Natural Gas Pipeline Company of America
Natural Gas Pipeline Company of America (NGPL) is one of the largest natural gas transmission pipeline and storage systems in the United States (US). NGPL extends over 15,600 kilometres and delivers approximately 2,244 petajoules of gas via 217 compressors at 61 stations to end users per annum. Seven major storage facilities with a combined capacity of 630 petajoules can be extracted at a rate of 1,500 terajoules per day from over 50 compressors.
NGPL serves a large part of the Chicago residential, commercial and industrial natural gas customer base and has high interconnectivity through 110 interconnects, with production basins and other pipelines providing a means for producers to access national markets. In addition, NGPL has substantial storage capability which is attractive to local distribution companies, gas-fired electric generators and gas producers who require the ability to store gas to be able to meet volatile loads and take advantage of peak pricing periods.
The four major transmission lines comprising NGPL's interconnected system are the Amarillo Line, A/G Line, Louisiana Line and the Gulf Coast Line.
Expansion opportunities are available in both pipeline and storage capacity which would increase revenue.
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Description |
Natural gas transmission pipeline and storage system |
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Asset Class |
Energy Transmission & Distribution |
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Location |
Traverses through 10 states, United States of America |
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Acquired |
February 2008 |
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BBI % Ownership |
26% |
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Regulatory Environment |
Regulated by the Federal Energy Regulatory Commission (FERC), including rates charged as per the Natural Gas Act. FERC provides a regulated framework for shippers and transmission pipeline owners to reach commercial agreement without direct intervention under a maximum rate regime and there is no periodic rate case obligation. The last FERC ruling was in 1996. |
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Customer Base |
Diversity of high creditworthy customers. The top 10 customers make up approximately 61% of the transmission and storage revenues. The average contract terms are 3.4 years and 4.4 years for transport and storage customers respectively with a long history of contracts being rolled over. |
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Asset Age & Condition |
Pipelines and compression are well maintained and in good condition. |
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Utilisation |
Storage services sold out long term. Amarillo, Crosshaul and Louisiana pipelines are sold out long term. Gulf Coast pipeline typically sold out in winter with some summer capacity available. |
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Key Drivers |
Gas and storage demand with demand for service generating system optimisation opportunities. | |
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