1. Methane Emissions Management at TransCanada PipeLines by Hasan Imran (2004 Natural Gas STAR Technology Transfer Workshop, Houston, Texas. Sept. 2004)

2. AGENDA TransCanada PipeLines Ltd.  Introduction & Background TransCanada Climate Change Strategy Greenhouse Gas Emissions Emissions Management Strategy TransCanada’s Experience  Control Methodologies  Research & Development Conclusion Methane Emissions Management at TransCanada PipeLines

3. TransCanada PipeLines at a Glance Methane Emissions Management at TransCanada PipeLines

4. Corporate GHG Emitters Ontario Power TransAlta SaskPower TransCanada Imperial Oil Atco Power Syncrude Westcoast Suncor EnCana Dofasco Nova Chemicals Dupont Ford Canada Daimler Chrysler 0 5 10 15 20 25 million tonnes CO 2 E 38 Methane Emissions Management at TransCanada PipeLines

5. Climate Change Policy Climate Change Policy Climate Change issue is not going away. Greenhouse Gas Emissions is potential liability for TransCanada. We have a plan in place to manage climate change. TransCanada believes in promoting global solutions to this global challenge. TransCanada believes prudent action is required. TransCanada believes in a strong commitment to technological innovation. Methane Emissions Management at TransCanada PipeLines

6. Participation in National Processes Direct Emissions Reduction Technology Development Business Opportunities Emissions Offsets Fugitive Emissions Management Blowdown Emissions Management Landfill Gas Reuse CDM/JI Dry Gas Seals Methane Biofiltration Combustion processes CO2 service ? Issue Table Process Upstream Oil and Gas Working Group Methane Emissions Management at TransCanada PipeLines Climate Change Strategy

7. Methane Emissions Management at TransCanada PipeLines

8. 2002 vs 2003 GHG Emissions by Type Methane Emissions Management at TransCanada PipeLines

9. Greenhouse Gas Emissions from Pipeline Operations Methane Emissions Management at TransCanada PipeLines

10. Methane Emissions Distribution Methane Emissions Greenhouse Gas Emissions Methane Emissions

11. TCPL Emissions Management System Combustion Emissions Vented Emissions (CH 4, CO 2 ) Fugitive EmissionsBlowdown Emissions Energy Efficiency and conservation LDAR (leak detection & repair) HFS (measurement) - CO 2 - CH 4 - N 2 O - transfer compression - pipeline inspection tools - buttering and hot tapping - stopple plugs - repair sleeves - hot line lowering - incineration - CO - VOC’s - NOx R & D Methane Emissions Management at TransCanada PipeLines

12. High Flow Sampler Measurement - Accuracy; + 25% - identification of most “cost effective fixes” Bacharach HFS - NEW Fugitive Emissions Management (LDAR vs Measurement)

13. Methane Emissions Management at TransCanada PipeLines

15. Sample Field Measurement Data Analysis Methane Emissions Management at TransCanada PipeLines

16. Benefit - Cost Effective Repairs

17. LDAR Program Achievements Bcf Methane Emissions Management at TransCanada PipeLines M M

18. TransCanada’s Contribution to Environment Emissions saved in no. of Tree Equivalents Methane Emissions Management at TransCanada PipeLines Total Equivalent Cars taken off the road = 42,330 Total Equivalent Homes which can be heated for one year = 3,427

19. Scheduling Practices Operational Adjustments Transfer (Pull-down) Compressors Buttered Stubs Hot Tapping Sleeves Stopples Hot line lowering Blowdown Emissions Management ( Control Methods and Technologies Used) Methane Emissions Management at TransCanada PipeLines

20. Reducing Emissions by using Transfer Compressor Methane Emissions Management at TransCanada Pipelines

21. Outcome from Reduction Programs 2003 Summary of Savings from Methane Emission Reduction Programs Minimizing Blowdown Emissions 1,132 tonnes of CO2E Transfer Compression626,966 Valve Sealing61,678 Buttering & Hot Tapping154,632 Repair Sleeves164,949 Reducing Fugitive Emissions 223,270

22. Savings Outcome (million tonnes of carbon dioxide equivalent - Mt CO2E) 199519961997199819992000200120022003 Methane Emissions3.292.822.552.452.372.151.06 0.82 0.81 Savings0.150.231.741.261.202.101.591.241.13 Methane Emissions and Savings

23. Research & Development  Incineration of Blowdown Gas using new Technology  Biofilter for Meter station methane emissions oxidation  Dry Gas Seal Emissions capture technology  Incineration Methane emissions by the use of CH4Reactor  Fuel Cells Methane Emissions Management at TransCanada PipeLines

24. Technology R&D at TCPL (use of incinerator for blowdowns) Incineration of blowdown gas instead of venting (after transfer compression) At Caron Compressor Station, Moose Jaw, November 2002 Methane Emissions Management at TransCanada PipeLines Emission savings of 1,100 t CO2E

25. Meter Station, Alberta Biofilter Pilot Plant for Methane Emissions Reduction Research at University of Calgary Biofilter Methane Emissions Management at TransCanada PipeLines

26. Biofilter Pilot Plant for Methane Emissions Reduction

27. Compressor Dry Gas Seal Emissions Mitigation Research Project Use of gas-gas ejector to recompress seal gas emissions Re-injecting to high pressure system Application to TransCanada Compressors would save  538 MMSCF/yr. of natural gas  227,000 tCO2E/yr. of greenhouse gas emissions Negligible operating cost Methane Emissions Management at TransCanada PipeLines

28. Compressor Dry Gas Seal Emissions Mitigation Research Project

29. 653 t CO 2 E/yr. (538 MMCF/yr) 348 seals 1 seal 227 kt CO 2 E/yr. Emissions Value = $ 0.68 M Market value of gas = $ 3.70M @ $6.84/1000 ft3 Methane Emissions Management at TransCanada PipeLines Compressor Dry Gas Seal Emissions Mitigation Research Project

30. Cost to Reduce GHGs ($/tonne) GHG Emissions Reductions Required(million tonnes CO2e) Methane Management Programs in place CONCLUSION - Cost Curve Methane Emissions Management at TransCanada PipeLines