identified further carbon capture
  and storage potential to eliminate 1 million
  tonnes of C02/year

CO2 Injection Activities IPCC Carbon Dioxide
Capture and Storage Report (2005)
SET West CCS Projects Kwoen 130 KT
CO2/yr Jedney 1 20 KT CO2/yr Jedney 2
23 KT CO2/yr Brazeau 31 KT
CO2/yr Gordondale 11 KT CO2/yr Pouce
Coupe 6 KT CO2/yr Sikanni 5 KT
CO2/yr Fourth Creek 3 KT CO2/yr
Source Page 233, IPCC (2005) Carbon Dioxide
Capture and Storage http//arch.rivm.nl/env/int/ip
cc/pages_media/SRCCS-final/SRCCS_WholeReport.pdf
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Climate Action Closing Thoughts

• Natural gas is part of the solution
• Reliable, safe and cost-effective bridge to
  lower-carbon world
• Spectra Energy Transmission is supportive of BCs
  climate change goals
• We have partnered with the province on the growth
  and success of BCs natural gas sector for 50
  years
• Spectra Energy Transmission has shown leadership
  with significant investments in emissions
  reductions
• Early movers should be recognized
• Spectra Energy Transmissions commitment to
  climate action reflects our integrated approach
  to the
• Economy expanding our infrastructure to move
  natural gas to markets in BC and beyond
• Environment bringing innovation to our
  business, including CCS, to improve local air
  quality and reduce GHG emissions
• Communities investing back into local
  communities to share our success