Mexico, a New Landscape
Ernesto Ochoa
Tennessee Gas Pipeline
September 14, 2017
Ernesto Ochoa Tennessee Gas Pipeline Mexico, a New Landscape - - PowerPoint PPT Presentation
Ernesto Ochoa Tennessee Gas Pipeline Mexico, a New Landscape September 14, 2017 Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995
Tennessee Gas Pipeline
September 14, 2017
This presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934. 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 pay dividends are forward-looking
actions, conditions or events and future results of operations of 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
among others, the timing and extent of changes in the supply of and demand for the products we transport and handle; national, international, regional and local economic, competitive and regulatory conditions and developments; the timing and success of business development efforts; technological developments; condition of capital and credit markets; inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather conditions; environmental conditions; business, regulatory and legal decisions; terrorism, including cyber-attacks; 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
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.
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U.S. becomes net exporter Industrial demand growth Less Canadian Exports to U.S. More U.S. Exports to Mexico Continued supply increases Gas-fired generation increases
Source: ICF International and Kinder Morgan Analysis
+9.6 Bcfd Res +1.9 Bcfd +20.1 Bcfd +1.5 Bcfd
+7.7 Bcfd Ind +3.1 Bcfd
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BCF/d
Source: ICF International and Kinder Morgan Analysis
Well-positioned connecting key natural gas resources with major demand centers
__________________________ (a) Includes KM share of non-wholly owned projects. Includes projects currently under construction.
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Source: ICF International and Kinder Morgan Analysis
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Source: ICF International and Kinder Morgan Analysis
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SENER Forecasts demand in Mexico to grow by 1.3 Bcfd between 2016 and 2026
Imports are forecasted to grow by 850 MMcfd between 2016 and 2026 Production in Mexico is forecasted to grow 460 MMcfd from 2016 to 2026
24 GW of renewable power generation capacity being installed between 2016 and 2030 No natural gas storage in Mexico
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Noreste Noroeste Centro- Occidente Centro Sur-Sureste
Source: SENER
+440 +380 +700
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Demand (mmpcd)
Regional Demand Forecasts
Noroeste Noreste Centro-Occidente Centro Sur-Sureste
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Open to private investment
More merchant generation.
Shipper direction
New CENACE - Electricity Market Commences CENAGAS formed Round 0 Bidding Round 1 Bidding Additional bidding rounds CENAGAS Operating Gas Pipelines Energy Reform Authorized via change to Mexico’s Constitution Market-based gas pricing Petroleum product prices deregulated Mexico auctions pipeline capacity
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Law Pipeline Capacity Natural Gas Supply Storage / Balancing Transparent Pricing at “Liquid” HUBS
Need all to have a successful market
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Invested since 2013
supply to Mexico
Export Capacity
$Millions BCF/d BCF/d
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A B C D E F G HI J K L
1Capacity is based on North Baja pipeline which receives gas from EPNG 2Capacity based on Tejas, NGPL, and TGP delivery point capacities to NET Mexico
EPNG NGPL Midstream TGP Sierrita
Export Points
Capacity
North Baja 5001 Sierrita 200 Nogales 9 Willmex + Monument 187 El Fresnal 199 Douglas 117 Samalayuca + Cactus Hill 910 Border 300 Texas/Monterrey 700 Tejas to NET 7122 TGP Pemex 185 TGP Rio Bravo 320 TGP to NET 5132 NGPL to NET 5002
A B C D E F G H I J K L M N M N
MEXICO
16 NET Mexico Rio Bravo Reynosa
Marcellus 19.8 Bcf/d Haynesville 6.7 Bcf/d Eagle Ford 6.4 Bcf/d Fayetteville 1.1 Bcf/d Utica 4.6 Bcf/d Barnett 3.4 Bcf/d
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(300,000) (200,000) (100,000)
200,000 300,000 400,000 1/1/2005 1/1/2006 1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 Dth
Pemex Net Flows
100,000 150,000 200,000 250,000 300,000 350,000 1/1/2005 1/1/2006 1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 Dth
Rio Bravo Deliveries
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200,000 300,000 400,000 500,000 600,000 Dth/d
NET Deliveries
19 2 4 6 8 10 12 14 16 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Bcf/d CA AZ West TX South TX Imports (Forecast)
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Valley Crossing 2.6 Bcf/d (Oct-18)
Agua Dulce
NET Mexico 2.1 Bcf/d TETCO 0.3 Bcf/d
TGP 0.5 Bcf/d
2019 Demand 9.6 Bcf/d
LNG 2.1 Bcf/d KM Border / Mier 1.0 Bcf/d Other 1.0 Bcf/d
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Delaware Basin Midland Basin
KATY MARKETS LNG EXPORTS
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