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Gas Quality Interchangeability - Nicor Gas

1 Gas QualityInterchangeabilityMaureen WilliamsSenior Manager,Gas Control & Transmission2 Interchangeability The overall ability to substitute one gas for another without materially impacting the safety, efficiency and operability of existing end-use applications Blending gas3 Why is this an issue now? Domestic and Canadian production (supply) in a holding pattern Demand is expected to continue to rise Two main sources of expanded supplies near to mid-term Domestic production Outer Continental Shelf (OCS) Liquefied Natural Gas (LNG) Additional Sources Coal Gasification Landfill Gas Alaskan Gas still more than 10 years out4 Working To Understand the Impact 2004 National Petroleum Council publishes a report commissioned by the Department of Energy regarding the future of US energy supply where LNG is identified as a viable alternative National Gas Council forms a working group NGC+ to study Interchangeability issues, and develop industry consensus on standards and specifications for pipeline gas Quality Publish the NGC+ White Paper5 Looking Toward LNG Currently 6 operating LNG import terminals in North America 17 proposed LNG import terminals have been approved 25 are on file in Canada, US and Mexico 21 projects are in the planning stages Many are in the Gulf Region Some Illinois supplies are aggregated and sourced from the Gulf of Mexico67 FERC Action June 2006, the US Federal Energy Regulatory Commission (FE)

1 Gas Quality Interchangeability Maureen Williams Senior Manager, Gas Control & Transmission

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