Update on Alaskan Industry Arctic Gas Symposium Houston, Texas November 29, 2001 Williams Energy Services Bob Purgason
2 Rules for Liquids Development Liquids follow the gas
3 Williams in Alaska Long History in State Topping refinery 200 Mbpd Anchorage Terminal Storage 730 Mbpd TAPS Minority Interest Royalty Oil Purchaser Convenience Stores 500+ Employees Former Project Director of Alaskan Portion of ANGTS
4 Williams in Canada $545 million of fixed assets in Canada today 6 Bcfd capacity, 6 gas processing/treating plants 120 Mbpd C 2 and 87.5 Mbpd C 3+ capacity Frac capacity of 65 Mbpd and 5 MMbbls liquid storage Olefins facility under construction, Fort McMurray Oil Sands, 14 Mbpd C 3 + capacity Over 200 Williams employees in Canada Expected annual revenues of $670 million
5 Williams in the L48 Some of the liquids related assets: 14.6% equity in Alliance and Aux Sable 14,300 miles of NGL pipelines 28 treating and processing plants Petroleum products terminals and pipelines Refinery and facilities at Memphis Petrochemical facilities
6 What Kind of Gas May Be Available? 4 Bcfd C 2 recovery potential 100+ Mbpd C Mbpd High pressure, dense phase inlet source: Alaskan Gas Producers Pipeline Team
7 For Petrochemical Development to Happen Must have competitive feedstock price Must compete with Middle East Producers to supply Asian markets
8 Petrochemicals ? Williams conducting feasibility study in Alaska (results in 4Q) ? Areas of analysis Ethane extraction & enhancement Ethane cracking/Ethylene Production Polyethylene Other Petchem including propylene and derivatives Creative, Value Added Solutions Needed
9 ? Looking for petchem derivative participants ? Recently contracted CMAI to perform international marketing evaluation Creative, Value Added Solutions Needed
10 Major NGL Hubs
11 Potential New NGL Hubs Chicago Storage and take away capacity a possible issue Others?
12 Summary All Alaskan Stakeholders must work together Creative, value added solutions needed Timeliness is key Opportunity to create a new energy legacy