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1 1 Tennessee Gas Pipeline Shipper Meeting October 1 st – 3 rd , 2014

Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Page 1: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Tennessee Gas Pipeline

Shipper Meeting

October 1st – 3rd , 2014

Page 2: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Forward-Looking Statements / Non-GAAP Financial Measures

• This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not

relate strictly to historical or current facts. In particular, statements, express or implied, concerning future actions, conditions or events,

future operating results or the ability to generate revenues, income or cash flow or to make distributions or pay dividends are forward-

looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions.

Future actions, conditions or events and future results of operations of Kinder Morgan Energy Partners, L.P., Kinder Morgan

Management, LLC, El Paso Pipeline Partners, L.P., and Kinder Morgan, Inc. may differ materially from those expressed in these forward-

looking statements. Many of the factors that will determine these results are beyond Kinder Morgan's ability to control or predict. These

statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others, the

ability to achieve synergies and revenue growth; national, international, regional and local economic, competitive and regulatory

conditions and developments; technological developments; capital and credit markets conditions; inflation rates; interest rates; the political

and economic stability of oil producing nations; energy markets; weather conditions; environmental conditions; business and regulatory or

legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural products; the timing and success of

business development efforts; terrorism; and other uncertainties. There is no assurance that any of the actions, events or results of the

forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition.

Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking statement. Please read "Risk

Factors" and "Information Regarding Forward-Looking Statements" in our most recent Annual Reports on Form 10-K and our

subsequently filed Exchange Act reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website at

www.kindermorgan.com.

• We use non-generally accepted accounting principles (“non-GAAP”) financial measures in this presentation. Our reconciliation of non-

GAAP financial measures to comparable GAAP measures can be found in the appendix to this presentation and on our website at

www.kindermorgan.com. These non-GAAP measures should not be considered an alternative to GAAP financial measures.

Page 3: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Agenda

Thursday, October 2nd , 2014

8:45 a.m. Welcome Sital Mody

8:55 a.m. Pipeline Operations Update Ray Miller

9:30 a.m. Macro Overview and TGP changes Ernesto Ochoa

9:50 a.m. Break

10:00 a.m. Business Development Projects Preston Troutman

10:30 a.m. AccuWeather Winter Forecast 2014/2015 Bob Smerbeck

11:20 a.m. Closing Remarks and Q&A TGP Team

11:45 a.m. Lunch Hill Country Dinning Room

1:00 p.m. Afternoon Activities (As Selected)

6:30 p.m. Social and Dinner Governors Ballroom

7:00 p.m. Dinner Governors Ballroom

Page 4: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Pipeline Operations Update

Ray Miller

Page 5: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Agenda

• TGP System Overview

• Winter 2013 / 2014 Summary

• Summer Review

• Maintenance

• 2014 Expansion Projects

• Winter 2014 / 2015 Preview

• DART / Scheduling Update

• Gas & Electric Harmonization

Page 6: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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TGP Facility Map

Compressor Stations

Storage Fields St 527

St 823

Carthage

Bear Creek Storage

St 1

St 860

St 87

St 200

St 219

Niagara Spur

St 313

St 237 St 261

St 40

Lost Creek Storage

Colden Storage

Ellisburg Storage

Harrison Storage

Hebron Storage

St 47

St 245

H-C Line

St 315

St 321

Donna Line St 409

St 209

St 110

St 106 Broad Run

• Miles of pipe 12,000 miles

• Flow Meters 800

•Storage Capacity 92.1 BCF

• Mainline Linepack 12.5 BCF

•Winter Peak Day Delivery 10.2 BCF

Approximate values

Page 7: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Cold New England Weather

200

400

600

800

1000

1200

1400

Nov Dec Jan Feb Mar

HD

Ds

Winter 2013/14

Winter 2012/13

Winter 2011/12

30 Year Average

Page 8: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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2013/2014 Winter Overview

• Peak, total system deliveries on Jan 6 of 10.2 BCF • Winter system deliveries increased by about 4.5% over previous winter

– Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area

• Consistently moved .9 Bcf/d southbound from Pa. through station 219

– .6 Bcf/d southbound through station 200 from Oh. (currently ~1.2 Bcf/d)

• Storage cycled to low storage inventory late season – Colden, Ellisburg, and Harrison in the market on power withdrawal – Bear Creek in the field also on power withdrawal

• High utilization of compressor stations from Nov through Mar

– Emphasis was on maintaining high level of reliability – Station 254 outage impact

• More scheduling constraints due to high utilization – Path and point restrictions to firm services – Reduced flexibility for all shippers, particulary in zones 4,5 and 6

Page 9: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Difficult Operations at Times

Page 10: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Winter Total System Deliveries

2011-2012 2012-2013 2013-2014 % Change

LDC 1,565 1,830 1,986 +8.5%

Power 1,388 1,130 1,064 -5.8%

Interconnects 3,202 3,924 4,688 +20%

Other 491 572 62 -90%

TOTAL 6,646 7,455 7,799 +4.5%

• All volumes are MDth/d

Page 11: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Winter New England Deliveries

2011-2012 2012-2013 2013-2014 % Change

LDC 1,082 1,324 1,427 +7.8%

Power 463 346 267 -23%

Interconnects 346 468 1,280 +173%

TOTAL 1,889 2,137 2,974 +39%

• All volumes are MDth/d

Page 12: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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• All volumes are MDth/d

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

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

2011 2012 2013 2014 YTD

Winter New England LDC Deliveries

Page 13: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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13 Winter Period (Nov – Mar) Average Dth/d

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

08-09 09-10 10-11 11-12 12-13 13-14

Utica

Marcellus

Rex

Dracut

Distrigas

Wright

Shelton

Niagara

Winter New England Supply Analysis

Page 14: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Winter Days - (%) Restricted

Restriction Point Highly Utilized TGP Paths

Percentage Days Restricted (November - March)

2013/2014

Sta. 200 77.48%

Sta. 245 100%

Sta. 261 32.45%

Sta. 307 BH 56.29%

Sta. 315 BH 93.38%

Sta. 321 96.68%

MLV 336 80.79%

MLV 355 BH 58.94%

Sta. 1 BH 52.32%

Mahwah 56.29%

Rivervale 82.11%

Page 15: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Winter System Exports

0

100

200

300

400

500

600

700

800

900

1,000

2011 2012 2013 2014 YTD

Canada

Mexico

+80% -2%

+15%

• All volumes are MDth/d

Page 16: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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2014 Summer Overview

• System Demand is basically flat to the previous summer • Market Deliveries increase driven by Pipeline Interconnects

– Exports remain strong to Mexico and Canada

• System Power Plant demand is slightly lower than previous summer • Market Area Supply continues to increase

– Driven by increase in Utica and Marcellus Supply

• 200 line southbound volumes through Ohio remain at max available capacity

– Currently in the 1.1 – 1.2 Bcf/d Range

• 500 line southbound volumes through Sta 860(TN) have increased significantly – Currently in the 700 – 750 mmscf/d range (last year in the 150-200 mmscf/d range)

• South Texas Supply remains strong

• Firm Storage Service (FSS) continues to track below average

Page 17: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Summer Total System Deliveries

2012 2013 2014 % Change

LDC 840 881 831 -5.6%

Power 1,736 1,353 1,276 -5.6%

Interconnects 3,214 3,558 4,301 +21%

Other 450 540 56 -90%

TOTAL 6,240 6,332 6,464 +2%

• All volumes are MDth/d

Page 18: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Summer New England Deliveries

2012 2013 2014 % Change

LDC 531 571 556 -2.6%

Power 565 542 478 -12%

Interconnects 388 393 1,217 +210%

TOTAL 1,484 1,506 2,251 +50%

• All volumes are MDth/d

Page 19: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Summer Total System Power Deliveries

• All volumes are MDth/d

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2008 2009 2010 2011 2012 2013 2014

Zone 6

Zone 5

Zone 4

Zone 2

Zone 1

Zone 0

+2.5%

+25%

+7.5%

+21.5%

-22%

-5.6%

Page 20: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Summer New England Supply Analysis

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2009 2010 2011 2012 2013 2014

Dracut

Distrigas

Shelton

Wright

Niagara

Marcellus

Utica

Rex

• All volumes are MDth/d

+99%

+54%

+12% +1%

+46%

Page 21: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Summer Days - (%) Restricted

Restriction Point Highly Utilized TGP Paths

Percentage Days Restricted (April –

October)

2014 (Apr- Sept)

Sta. 1 BH 70.62%

Sta. 200 68.93%

Sta. 245 98.31%

Sta. 307 BH 84.75%

MLV 314 BH 33.33%

Sta. 315 BH 99.44%

Sta. 321 89.27%

MLV 355 35.02%

Mahwah 96.61%

Rivervale 22.60%

Page 22: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

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

BC

F

2000-2001

2002-2003

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

5 Year Average 2008-2013

2013-2014

443 Bcf < 2013; 463 Bcf < 5 Yr. Avg.

National Storage Activity As of 9-5-2014

2.801 Current Inventory

3.3 – 3.5 Projection

Page 23: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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National Storage Activity As of 9-5-2014

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

BCF

2013-2014 Winter Seasonal Record

Withdrawal 3.01 Tcf 1.97 Injected to date

Page 24: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Outage Planning Process

Gas Control – Planning

Group - Generates annual outage

schedule - Meet with all stakeholders - Maintains and modifies

master outage schedule - EBB Postings - Monthly Customer Webex

Field Operations Outages

- Scheduled Equipment and Pipeline Maintenance: Overhauls, Inspection, Repairs

- Emergent Issues: Equipment repairs, pipeline repairs

- Program Items: Engineering – Pipeline pigging and ILI, Equipment upgrades, etc.

Project Management Outages

- New equipment and facility installations

- Pipeline class changes and strength testing

- New pipeline installations

Master Annual Outage

Schedule - Updated based on Field

Operations and Project Management feedback

- Continuous Cycle

Page 25: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Hydrotest Work

Clearing and Grubbing

Pipe Replacement Test Heads

Page 26: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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2014 Maintenance – Zone 0 (October – EOY)

Unit Maintenance Sta. 409A (10/20/2014 - 10/24/2014)

Capacity of 340,000 reduced to 180,000

Page 27: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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2014 Maintenance – Zone 1 (October – EOY)

Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)

(M)(tentative dates)

Bi-Directional Station Work Station 860 (8/18/2014 - 12/19/2014)

Capacity of 650,000 reduced to 0 (seg. 847) Capacity of 996,000 reduced to 775,000 (seg. 548)

Class Change MLV 546-1 (8/19/2014 - 10/9/2014)

Pipe Replacement MLV 545-1 (11/1/2014 – 12/31/2014)

Bi-Directional Station Work Station 546 (7/2/2014 – 10/14/2014) Station 550 (9/5/2014 - 11/7/2014)

Station 542 (10/15/2014 - 11/12/2014) Capacity of 940,000 reduced to 700,000

Page 28: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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2014 Maintenance – Zone 2 (October – EOY)

Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)

(M)(tentative dates)

Bi-Directional Station Work Sta. 200 (8/4/2014 - 1/31/2015)

Anomaly Remediation MLV 110-2 to 114-2

(9/15/2014 - 10/6/2014) (10/1 – 10/5) (M)

Page 29: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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2014 Maintenance – Zone 4 (October – EOY)

Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)

(M)(tentative dates)

Hydrotest MLV 313-1 (8/28/2014 - 10/31/2014)

Capacity of 1,609,000 reduced to 1,585,000

Class Change MLV 324-1A (9/22/2014 - 10/15/2014)

Capacity of 1,719,000 reduced to 1,579,000 MLV 322-1 (10/15/2014 - 11/1/2014) (M)

Capacity of 1,719,000 reduced to 1,619,000

Station Maintenance Sta. 317 (10/20/2014 - 10/21/2014)

Capacity of 1,609,000 reduced to 1,559,000 Sta. 319 (10/22/2014 - 10/23/2014)

Capacity of 1,609,000 reduced to 1,559,000 Sta. 315 (10/27/2014 - 10/31/2014)

Capacity of 1,609,000 reduced to 1,425,000

Anomaly Remediation Various valve sections from Sta. 200 to Sta. 219,

Lines 1, 2, and 3 (4/28/2014 - 11/15/2014)

MLV 214-1 (9/22/2014 – 10/14/2014) (M)

Station Maintenance Sta. 214 (9/22/2014 – 10/14/2014)

Page 30: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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2014 Maintenance – Zone 5 (October – EOY)

Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)

(M)(tentative dates)

Station Maintenance/ESD Sta. 230C (10/20/2014 - 10/31/2014) (M)

Page 31: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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2014 Maintenance – Zone 6 (October – EOY)

Anomaly Remediation MLV 1-2D to 5-2 (10/1/2014 - 10/31/2014)

(M)(tentative dates)

Drip Removal MLV 261-1A & 2A

Line 1 (10/7/2014 – 10/10/2014) Capacity of 1,090,000 reduced to 665,000

Station Maintenance Sta. 260A (10/8/2014 – 10/8/2014)

Sta. 264 (10/13/2014 – 10/17/2014) Sta. 265E (10/20/2014 – 11/5/2014)

Unit Maintenance Sta. 261 (10/1/2014 – 10/3/2014) Sta. 266 (10/8/2014 – 10/8/2014)

Sta. 266 (10/15/2014 – 10/16/2014) Sta. 266 (11/11/2014 – 11/12/2014)

Page 32: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Integrity Prove Up Dig - Ohio

Page 33: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Integrity Management In Line Inspection (ILI) and Pressure Tests

0

500

1000

1500

2000

2500

2012 2013 2014

ILI Projects - Miles

Miles With HCAs Miles Without HCAs

0

20

40

60

80

100

120

2012 2013 2014

Pressure Test Projects - Miles

Miles With HCAs Miles Without HCAs

• 352 projects completed through Sept 22

• Approximately 110 projects to complete by YE

• More added if unplanned outages occur

• 12 month running maintenance reminder on TGP EBB

Page 34: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Rose Lake Project - Station 317

Electric motor driven compressor with reversible operation

Page 35: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Rose Lake Project - Station 315

View of Coolers and Filter Separators

View looking South between Compressor Buildings

Page 36: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Operational Expectations

• Continued near full utilization of capacity both East and West from Marcellus and Utica

• Continued high utilization of 500 line southbound

• Increasing Eagleford volumes coming out of South Texas

• Exports to Mexico continue to increase

• High demand expected from the North to serve markets on the 500 line

• Exports to Canada will continue and possibly increase

• Maintenance scheduling on 100, 200, 300, 500, 800 lines may necessitate interruption

• Gas quality management will be focused on new supply sources as they come into the system

• Coincidental peak power and gas day may occur, TGP may be scheduling down to SIP at constraints and also managing non-ratable takes

• Storage may be limited to firm services during peak periods

Page 37: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Station 200 Reversal

Compressor Yard Work

Page 38: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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TGP DART UPDATE

• Implementation – October 1, 2013 • Recent changes completed

⁻ Imbalance windows ⁻ Multi – Level SIP ⁻ Sequential Meter List

• PAL Enhancements – target Dec 2014 • THANK-YOU!

New Path Scheduling Priority – Effective June 17, 2014 – PIP nominations – from primary receipt points to primary delivery points remains highest priority – Elevated SIP1 nominations – from secondary receipt points to primary delivery points, highest SIP

priority displayed as “SIPsp” – Elevated SIP2 nominations – from primary receipt points to secondary delivery points displayed as

“SIPps – Other SIP3 nominations – from secondary receipt points to secondary delivery points displayed as

“SIPss”

Page 39: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Gas/Electric Harmonization

• TGP and KM participating with NAESB, INGAA and other industry groups • “Scheduling NOPR” - Notice of Proposed Rulemaking on the Coordination

of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities (Docket No. RM14-2)

• Order Initiating Investigation into ISO and RTO Scheduling Practices and Establishing Paper Hearing Procedures, California ISO, et al. (Docket No. EL14-22 et. al.)

Page 40: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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FERC Scheduling NOPR

• FERC’s Goal: Change regulations for the scheduling of transportation services on interstate

natural gas pipelines to better coordinate the scheduling practices of the gas and electric industries and to provide scheduling flexibility to all shippers

• NOPR highlights:

• Start Gas Day at 4:00 a.m. CCT • Move the Timely nomination deadline to 1:00 pm CCT • Increase the number of intra-day nomination cycles from 2 cycles to 4 cycles • Require all interstate pipelines to offer multi-party service agreements for firm service

• Timeline:

• Sept 29th – NAESB to file changes to standards based on industry consensus • Oct 31st – NAESB to file version 3.0 • Nov 28th – Scheduling NOPR comments due • Final Order on Scheduling NOPR • After Final Order – NAESB will have 90 days to file changes to standards

Page 41: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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NAESB Process To Date

• Series of four, 2-day, Gas Electric Harmonization meetings (GEH) (April 21- June 3)

• 220 - 300 individuals attended each session from both Gas and Electric industries • 13 different presentations from industry representatives with much discussion • 56 Non-binding straw votes held to get a “sense of the room” • “Super Majority” voting on strawman packages – no “official” consensus

• Gas Day start - Disagreement as to 4 am versus 9 am start • Scheduling cycles – general agreement on 3 intraday cycles and timelines

• NAESB Board of Directors on June 4th approved standards development to:

• Match the cycle timelines of the GEH • Remain “neutral” on Gas Day start • Change any corresponding standards – mainly Capacity Release

• NAESB filed report of progress to FERC on June 18th

Page 42: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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NAESB Process Upcoming

• Prepare and file NAESB standards filing with FERC – September 29, 2014

• Approximately 80 standards will be changed by the Wholesale Gas Quadrant • Member ratification needed

• NAESB 3.0 standards to be filed with FERC – October 31, 2014

• When filed will include GEH and Version 2.1 filings

• Wait for new NOPR or Order from FERC to adjust standards – 1Q/2Q 2015 earliest • Order on GEH

• Gas Day “neutral” will need updating • File within 90 Days

• New NOPR, Version 3.0

• Implementation – 4Q 2015 earliest

Page 43: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

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Tennessee Gas Pipeline 24 Hour Contact List

Gas Control 24 hour and emergency

800-231-2800

Ganesh Venkateshan – Mgr. 713-420-2099 Cell –205-746-5752 Layne Sanders – Director 713-420-5024 Cell – 832-563-5024 Danny Ivy - VP 713-369-9311 Cell – 713-829-2761 Ray Miller – VP 713-369-9330 Cell – 713-206-8338

Transport and Storage Services 24 hour Scheduling Hotline 713-369-9683 Cathy Soape – Manager 713-420-3814 Cell – 713-922-5083 Marquette Williams – Manager 713-369-9336 Cell – 713-819-2555 Sherri Glazebrook – Director 713-420-3677 Cell – 281-678-1183 Gene Nowak – VP 713-369-9329 Cell – 713-252-9759

Commercial/Marketing Ernesto Ochoa – Director 713-420-1734 Cell – 281-414-3823 Sital Mody – VP 713-420-7336 Cell – 832-643-0042 Norman Holmes - VP 713-420-4442 Cell – 205-901-0456 Kim Watson – President 713-369-3229 Cell – 713-204-5423

Field Operations Ron Bessette– Director (Northeast) 860-763-6027 Cell – 985-209-4478 John Pannel – Director (Central) 615-221-1511 Cell – 615-714-1930 Cy Harper – Director (South) 281-689-4534 Cell – 205-613-6701 Tom Dender – VP 205-325-3883 Cell – 7205-572-1549 Gary Buchler - VP 713-369-8463 Cell – 713-824-3904

Colorado Springs, CO Office 713-420-2600 Two North Nevada Ave Colorado Springs, Co 80903

Birmingham, AL Office 713-420-2600 569 Brookwood Village St Birmingham, AL 35209

Downers Grove, IL Office 630-725-3000 3250 Lacey Rd Suite 700 Downers Grove, IL 60515

Houston, TX Office 713-369-9000 1001 Louisiana St Houston TX 77002

Sept 2014

Page 44: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

44

44

Macro Overview and TGP Changes

Ernesto Ochoa

Page 45: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

The Macro View

Dramatic supply growth

Unconventional production: Marcellus, Utica, Eagle Ford

Growing long-term demand Economy Electricity / Industrial Gas

Changing trade balance Exports: Canada , LNG; Mexico

Infrastructure impetus New sources New plumbing New “last mile” infrastructure

45

Page 46: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Supply

Page 47: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Gas Demand

Page 48: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

48 Source: KM Aug, 2014 Macro Forecast

CANADA DEMAND Western Canada Oil Sands Eastern Canada Coal Generation Retirements All Canada: GHG Coal Replacement Policy

+2.2

CANADA SUPPLY WCSB Conventional Unconventional

+3.1

U.S. LNG EXPORTS +9.1

MEXICO IMPORT DEMAND Powergen and Industrial Growth Oil Conversion

+2.5

B.C. LNG EXPORTS +2.7

13.4 Bcf/d

Net Imports from Canada

LNG Exports

(2013–2023)

Changes Beyond Border

Page 49: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Linking the best markets to the best supply basins

Tennessee Gas Pipeline

Marcellus Shale Gas

Utica Shale Gas

LNG

Export

Canada

Southeast

New

England

EagleFord Shale Gas

Haynesville Shale Gas

Mexico

System Overview

13,900 miles of pipeline

~8 Bcf/d – design capacity

>500 FT customers

1.4 Million Horsepower

Long-term Growth Drivers

Demand growth across

system

Abundant & Growing Supply

— Eagle Ford, Haynesville,

Fayetteville, Barnett,

Marcellus & Utica

Page 50: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

50

Marcellus and Utica Shale Production

(Bcf/d)

SOURCE: Wood Mackenzie Long Term View, May 2014

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

202

1

202

2

202

3

202

4

202

5

Marcellus Northeast Marcellus Southwest Ohio Utica

Page 51: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Winter Period (Nov – Mar) Average Dth/d

Market Area Supply

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

08-09 09-10 10-11 11-12 12-13 13-14

Utica

Marcellus

Rex

Dracut

Distrigas

Wright

Shelton

Niagara

Page 52: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

52

52

TGP Demand – System Wide

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

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

2011 2012 2013 2014 YTD

• All volumes are MDth/d

Page 53: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

53

53

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2010 2011 2012 2013 2014*

Z6

Z5

Z4

Z3

Z2

Z1

ZL

Z0

TGP Increasing Annual Throughput

*2014 through August

MD

th/d

Page 54: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

System Flows - 2007

54

800 Line

500 Line

200 Line

300 Line

100 Line

200 Line

Traditional Long-haul Pipe

• South to north flow

• Limited market area supply

• High middle-system utilization

• ~1.8 MMDth/d at Sta 87

Sta 87

Page 55: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

System Flows – 2010-2011

55

800 Line

500 Line

200 Line

300 Line

100 Line

200 Line

Bifurcated Pipe

• Marcellus~1.6 MMDth/d

• Rex flowing in Ohio

• Low middle-system utilization

• ~500 MDth/d at Sta 87

Sta 87

Page 56: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

System Flows – 2014

56

800 Line

500 Line

200 Line

300 Line

100 Line

200 Line

Long Haul Once Again

• Marcellus ~3.5 MMDth/d

• Utica ~600 MDth/d

• Increased Middle System

utilization (in reverse)

• ~1 MMDth/d South flow at Sta 87

Sta 87

Page 57: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

System Flows – 2016, 2017, Beyond

57

800 Line

500 Line

200 Line

300 Line

100 Line

200 Line

Reversal Continues

• 100/800 Legs catch up

• South flow expansions complete

• Z1/0 Market driven by Exports,

Industrial, and South East

Demand

Sta 87

Page 58: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

58

Business Development Projects

Preston Troutman

Page 59: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

TGP’s Recent Development

Project Dth/d Shippers In-Service Status

Utica Backhaul 500,000 Various Producers April 2014 In-Service;

500 Leg modifications ongoing

Rose Lake 230,000 South Jersey Res., Statoil Nov. 2014 Under Construction

Uniondale 34,000 UGI Resources Nov. 2014 Under Construction

Niagara Expansion 158,000 Seneca Resources Nov. 2015 FERC Application Pending

EA issued July 16, 2014

CT Expansion 72,100 Yankee Gas, Southern CT Gas,

Connecticut Natural Gas

Nov. 2016 FERC Application

Submitted July 31, 2014

Susquehanna West 145,000 Statoil Nov. 2017 PAs executed

Broad Run Projects 790,000 Antero Resources Nov. 2017 Final Engineering / Permitting

SW Louisiana Supply 900,000 Mitsubishi, MMGS Nov. 2017 PAs executed

NED - Market 600,000 –

1,200,000

In Active Development Nov, 2018 In Active Development

NED – Supply 800,000-

1,000,000

In Active Development Nov, 2018 In Active Development

South System

Flexibility

500,000 TBD

Anchor Shipper secured

Jan. 2015 Open Season – in progress

59

Continued Development Success

Page 60: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

60

Utica Backhaul Transportation

Commercial Driver:

— SW Marcellus/ Utica production

to Gulf Coast markets

Capacity: 500,000 Dth/d

Customers: Range, Gulfport, Kaiser

Energy, SWN, Vantage, CHK

Project Scope:

— Pipe modifications at 8

compressor stations

Current Status:

— Project in service April 2014

— 500 Leg modifications underway

Page 61: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Rose Lake Project

Project Scope:

— Station 315 - New compression

— Station 317 - Miscellaneous

— Station 319 - New & replacement compression

Current Status:

— Construction began in April 2014

— In-service on November 1, 2014

Commercial Driver: Northeast Marcellus

to points of liquidity

Capacity: 230,000 Dth/d

Customers: South Jersey Resources

Statoil

In-service: November 2014

61

Transco

Millennium

Nat’l Fuel

Dominion

Rose Lake

Sta. 219 Pool

Statoil

South Jersey

Page 62: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

62

Uniondale Project

Commercial Driver: Market driven project to

serve UGI customers in NE Pennsylvania

Capacity: 34,000 Dth/d

Customer: UGI Resources

In-service: November 2014

Project Scope:

— Sta 321 – Inlet air cooling

Current Status:

— Construction activities complete

— Facilities placed in service

Transco

Millennium

Nat’l Fuel

Dominion Uniondale

Sta. 219 Pool

Page 63: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Niagara Expansion

Commercial Benefit: Northeast

Marcellus to eastern Canadian markets

Capacity: 158,000 Dth/d

Customer: Seneca

Estimated In-service: November 2015

Project Scope:

— 3.1 miles of 30-inch pipe looping

— Station 229 meter facilities

— Lease on National Fuel Gas

Current Status:

— EA issued on 7-16-2014

— Pre-construction activities underway

63

Page 64: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Connecticut Expansion Project

Commercial Benefit: Additional

capacity to serve New England market

Capacity: 72,100 Dth/d

Customers: Yankee, Southern CT, CT

Natural

Estimated In-service: November 2016

Project Scope:

— 13.3 miles of pipeline loop

— Acquisition of Thompsonville

Lateral

Project Status:

— Contracts executed

— Lateral acquired

— July 31, 2014 FERC filing

64

Page 65: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

65

Susquehanna West

Transco

Millennium

Nat’l Fuel

Dominion

Rose Lake Statoil

Project Scope:

— 8.2 miles of 36” pipeline loop

— Incremental compression

– Sta. 317

– Sta. 319

Current Status:

– Field surveys underway to support FERC filing

– Anticipate FERC filing late 1Q2015

Commercial Driver: Northeast Marcellus

to points of liquidity

Capacity: 145,000 Dth/d

Customer Statoil

In-service: November 2017

Page 66: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

66

Broad Run Flexibility Project

Commercial Driver:

— SW Marcellus/ Utica production

to Gulf Coast markets

Capacity: 590,000 Dth/d

Customer: Antero Resources

Estimated In-service: November 2015

Project Scope:

— Pipe modifications at 6

compressor stations

— Class changes along 4 segments

Current Status:

— Station work ongoing

— Pipeline work expected in 2015

Page 67: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

67

Broad Run Expansion Project

Commercial Driver:

— SW Marcellus/ Utica production

to Gulf Coast markets

Capacity: 200 MDth/d

Customer: Antero Resources

Estimated In-service: November 2017

Project Scope:

— New compression at 3

existing stations

— New compression at 2

Greenfield stations

Current Status:

— Permitting and final engineering

— FERC filing anticipated 01/15

Page 68: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Southwest Louisiana Supply Project

Commercial Driver: Supply from multiple basins to Cameron LNG Export Facility

Capacity: 900 MDth/d

Customer: Mitsubishi, MMGS

Estimated In-service: 2018

Project Scope:

— Compressor station modifications to accommodate bi-directional flow

— 18,000 HP of new compression

— New pipeline laterals for enhanced supply access to the Perryville Hub

Project Status:

— Cameron LNG received all regulatory approvals

— Cameron LNG began pre-construction activities

— TGP to file FERC application in Q4 2015

68

Page 69: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

TGP Secured Projects

Supply driven, new markets emerging

Northeast Marcellus

Southwest Marcellus / Utica

Market Pull

Shorthaul services

Competition with SW

Marcellus/Utica

Strong development

GOM / SE markets

Supply Driven Expansions

Market Growth in South & Southeast

Supply diversity

GOM markets

LNG Exports

Page 70: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Linking the best markets to the best supply basins

Next Expansion Projects

Southwest LA

LNG Export

Southeast

New

England

Mexico

Drivers

1. Market need in New England

2. Continued Supply growth

Northeast Marcellus needs additional

pipeline infrastructure to grow

Southwest Marcellus & Utica

continues rapid growth; seeks new

markets

3. Southern markets desire supply diversity

Page 71: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Northeast Energy Direct Project (NED) – Market Path

Capacity: Scalable 0.8 – 2.2 Bcf/d

In-Service: Nov, 2018

Project Scope:

− ~177 miles new and co-located pipe

− ~73 miles of market delivery laterals

Commercial Benefit:

− Eliminates key bottlenecks

− Supply Optionality @ Wright, NY

− TGP 200 Line

− NED – Supply

− Constitution / Iroquois Gas

− Reduces energy costs region-wide

− Spurs economic growth region-wide

− Incrementally enhances TGP operations and

benefits entire region

Current Status:

− Agreements for ~500 MDth/d with LDC’s

− Negotiations with additional customers ongoing

− Applied to open FERC pre-filing proceeding

71

Page 72: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Capacity: Scalable 0.6 – 1.0 Bcf/d

In-Service: Nov, 2018

Project Scope:

− ~135 miles of greenfield 30” pipe

− ~32 miles of 36” looping (TGP 300 Line)

− Compression required for subscription

level

Commercial Benefit:

− Provides producers with direct access to

Northeast markets

− Provides New England markets with

incremental, direct access to Northeast

supply

− TGP’s existing regional network

− Broad range of suppliers

− Incremental supply liquidity at Wright, NY

Current Status:

− Negotiations with customers ongoing

− Applied to open FERC pre-filing

proceeding

72

Northeast Energy Direct Project (NED) – Supply Path

Page 73: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Southwest Marcellus / Utica Project

Continued supply growth

— Southwest Marcellus

— Utica

Unprecedented pipeline growth

— Existing pipelines reversed

— Need for additional pipelines

Emerging markets

— Southwest LA

— Texas / Mexico

— Southeast

— Other

Page 74: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Southwest LA / Texas Markets Market opportunities:

LNG Exports

Mexico market

Industrials

Opportunity:

Link to diverse supply basins

— SW Marcellus

— Utica

— Station 87

— Perryville

Sta 87

Pool

Sta 47

Sta

534

Pool

LNG

Facilities

Corpus Christi

2.1 Bcf/d

Lavaca Bay

1.4 Bcf/d

Freeport

2.8 Bcf/d

Golden Pass

LNG 2.0 Bcf/d

Sabine Pass

2.2 -3.0 Bcf/d

Lake Charles

2.0 Bcf/d

Cameron

1.7 Bcf/d

NET Mexico

2.0 Bcf/d

Page 75: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

South System Flexibility Project

Sta 87

Pool

Commercial Driver:

— Increased South Texas/Mexico

demand

— Desire to “reach” to diverse supply

basins at Station 87

Capacity: 500,000 Dth/d

Customer: TBD (Anchor Shipper secured)

Estimated In-service: December 2016

Project Scope:

— Bi-directional station modifications

— Appurtenance facilities

Project Status:

— Binding open season closes

10/14/14

NET Mexico

Interconnect

Page 76: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

Tennessee Gas Pipeline – Your Partner for Development

Shale continues to change the landscape New markets desire diverse supply basins Tennessee Gas Pipeline has successfully met producer and market needs

We look forward to future infrastructure projects to support your growth

Page 77: Tennessee Gas Pipeline Shipper Meeting October 1st 3 , 2014 · – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area •

77

Thank You.