WWW.NGSA.ORG

Dena Wiggins President and CEO, Natural Gas Supply Association October 7, 2015

United States Energy Association

Bright Future for Natural Gas

Supply, Markets -- and Policy Challenges

Represents major producers and suppliers of

domestic natural gas

Promotes benefits of competitive natural gas

markets, resulting in reliable and efficient

transportation and delivery, increased supply and

demand

Celebrating 50th Anniversary in 2015

Who is NGSA?

Size of U.S. Recoverable Natural Gas Resource Doubled in Last Decade

Shale resources remain the dominant source of U.S. natural gas production growth U.S. dry natural gas production

trillion cubic feet

Source: EIA, Annual Energy Outlook 2015 Reference case

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10

20

30

40

50

60

70

80

90

100

0

5

10

15

20

25

30

35

40

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

Tight gas

Coalbed methane

Other lower 48 onshore

Shale gas and tight oil plays

Alaska Lower 48 offshore

Projections History 2013

billion cubic feet per day

Looking Forward:

Bright Future for Natural Gas

6

Focus On Electric Demand Long-term structural increase in demand becoming

evident in 2015 as MATS Rule Kicks In

Source: Energy Ventures Analysis 2015 Summer Outlook, June 2015

2015: 126 Retiring Coal Plants

44 plantsRuns at 21-60%

20 GWs Coal-fired Generation Retires; BUTOne-Half Retiring Plants Run Under 20% Capacity

Summer 2015: Natural gas demand up 0.5 Bcf/day due to coal retirements

66 plantsRun at 0-20%

44 plantsRun at 21-60%

16 plantsRun at 61-90%

Summer 2015: Natural gas demand up

0.5

0.5 cf/day

due to coal retirements

15 Expansions

11 Petrochemical

4 Fertilizer

$117 Billion Investment to Build Increase of 3.9 Bcf/d

51 New Projects

37 Petrochemical

11 Fertilizer

3 Steel

Focus On Industrial Demand: Natural Gas Spurring 66 Major Industrial Projects 2015–2020

Data Source: Energy Ventures Analysis, June 2015 Photo courtesy: Chevron U.S.A. Inc., 2015 (Pascagoula)

8

U.S. LNG Exports to Grow

Source: Energy Ventures Analysis, 2014 Long-term Outlook Fuelcast

2015 2016 2017

76

2.8

2.4

0.1

77

2.9

2.7

0.7

79

3.3

3.2

2.5

LNG exports

Mexican exports

Canadian exports

U.S. consumption

Average Bcf/day

CHALLENGES???

Major Pipeline Projects Certificated (MMcf/d)

January 2000 to December 2014

Transco

Southern

Kern River

6

North Baja

(500, 81 614)

Tuscarora (96)

Northwest

Kern River

TETCO (250)

Northwest

NFG/DTI/Tenn 1

2 3

4

Northwest

East Tennessee (225)

Tennessee (320)

El Paso

WBI

30

27 Cheyenne Plains (560,170)

29

8

Discovery

Transwestern

5

Trunkline(1,500)

Trunkline (200)

Questar

6

GTN

Florida Gas

East Tenn. (170)

7

9

Millennium

10

11

Southern Trails (120)

Gulfstream

12 Trailblazer (324)

26 28

El Paso

(502)

Center Point (113,132)

Golden Pass (2,500)

31 32

Dominion South (200)

Columbia

East Tenn. (86)

Tennessee (400,200,100)

East Tenn. (276, 150)

Midwestern

(120)

8

13

Cameron (1,500,850,

2,330)

Cheniere Creole Trail

14

33

Questar Overthrust

Center Point (1,237, 280, 274)

Equitrans

(130)

15

Gulf LNG (1,500)

16

Transco

34

Trunkline (510)

TETCO (150, 150, 455, 425)

Kinder Morgan

Natural (200,300)

17

Rockies Express East (1,800)

Midcontinent Southern/Magolia

35

Dominion

MarkWest (638)

18

19

118.40 BCF/D Total 16,507 Miles

26. CIG 27. CIG 28. TransColorado 29. WIC 30. El Paso 31. Rendezvous 32. Entrega 33. Northwest 34. Rockies Express West 35. White River Hub 36. Northwest 37. Rockies Express 38. Sundance Trail (Northwest) 39. Diamond Mountain (WIC) 40. DCP Midstream 41. CIG

1. Algonquin 2. Dominion 3. Iroquois 4. Columbia 5. Algonquin 6. Transcontinental 7. Transcontinental 8. Transcontinental 9. Columbia 10. Maritimes 11. Algonquin 12. Tennessee 13. Tennessee 14. Transco 15. Algonquin 16. Algonquin 17. Empire 18. Texas Eastern 19. Algonquin 20. Tennessee 21. Central NY 22. TETCO & Algonquin 23. Tennessee 24. Transcontinental 25. Constitution Pipeline/Iroquois

36

37 38

Port Dolphin

39

Ruby Pipeline

Tiger

20

TETCO (112)

21

Dominion

Tennessee & Dominion

40

NFG (163)

22

23

Bluewater (300)

El Paso

(366, 237)

Atlas (150)

El Paso

24

Gulf Shore

Dominion (270, 92)

Northwest

41

Discovery (405)

KM Texas (275)

Gulf Crossing

NET Mexico

Transco (270)

Houston Pipe Line

Sierrita Gas

25

Cheniere Corpus Christi

Challenges: Environmental Opposition Petitions and Protests

Create Era of Unprecedented Activism at FERC

Abundant natural gas supply continues growth

Efficiency and technology improvements

continue- What’s next?

Growing market opportunities include electric,

industrial, exports, marine, rail

New pipeline and storage infrastructure

SUMMARY: Bright Future for Natural Gas