Tennessee Gas Pipeline Co, LLCnortheastgas.org/pdf/p_troutman_tennessee.pdf · Tennessee Gas...

Tennessee Gas PipelineTennessee Gas Pipeline

Tennessee Gas Pipeline Co, LLC

Northeast Gas AssociationRegional Market Trends Forum

April 30, 2013

Preston TroutmanDirector, Business Development


Kinder Morgan: Unparalleled Asset Footprint

2

3rd largest energy company – North America

Enterprise value ~ $110 billion (a)

Largest natural gas network in U.S.— Own an interest in / operate ~ 62,000

miles of natural gas pipeline— Connected to all important U.S.

natural gas resource plays Largest independent transporter of

petroleum products in U.S.— Transport ~1.9 MMBbl/d (b)

Largest transporter of CO2 in U.S.— Transport ~1.3 Bcf/d of CO2 (b)

Largest independent terminal operatorin U.S.— Own an interest in or operate ~180

liquids / dry bulk terminals— ~112 MMBbls domestic liquids capacity— Handle ~106 MMtons of dry bulk

products (b) Only Oilsands pipe serving West Coast

— TMPL transports ~300 MBbl/d to Vancouver / Washington State; expansion under way increasing capacity to 890 MBbl/d

__________________________(a) Combined enterprise of KMI, KMP & EPB as of

4/12/2013; see footnotes on slide 4 for furtherinformation.

(b) 2013 budgeted volumes. 4


Natural Gas PipelinesSegment Outlook

Project Backlog: $2.8 billion of identified growth projects over next

five years (a), including:— TGP Northeast upgrade— LNG liquefaction (FTA @ Gulf & Elba Island)— SNG / Elba Express expansions— Sierrita lateral to Mexico border

Long-term Growth Drivers: Natural gas the logical fuel of choice

— Cheap, abundant, domestic and clean Unparalleled natural gas network

— Sources natural gas from every important natural gas resource play in the U.S.

• Eagle Ford, Marcellus, Utica, Uinta, Haynesville, Fayetteville and Barnett

— Connected to every major demand center in the U.S.

Demand growth and shifting supply from multiple basins

— Power / gas-fired generation— Industrial and petchem demand— Growth in Mexican natural gas demand— Repurposing portions of existing footprint— Greenfield development

Expand service offerings to customers LNG exports Acquisitions

Well-positioned connecting key natural gas resource plays with major demand centers

__________________________(a) Excludes acquisitions and dropdowns, includes KM's share

of non-wholly owned projects.Includes projects currently under construction. 3


Mexico Demand

Southeast Demand

Northeast Demand

Utica Shale

LNG Export

Linking the best markets to the best supply basins

Tennessee Gas Pipeline

System Overview 13,900 miles of pipeline 1.4 million horsepower 7.2 Bcf/d – design capacity >500 firm transportation customers 35 MM households equivalent

Long-term Growth Drivers Demand growth across system Abundant & Growing Supply

— Eagle Ford, Haynesville, Fayetteville, Barnett, Marcellus & Utica


TGP Demand GrowthSystem Wide

Avg Daily Deliveries (MDth/d)~ 40 % cumulative growth 2010 - 2012 6

0

2,000

4,000

6,000

8,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2011 2012 2013 YTD


6

0

500

1,000

1,500

2,000

2,500

3,000


2010 2011 2012 2013 YTD

Avg Daily Deliveries (MDth/d)~ 28 % cumulative growth 2010 - 2012

TGP Demand GrowthNortheast


7

0

400

800

1,200

1,600

2,000


Avg MDth/d

2010 2011 2012 2013

Northeast Markets: ~ 40 %

TGP Power Generation FlowsSystem Wide


8

0.000.400.801.201.602.002.402.80

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Winter (Nov – Mar)Avg Bcf/d

Niagara (TGP) Shelton Wright Dracut Distrigas Stagecoach Marcellus REXREX

Station 219

0.00

0.40

0.80

1.20

1.60

2.00

2.40

2008 2009 2010 2011 2012

Summer (Apr – Oct)Avg Bcf/d

Bcf

/dB

cf/d

Station 219

Bcf

/dTGP – Market Area SupplyTraditional supply displaced


* Tennessee’s 300 Line Expansion in service

LocationsPercent Days Restricted

(November - March)

10 / 11 11 / 12 12 / 13

Station 245 96 % 99 % 100 %

Station 254 0 % 0 % 65 %

Station 261 0 % 0 % 80 %

Station 325 87 % 7 %*

0 %

Station 315 25 % 91% 100 %

Station 321 48 % 9 % *

65 %

TGP – Northeast RestrictionsInterruptible Services: WINTER


* Tennessee’s 300 Line Expansion in service

LocationsPercent Days Restricted

(April- October)

2010 2011 2012

Station 245 22 % 79 % 94 %

Station 315 0 % 81 % 100 %

Stations 321/325

12 % 73 % 0 %*

TGP – Northeast RestrictionsInterruptible Services: SUMMER


TGP Northeast Supply PositionLarge & Growing

MARCELLUSMARCELLUS

UTICAUTICA

TGP – Direct Access to Northeast Gas Supplies

Marcellus Area Production (Q1 2013) ~ 9 Bcf/d – TGP Receipt capacity ~ 2.5 Bcf/d – Avg receipts –TGP ~ 8.5 Bcf/d – Avg receipts - All pipelines Continued growth coming 2015 fwd

UTICAUTICA

Utica Area Production TGP multiple lines through heart of production ~1.4 Bcf/d – TGP Receipt capacity underway Estimated Production

~ 1.5 Bcf/d by 2016; ~ 2.0 Bcf/d by 2018


TGP – Northeast Development

Project Dth/d Shippers In-Service Status300L Project 350,000 EQT Energy Nov 1, 2011 In Service

NSD 250,000 Cabot, Seneca, Anadarko, Mitsui

Nov 1, 2012 In Service

Northampton 10,400 Berkshire, Bay State Nov 1, 2012 In Service

MPP Project 240,000 Chesapeake, Southwestern Nov 1, 2013 FERC Order received , On Schedule

NE Upgrade 636,000 Chesapeake, Statoil Nov 1, 2013 Construction, On Schedule

Rose Lake 230,000 South Jersey Res., Statoil Nov. 1. 2014 FERC Order pending, On Schedule

Uniondale 34,000 UGI Resources Nov. 1, 2014 FERC Prior Notice

CT Expansion 72,100 In Active Development Nov 1, 2016 In Active Development

Northeast Expansion TBD In Active Development TBD 2017 - 2018 In Active Development

• ~ $1.3 Billion Capital spent• Fully Subscribed• In Service On Time

• Development Continues


13

TGP’s Connecticut Expansion

Wright

Connecticut Expansion Receipts: Northeast Shale; Wright, NY Deliveries: Connecticut In-service: November 1, 2016 Facilities: Pipeline looping on TGP 200

and 300 lines

Supports Connecticut’s Comprehensive Energy Strategy

Strategic expansion for TGP and the Connecticut customers

Provides access to Marcellus Shale Positions Connecticut for future growth


14

Northeast Expansion ProjectOverview

New England Highest spot prices in US Capacity constraints into region Reduced deliveries from MN&E and Hubline

Production declines Decreased LNG imports

Market Need Need for additional capacity into the region Customer desire for Northeast Shale Large subscription level required Power market to be restructured

Timing is uncertain


TGP’s Northeast Expansion Project

15

WrightDracut

PROJECT OVERVIEW 0.5 to 1.2 Bcf/d pipeline

Scaleable & Expandable Regional solution; 3rd pipeline

171 miles of loop & build; 60% existing corridors

Varied supplies at / near Wright, NY Maximizes market access & options

Firm capacity thru bottlenecks Incremental supply to traditional markets Option to serve markets further north Unique opportunity to expand

infrastructure Varied market sectors / participants

STATUS Significant interest received to date Negotiations continue Fixed negotiated rates; long term commitment Customized in-service date

Q4 2017 and beyond


Commercial Contacts

16

Preston TroutmanDirector, Business Development

[email protected] (o)713-206-3290 (c )

Becky MackManager, Business Development


Dodson SkipworthAccount Director, Northeast


Tennessee Gas Pipeline Co., L.L.C1001 Louisiana StreetHouston, TX 77002

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