NGPL2016-17 Winter Operations Review

Pipeline Management

• Operations Review

– 2015-2016 Winter Recap

– 2016 Summer

– 2016 Storage & Transport Review

– Winter 2016/2017

– Maintenance Update

• Completed & Waiting

• New facilities

• Winter Readiness

– Winter Checklist

– HP Readiness Checklist

• Contact Lists

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NGPL Facility Map

• Miles of pipe 9,200

• Flow meters 700

• Total HP 1,037,000

•Total compressor stations 52

•Total storage fields 12

Approximate values

• Winter peak day delivery 5.2 BCF

• Storage working capacity 288 BCF

• Mainline linepack 12.3 BCF

Approximate values

Sta 312

Sta 206a

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Winter 2015/2016 Recap

• Winter 2015/2016 was 15 % Warmer than Normal

– Highest monthly system average throughput was 4.5 Bcf/day in Feb 2016

• Winter 2014/2015 throughput peak was 5.2 Bcf/day in Feb 2015

– Market area average throughput was 2.8 Bcf/day in January 2016

• Winter 2014-2015 market area throughput peak was 3.6 Bcf/day in

Feb 2015

• Met Nov 1 storage goals

• No pressure or deliverability issues

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Chicago O’Hare HDDs

Actual Actual

HDD's % of Normal HDD's % of Normal

Nov 607 82% 936 126%

Dec 800 69% 1015 88%

Jan 1239 97% 1317 103%

Feb 997 95% 1405 135%

Mar 665 79% 910 108%

4308 85% 5583 110%

2015-2016 2014-2015

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November - March Throughput Comparison

2015/16 Nov – Mar

2014/15 Nov – Mar

% Change

LDC 2,470 2,967 -17%

Power 318 263 +21%

Industrial 61 47 +30%

Interconnects 1,174 1,096 +7%

Storage 119 206 -42%

TOTAL 4,142 4,579 -10%

• All volumes are MDth

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November - March Throughput ComparisonMarket Area Only

2015/16 Nov – Mar

2014/15 Nov – Mar

% Change

LDC 2,464 2,960 -17%

Power 65 20 +225%

Industrial 42 33 +27%

Interconnects 149 235 -37%

Storage 50 97 -48%

TOTAL 2,770 3,345 -17%

• All volumes are MDth

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Winter Average Daily LDC Demand

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Md

th/d

Summer 2016 Transport

• Summer 2016 Transport Summary

– Power generation deliveries are up 67% from 2015

– Amarillo transports near max from Midcontinent

• Managing around integrity remediation

• Capacity available north of Trailblazer

– Gulf Coast utilization higher and less variable

• REX Moultrie receipts remain strong, many days > 1Bcf

• No restrictions on East Texas receipts

• Arkansas receipts averaging approximately 130,000 MMBtu/d

– Utilization of the Louisiana system increased due to LNG exports

– Deliveries into South Texas increased due to exports to Mexico

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Chicago O’Hare CDDs

Actual Actual

CDD's % of Normal CDD's % of Normal

Apr 7 78% 0 0%

May 67 152% 53 120%

Jun 216 131% 118 72%

Jul 332 117% 246 87%

Aug 343 144% 224 94%

Sep 167 182% 164 178%

Oct 1 9% 1 9%

1133 136% 806 97%

2016 2015

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Summer 2016 Power Loads

• Record power plant loads recorded in July/August

‒ Top 25 days for deliveries to power plants:

• 17 days in July/August 2016

- Peak of 1.04 Bcf/day on July 21

• 8 days in 2012

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April - September Throughput Comparison

2015/16 Apr – Sep

2014/15 Apr – Sep

% Change

LDC 1,689 1,800 - 6%

Power 480 288 + 67%

Industrial 59 51 + 16%

Interconnects 1,427 1,050 + 36%

Storage 470 918 - 49%

TOTAL 4,125 4,107 + 0%

• All volumes are MDth

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April - September Throughput ComparisonMarket Area Only

2015/16 Apr - Sep

2014/15 Apr - Sep

% Change

LDC 1,683 1,797 - 6%

Power 191 69 + 177%

Industrial 39 33 + 18%

Interconnects 96 102 - 6%

Storage 307 366 - 16%

TOTAL 2,316 2,367 - 2%

• All volumes are MDth

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Summer Average Daily Power Demand(MDth/d)

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Summer Average Daily LDC Demand(MDth/d)

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NGPL Storage Data Review

Withdrawal

Injection

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Winter 2016/2017

• Projected to exceed market storage working inventory

target of 116 MM Dth on Nov 1

– Working inventory on Nov 1 estimated at 119 MM Dth

• Plan is to complete key remaining maintenance projects in

November

• Expected changes in pipeline flows:

– REX receipts will increase on Gulf Coast

– Deliveries to LNG export facilities will continue to increase

– Deliveries to Mexico markets will continue

– Traditional supply basins:

• TX-OK will remain strong

• Midcontinent will remain at capacity

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NOAA Weather

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EIA Prediction

• EIA released its annual Winter Fuels Outlook, predicting the

season will be colder than last year.

• Regionally, the weather should be colder than last year east of

the Rockies with the Northeast and the Midwest seeing 17%

colder temperatures on average and 18% in the South.

• That said, last year was exceedingly warm, so this winter is

projected to be about 3% warmer than the average of the

previous five winters before last year. The West is expected to

be warmer than last year by about 2%.

Source: http://www.eia.gov/petroleum/heatingoilpropane/pdf/winterfuels2016.pdf

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• Integrity IMP

• SCC

• General maintenance

• HP replacement program

Updated 12 Month Rolling Maintenance Plan is posted on

EBB around the 20th of each month

• A detailed listing/description of the next month’s outages is

also posted on the 20th of each month.

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NGPL Maintenance Program

2016 NGPL Maintenance Program

TYPE

2016

JOB

COUNT

2015

JOB

COUNT

2014

JOB

COUNT

Integrity 187 193 170

O&M 324 286 285

System Total 511 479 455

Market Area and

Storage

128 113 120

Amarillo projects 214 214 163

GC projects 169 152 172

Posted 58 62 61

Posted (with an

impact)

24 28 25

Not posted (no

impact)

453 417 394

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1

GC #2 308-309 30” AFD

• Waiting on final graded report

• Expected results mid

November

Sta 312

Sta 206a

GC #2 308-309 30” EMAT

• Re-run Oct 20

• Expected results March 2017

GC # 2 310 30” EMAT

• 12 SCC digs remaining

• Expected to complete

mid November

1

22&3

3

2016 Remaining Projects with Potential Impacts

Gulf Coast

22

2

1

Am #2 108-109 26”

• Make piggable project

• Expected to complete in

December

AM #3 108-109 36” MFL

• 2 digs required

• Expect to complete in early

November

2

1

3

3

Sta 312

Sta 206a

AM #2 26” 105-106 AFD

• Rerun Dec 6

• DQA rejected in Sept

• Expected results in January 2017

2016 Remaining Projects with Potential Impacts

Amarillo

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New FacilitiesCompressor Station 206A

• Install new 22,000 HP unit, replacing 5 existing units

at Compressor Stations 310 and 311

• System benefits

– Replace ~15,000 HP with new HP

– Add incremental 7,000 HP

– Increased system flexibility and reliability

– Increased ability to optimize Loudon storage withdrawals

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New FacilitiesCompressor Station 312

• Install new 30,000 HP unit

• System benefits

– Provides 238,000/Dth/day of incremental firm transportation

service to Chicago area markets

– Increased system flexibility and reliability

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Winter Checklist

• Compression– Test run all compression units prior to increased demand due to colder weather

– Incorporate 206A and 312 into the compression plan

• Storage– Achieve market storage plan by Nov 1

• Field storage is currently 99% full

• Pipeline– Maintain linepack targets by area

– Maintain throughput targets

– Maintain pressures for key areas

– Field ops to man key sites

• Scheduled Maintenance– Limit planned maintenance activities to those required by regulation or policy

• Customer Communication– NGPL posts system capacity and outage information

– NGPL scheduling representatives and Account Directors available for questions

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HP Readiness Checklist

• Amarillo

– All mainline stations tested and are ready.

• Gulf Coast

– All mainline stations tested and are ready.

• La Line

– 343 Unit #9 (15000 HP) overhaul completed by Nov 20.

• Market Area

– All stations tested and are ready (113, 114 & 116).

• Storage

– All HP and related facilities have been tested and are ready.

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NGPL 2016/2017 Contact List

Gas Control

Emer 800-733-2490

24 hr 713-369-9400

#GC-NGPL@kindermorgan.com

Trennis Curry

713-369-9378

Cell 713-819-4577

Bill Weidlein

713-369-9131

Cell 936-524-3306

Kenny Robbins

713-369-9432

Cell 832-588-3901

Danny Ivy

713-369-9311

Cell 713-829-2761

Ray Miller

713-369-9330

Cell 713-206-8338

Transport and Stor Services

TSS Hotline

24 hr 713-369-9683

Richard Williams

713-369-9283

Cell 713-819-1748

Gene Nowak

713-369-9329

Cell 713-252-9759

Account Services

Dave Weeks

630-725-3030

Cell 630-399-1193

Donette Bisett

713-369-9316

Cell 713-724-6445

Jim Brett

630-725-3040

Cell 630-437-0103

Field Operations

Gary Countryman

815-272-9102

Cell 815-302-9879

Dee Bennett

815-272-9104

Cell 815-693-0517

Bob Montgomery - W. Region

806-379-2041 Ext 225

Cell 806-679-0320

Ken Grubb VP OPS

713-369-8763

Cell 281-702-1210

Gary Buchler COO

713-369-8463

Cell 713-824-3904Houston TX Office

713-369-9000

1001 Louisiana St

Houston, TX 77002

Downers Grove IL Office

630-725-3000

3250 Lacey Rd

Suite 700

Downers Grove, IL 60515

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