MTS MeetingMTS MeetingMarch 25, 2004March 25, 2004

Agustin FerrufinoAgustin FerrufinoDirector, Engineering & ConstructionDirector, Engineering & Construction

Gulfstream Offshore Gulfstream Offshore

Gulfstream OverviewGulfstream Overview

What is Gulfstream?

� 587-mile transmission gas pipeline

! 437 miles of 36� offshore pipeline

! 134 miles of onshore pipelines in FL

! 16 miles in AL & MS

!Compression & gas treatment in AL

� Placed into service May 2002

� Cost: $1.468 billion

� Design capacity: 1.1 Bcf/d

! Enough to create electricity for 4.5 million Florida homes

� Partnership between Williams & Duke Energy

Gulfstream OverviewGulfstream Overview

Phase IMay 2002Phase I

May 2002

Gulfstream OverviewGulfstream Overview

Gulf of MexicoGulf of Mexico

Sta. 055Destin (600)

Sta. 055Destin (600) Compressor

Sta. 410 � CodenCompressor

Sta. 410 � Coden

Jackson County, MSJackson County, MS Mobile County, ALMobile County, AL

Sta. 015 MBPP (600)Sta. 025 ExxonMobil (150) Sta. 050Sta. 045 Gulf South (250)

Sta. 015 MBPP (600)Sta. 025 ExxonMobil (150) Sta. 050Sta. 045 Gulf South (250)

Sta. 005DIGP 20�

(250)

Sta. 005DIGP 20�

(250)

Sta. 035Williams (300)

Sta. 035Williams (300)

Line 060Line 060

Line 200Line 200Mississippi Sound

Gulfstream OverviewGulfstream Overview

What made Gulfstream unique?� First natural gas transmission pipeline built in the Gulf of Mexico

� Largest pipeline in the Gulf of Mexico

! 420 miles of 36" OD, high pressure rating of 2180 psig MAOP

� Designed with no compression offshore

� First pipeline on east side of the Gulf of Mexico

� Florida�s first natural gas transmission pipeline in 40 years

� Only offshore gas pipeline to make landfall in Florida

! Strict dry gas specs ensure minimal quantity of liquids delivered

� Other technological breakthroughs during construction and commissioning

ChallengesChallenges

PermittingPermittingRoute SelectionRoute Selection

ScheduleSchedule ConstructionConstruction

Sunshine Skyway BridgeSunshine Skyway Bridge

� Protecting steel plates: 72" ID half circle x 3� thick

� Distance: Continuous 300 feet on each side of the bridge

� Cover: 3 feet below bottom

Route SelectionRoute Selection

Route SelectionRoute Selection

ScheduleSchedule

Phase I Schedule

Started Offshore

Construction

Started Offshore

ConstructionFeb. 2001Feb. 2001 July 2001July 2001

ReceivedFERC

Approval

ReceivedFERC

Approval

FloridaDEP Permit

FloridaDEP Permit

Williams/DukePurchased The Project

Williams/DukePurchased The Project

January 2001January 2001

Oct. 1999Oct. 1999

Filed for FERCCertificateFiled for FERCCertificate

May 2002May 2002In-ServiceIn-Service

Build AdditionalFacilities

As Needed

March 2001March 2001

Build AdditionalFacilities

As Needed

Oct. 2001Oct. 2001

Started Onshore

Construction

Started Onshore

Construction

PermitsPermits

Significant Milestones

� Final EIS received in January 2001

� FERC certificate issued in February 2001

� Florida DEP permits received in March 2001

� Implementation plan filed in April 2001

� Alabama COE permit received in May 2001

� MMS permit received in June 2001

Onshore ConstructionOnshore Construction

Station 410� Harmony Corporation lead construction contractor

� Dual Train Mole Sieve Gas Dehydration

� Dual Train Propane Refrigeration Hydrocarbon Dew Pt. Control

� Rolls-Royce RB211 turbines

� Dresser Rand D10RS comp.

� 2 Operating, 1 Spare

� 119,100 ISO HP InstalledStation 410Coden, AL

Onshore ConstructionOnshore Construction

Station 410

Onshore pipelines

� 134 miles of 16�, 24�, 30� & 36� pipelines installed in 2001 & 2002.

� 4,000 feet installed per day

� MAOP 1480 psig

� 13 meter stations

� 10 HDDs

Onshore ConstructionOnshore Construction

Offshore ConstructionOffshore Construction

� Started June 2001

� Stolt Offshore prime offshore contractor

� PCS lead design consultant

� Offshore pipe

! 2180 psi design pressure! Mostly 36� X-70 pipe with 0.820

wall thickness! CWC designed for stability in 100-

year storm with specified densities up to 205 pcf

! Water depth up to 800�

Construction Facts

Offshore ConstructionOffshore Construction

Lay Barge 200� Used in water depths greater than 50�

� Set a world record welding 274 double joints (548 single jts) in 24 hours

� 5 fully automated welding stations, 1 AUT and 2 field joint coating stations

� 550� long (1,000� w/stinger)

� 400 workers

� Lays 3-4 miles per day

Offshore ConstructionOffshore Construction

Lay Barge 200

Offshore ConstructionOffshore Construction

Derrick Lay Barge 801� Used in intermediate water depths (20� to 50�) in AL

and in FL State waters

� Capable of laying 1 mile of pipe per day

� 7 work stations

� 1 AUT stall

� 351� long

� 233 workers

Offshore ConstructionOffshore Construction

Spud Barge

� 130 workers

� Shallow water lay barge; Ms. Sound in Al. and Ms.

� Capable of laying 4,000� of pipe per day

� 7 work stations

� 1 AUT stall

� 500� long

� 4 spuds

Offshore ConstructionOffshore Construction

Other Vessels:� Saipem Castoro 10: jetting OCS and installations of

WSSTI

� Horizon Pecos: jetting offshore Ala to WSSTI

� Stolt DLB 801: installation of offshore mainline valve

� Stolt DSV Hawk: installation of offshore mainline valve

� Saipem Far Sovereign: plowing in Florida

� 250 Jack-up: Pipeline flooding support at ESSTI

� 145 Jack-up: Installation of mainline valve in Tampa Bay, near fishing pier

Offshore DesignOffshore Design

36� ANSI 900 Wishbone Wye� 36� X 36� X 36�, 75 yield material

� Weight: 46,821 lbs (23.4 Tons)

� Overall shipping dimensions: 20.25� x 9.75�

� For future expansion options

Pipe OrderPipe Order

DSAW Pipe Order Summary� Order placed -- 12/00

� First slab deliveries to Europe -- 1/01

� Pipe rolling started -- 2/01

� First shipment arrived in US -- 4/01

� 13 ships delivered pipe to AL/FL from Europe

� 119 barge loads of pipe delivered to AL/FL from Panama City, FL

Pipe OrderPipe Order

DSAW Pipe Order Summary

� Summary of pipe delivered in 2001

! Total footage = 2,905,700�

! Total est. pieces = 73,600

! Net tons = 449,900 tons

� Summary of pipe delivered 2002

! Total footage = 521,200�

! Total est pieces = 13,200

! Net tons = 37,800 tons

Pipe CoatingPipe Coating

Summary

� Pipe coating suppliers included Dupont, Jotun, 3M, Lilly, BASF

� Powder supplied through 2003

! FBE � 2,354 tons

! Anti Slip � 270 tons

! Abrasion Resistant � 106 tons

� Raw materials required

! Iron ore � 250,000 MT

! Cement � 70,000 MT

! Reinforcing wire � 50 million sq. ft.

! Plastic � 24 million sq. ft.

Pipe Coating PlantsPipe Coating Plants

Theodore, AL

Pipe Coating PlantsPipe Coating Plants

Port Manatee, FL

Pipe DeliveryPipe Delivery

Load In vs CWC Production

36" x 0.820" Load In vs. CWC Production

0

1,500

3,000

4,500

6,000

7,500

9,000

10,500

12,000

13,500

15,000

16,500

18,000

19,500

21,000

22,500

24,000

25,500

27,000

3699

1

3699

9

3700

7

3701

5

3702

3

3703

1

3703

9

3704

7

3705

5

3706

3

3707

1

3707

9

3708

7

3709

5

3710

3

3711

1

3711

9

3712

7

3713

5

3714

3

3715

1

3715

9

3716

7

3717

5

3718

3

3719

1

3719

9

3720

7

3721

5

3722

3

3723

1

3723

9

3724

7

3725

5

Pipe

s

Pipe Load In

CWC Production

Pipe DeliveryPipe Delivery

Load Out vs CWC Production

Gulfstream Project - CWC Performance

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

4/10

/01

4/24

/01

5/8/

01

5/22

/01

6/5/

01

6/19

/01

7/3/

01

7/17

/01

7/31

/01

8/14

/01

8/28

/01

9/11

/01

9/25

/01

10/9

/01

10/2

3/01

11/6

/01

11/2

0/01

12/4

/01

12/1

8/01

Pipe

s

Actual Prod.

Actual Load out + projection@450 jts/day

Laying PipelineLaying Pipeline

LB-200 Daily Production

GULFSTREAM PROJECT - LB200 Daily ProductionAs Built Up to December 20th

0

50

100

150

200

250

300

350

400

450

500

550

600

05-J

ul-0

109

-Jul

-01

13-J

ul-0

117

-Jul

-01

21-J

ul-0

125

-Jul

-01

29-J

ul-0

102

-Aug

-01

06-A

ug-0

110

-Aug

-01

14-A

ug-0

118

-Aug

-01

22-A

ug-0

126

-Aug

-01

30-A

ug-0

103

-Sep

-01

07-S

ep-0

111

-Sep

-01

15-S

ep-0

119

-Sep

-01

23-S

ep-0

127

-Sep

-01

01-O

ct-0

105

-Oct

-01

09-O

ct-0

113

-Oct

-01

17-O

ct-0

121

-Oct

-01

25-O

ct-0

129

-Oct

-01

02-N

ov-0

106

-Nov

-01

10-N

ov-0

114

-Nov

-01

18-N

ov-0

122

-Nov

-01

26-N

ov-0

130

-Nov

-01

04-D

ec-0

108

-Dec

-01

12-D

ec-0

116

-Dec

-01

20-D

ec-0

1

Dai

ly P

rodu

ctio

n (S

J)

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Cum

ulat

ive

Pro

duct

ion

(SJ)

Daily Production Cumulative Production

TS 'BARRY' TS 'GABRIELLE'

MLV 2E19-Oct-01

MLV 2F21-Nov-01

20-Dec-01 Lay Down Complete

48,802 SJ

MLV 2D9-Sep-01

WSSTIA28-29 July-01

PINNACLES18-20 Aug-01

HR 'MICHELLE'

CommissioningCommissioning

Preparing for service� Flooding the pipelines for hydrotest

� Hydrotesting the segments

� Dewatering the supply & mainline

� Drying the mainline

� Purging & commissioning the mainline

Largest Dewatering SpreadLargest Dewatering Spread

Valve DiagrammaticValve Diagrammatic

EnvironmentalEnvironmental

Offshore MitigationDeveloped mitigation plan in conjunction with the Florida Department of Environmental Protection, the Florida Marine Research Institute, the U.S. Army Corps of Engineers, the Hillsborough County Environmental Protection Commission, the Minerals Management Service, and the National Marine Fisheries Service.

Federal Waters

• Added new limestone hard bottom

• 49.4 acres of mitigation

• 153 man-made reef modules

• 130,000 tons of limestone

• Monitoring up to 10 years

EnvironmentalEnvironmental

Offshore MitigationState Waters

• 19.74 acres of mitigation

� Accomplished using 100 20X24 shallow water reef habitat modules

� Required 5,000 tons of Florida limestone

• Required that divers physically remove and transplant soft and hard coral from the proposed pipe lay area

EnvironmentalEnvironmental

Environmental MitigationOnshore

• Spoil Island (65 acres)!Created bird sanctuary w/ Audubon & Port

• Harbor Key (100 acres)!Exotic plant removal

• Lake Wales Site (398 acres)!Created and enhanced wetlands & uplands

!Planted over 117,000 trees

• Manatee Site (181 acres)!Exotics removal, creating wetlands

!Planted 3,500 trees & 500,000 plants

What�s Next?What�s Next?

Phase II Extension

In May 2003 Gulfstream announced an agreement with Florida Power & Light to provide 350 MMcf/d for its Martin & Manatee plant expansions.

2004 Facilities

� 103 miles

� 30-inch diameter pipe

� 1 meter station

� Construction begin Spring 2004

� In service Winter 2004