Tennessee Gas Pipeline Shipper Meeting October 1 st 3 rd , 2014 1 - - PowerPoint PPT Presentation

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

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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.

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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

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Pipeline Operations Update Ray Miller

5 5

Agenda

• TGP System Overview
• Winter 2013 / 2014 Summary
• Summer Review
• Maintenance
• 2014 Expansion Projects
• Winter 2014 / 2015 Preview
• DART / Scheduling Update
• Gas & Electric Harmonization

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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

7 7

Cold New England Weather

200 400 600 800 1000 1200 1400 Nov Dec Jan Feb Mar HDDs Winter 2013/14 Winter 2012/13 Winter 2011/12 30 Year Average

8 8

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

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Difficult Operations at Times

10 10

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

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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

12 12

• All volumes are MDth/d

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

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

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

14 14

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%

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Winter System Exports

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

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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

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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

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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

19 19

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%

20 20

Summer New England Supply Analysis

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%

21 21

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%

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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

BCF

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

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National Storage Activity As of 9-5-2014

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

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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

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Hydrotest Work

Clearing and Grubbing Pipe Replacement

Test Heads

26 26

2014 Maintenance – Zone 0 (October – EOY)

Unit Maintenance

• Sta. 409A (10/20/2014 - 10/24/2014)

Capacity of 340,000 reduced to 180,000

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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

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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)

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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)

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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)

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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)

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Integrity Prove Up Dig - Ohio

33 33

Integrity Management

In Line Inspection (ILI) and Pressure Tests

500 1000 1500 2000 2500 2012 2013 2014

ILI Projects - Miles

Miles With HCAs Miles Without HCAs 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

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Rose Lake Project - Station 317

Electric motor driven compressor with reversible operation

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Rose Lake Project - Station 315

View of Coolers and Filter Separators View looking South between Compressor Buildings

36 36

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

37 37

Station 200 Reversal

Compressor Yard Work

38 38

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”

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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
• f 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.)

40 40

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

41 41

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

42 42

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

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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

44 44

Macro Overview and TGP Changes Ernesto Ochoa

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

Supply

Gas Demand

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

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

50

Marcellus and Utica Shale Production (Bcf/d)

SOURCE: Wood Mackenzie Long Term View, May 2014 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Marcellus Northeast Marcellus Southwest Ohio Utica

Winter Period (Nov – Mar) Average Dth/d

Market Area Supply

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

52 52

TGP Demand – System Wide

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

53 53

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

MDth/d

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

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

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

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

58

Business Development Projects Preston Troutman

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

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

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

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

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

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

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

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

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

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

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

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

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

 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

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Northeast Energy Direct Project (NED) – Supply Path

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

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

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

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

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Thank You.