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June 8, 2015
Forward-looking Information
This presentation contains forward-looking statements. When used in this presentation the words may, would, could, will,
intend, plan, anticipate, believe, seek, propose, estimate, expect, and similar expressions, as they relate to AltaGas or
any affiliate of AltaGas, are intended to identify forward-looking statements. In particular, this presentation contains forward-looking
statements with respect to, among others things, business objectives, expected growth, results of operations, performance, business
projects, opportunities and financial results.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking statements. Such statements reflect AltaGas current views with respect to
future events based on certain material factors and assumptions and are subject to certain risks and uncertainties including without
limitation, changes in market competition, governmental or regulatory developments, changes in tax legislation, general economic
conditions and other factors set out in AltaGas public disclosure documents. Many factors could cause AltaGas or any of its
business segments actual results, performance or achievements to vary from those described in this presentation, including without
limitation those listed above as well as the assumptions upon which they are based proving incorrect. These factors should not be
construed as exhaustive. Factors which could cause results or events to differ from current expectations are: capital resources and
liquidity risk, market risk, commodity price risk, operational risk, volume declines, weather, construction, counterparty risk,
environmental risk, regulatory risk and labour relations. Should one or more of these risks or uncertainties materialize, or should
assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this
presentation as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking
statements included in this presentation herein should not be unduly relied upon. These statements speak only as of the date of this
presentation. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements except as
required by law. The forward-looking statements contained in this presentation are expressly qualified as cautionary statements.
Financial outlook information contained in this presentation about prospective results of operations, financial position or cash flows is
based on assumptions about future events, including economic conditions and proposed courses of action, based on managements
assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained
in this presentation should not be used for the purposes other than for which it is disclosed herein. Additional information relating to
AltaGas can be found on its website at www.altagas.ca. The continuous disclosure materials of AltaGas, including its annual MD&A
and Consolidated Financial Statements, Annual Information Form, Information Circular, and Proxy Statement, material change
reports and press releases, are also available through AltaGas website or directly through the SEDAR system at www.sedar.com.
~2 Bcf/d
of natural gas
transacted
1,530 MW
of power generation
in five fuel types1
5 Utilities
serving over
560,000 customers
Gas
Processing and moving
natural gas to key
markets including Asia
Gas
Power
Utilities
Power
Generating clean energy
with natural gas and
renewable sources
Utilities
Delivering clean and
affordable natural gas to
homes and businesses
1 Includes
Abundant
natural gas
RAW
GAS
Existing extraction,
processing &
fractionation
NGL
New processing
infrastructure
SALES
GAS
PNG pipeline
PNG pipeline
expansion
1
2
Rail, truck
&
pipelines2
NORTH
AMERICAN
MARKETS
Ferndale
Terminal1
LPG west coast
terminal
ASIAN
MARKETS
Douglas Channel
terminal
LNG terminal
expansion
Base supply outlook discussion on CERI Study No. 139 dated July 2014
Information presented in the best case scenario (LNG Tsunami)
Will also consider slow growth scenario (Nowhere Fast) and more pessimistic view
Like natural gas, large number of unknowns associated with crude oil prices
Crude oil prices influence the development of both NGLs and LNG
Supply volumes could double from 2012 levels by adding over 1,000,000 BBL/D near 2020
Flows with Canada will reverse from net US imports to net US exports
Exports (includes propylene) trending around 500,000 BBL/D could grow to 1,000,000 BBL/D
10
Begin imports from US in 2016 with volume rising to 75,000 BBL/D by 2030
Increase in Canadian production of 136,000 BBL/D to 378,000 BBL/D by 2030
Assumes new PDH plants in Alberta by 2011 using 66,000 BBL/D
11
12
East of Suez
Market
Europe
Demand:
Supply:
Export Area
Country
Future Cargo
Flow
Import Area
Country
China
Demand:
Supply:
SE Asia
Demand:
Supply:
Oceania
Demand:
Supply:
To South
America
To
Europe
North
America
Demand:
Supply:
Japan /
Korea
Demand:
Supply:
Middle
East
Demand:
Supply:
Africa
Demand:
Supply:
Cargo Flow
South
America
Demand:
Supply:
13
10 (1)
15 (2)
31 (2)
25 (2)
17 (2)
13 (2)
5 (2)
19 (2)
14 (3)
22 (2)
12 (2)
41 (2)
10 (4)
31 (2)
14
15
Roughly 80% of LPG supply delivered to Japan, Korea, and China is sourced from the Middle East
Prices for propane and butane set monthly by Saudi Aramco - traditionally high correlation with Brent
Buyers used to rely on Brent futures for hedging, but CP swap market is improving; indexes for
delivered supply such as Argus Far East Index (FEI) - are developing, but tend to be illiquid
16
Edmonton Netback = Delivered Price From Middle East Cost to Delivered from Edmonton
= (Saudi CP + Freight to Japan) (Rail Costs + LPG Toll + Freight to Japan)
Rail costs and higher LPG Toll for Canadian supply to be partially offset by lower shipping costs to
Asian markets: Expect Canadian prices will return to historical discounts to MTB
17
Demand in Japan, Korea, and Taiwan stable with slow growth: Japans import requirements
were recently adjusted upward due to lower refinery production of propane
Key growth market will be China where propane will be used as feedstock for new PDH plants: 5
plants now operating with 4 new plants to come on in the next 2 3 years
Demand in Indonesia, Thailand, and India expected to rise with population and economic growth
18
Proximity to Asian
markets vs the USGC
Canadas annual
consumption
~3 TCF
19
1 Since
May 1, 2014
See forward-looking statements & information
20
21
Thank You
22