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Tennessee Gas PipelineTennessee Gas Pipeline
Tennessee Gas Pipeline Co, LLC
Northeast Gas AssociationRegional Market Trends Forum
April 30, 2013
Preston TroutmanDirector, Business Development
Tennessee Gas PipelineTennessee Gas Pipeline
Kinder Morgan: Unparalleled Asset Footprint
2
3rd largest energy company – North America
Enterprise value ~ $110 billion (a)
Largest natural gas network in U.S.— Own an interest in / operate ~ 62,000
miles of natural gas pipeline— Connected to all important U.S.
natural gas resource plays Largest independent transporter of
petroleum products in U.S.— Transport ~1.9 MMBbl/d (b)
Largest transporter of CO2 in U.S.— Transport ~1.3 Bcf/d of CO2 (b)
Largest independent terminal operatorin U.S.— Own an interest in or operate ~180
liquids / dry bulk terminals— ~112 MMBbls domestic liquids capacity— Handle ~106 MMtons of dry bulk
products (b) Only Oilsands pipe serving West Coast
— TMPL transports ~300 MBbl/d to Vancouver / Washington State; expansion under way increasing capacity to 890 MBbl/d
__________________________(a) Combined enterprise of KMI, KMP & EPB as of
4/12/2013; see footnotes on slide 4 for furtherinformation.
(b) 2013 budgeted volumes. 4
Tennessee Gas PipelineTennessee Gas Pipeline
Natural Gas PipelinesSegment Outlook
Project Backlog: $2.8 billion of identified growth projects over next
five years (a), including:— TGP Northeast upgrade— LNG liquefaction (FTA @ Gulf & Elba Island)— SNG / Elba Express expansions— Sierrita lateral to Mexico border
Long-term Growth Drivers: Natural gas the logical fuel of choice
— Cheap, abundant, domestic and clean Unparalleled natural gas network
— Sources natural gas from every important natural gas resource play in the U.S.
• Eagle Ford, Marcellus, Utica, Uinta, Haynesville, Fayetteville and Barnett
— Connected to every major demand center in the U.S.
Demand growth and shifting supply from multiple basins
— Power / gas-fired generation— Industrial and petchem demand— Growth in Mexican natural gas demand— Repurposing portions of existing footprint— Greenfield development
Expand service offerings to customers LNG exports Acquisitions
Well-positioned connecting key natural gas resource plays with major demand centers
__________________________(a) Excludes acquisitions and dropdowns, includes KM's share
of non-wholly owned projects.Includes projects currently under construction. 3
Tennessee Gas PipelineTennessee Gas Pipeline
Mexico Demand
Southeast Demand
Northeast Demand
Utica Shale
LNG Export
Linking the best markets to the best supply basins
Tennessee Gas Pipeline
System Overview 13,900 miles of pipeline 1.4 million horsepower 7.2 Bcf/d – design capacity >500 firm transportation customers 35 MM households equivalent
Long-term Growth Drivers Demand growth across system Abundant & Growing Supply
— Eagle Ford, Haynesville, Fayetteville, Barnett, Marcellus & Utica
Tennessee Gas PipelineTennessee Gas Pipeline
TGP Demand GrowthSystem Wide
Avg Daily Deliveries (MDth/d)~ 40 % cumulative growth 2010 - 2012 6
0
2,000
4,000
6,000
8,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2011 2012 2013 YTD
Tennessee Gas PipelineTennessee Gas Pipeline
6
0
500
1,000
1,500
2,000
2,500
3,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2011 2012 2013 YTD
Avg Daily Deliveries (MDth/d)~ 28 % cumulative growth 2010 - 2012
TGP Demand GrowthNortheast
Tennessee Gas PipelineTennessee Gas Pipeline
7
0
400
800
1,200
1,600
2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avg MDth/d
2010 2011 2012 2013
Northeast Markets: ~ 40 %
TGP Power Generation FlowsSystem Wide
Tennessee Gas PipelineTennessee Gas Pipeline
8
0.000.400.801.201.602.002.402.80
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
Winter (Nov – Mar)Avg Bcf/d
Niagara (TGP) Shelton Wright Dracut Distrigas Stagecoach Marcellus REXREX
Station 219
0.00
0.40
0.80
1.20
1.60
2.00
2.40
2008 2009 2010 2011 2012
Summer (Apr – Oct)Avg Bcf/d
Bcf
/dB
cf/d
Station 219
Bcf
/dTGP – Market Area SupplyTraditional supply displaced
Tennessee Gas PipelineTennessee Gas Pipeline
* Tennessee’s 300 Line Expansion in service
LocationsPercent Days Restricted
(November - March)
10 / 11 11 / 12 12 / 13
Station 245 96 % 99 % 100 %
Station 254 0 % 0 % 65 %
Station 261 0 % 0 % 80 %
Station 325 87 % 7 %*
0 %
Station 315 25 % 91% 100 %
Station 321 48 % 9 % *
65 %
TGP – Northeast RestrictionsInterruptible Services: WINTER
Tennessee Gas PipelineTennessee Gas Pipeline
* Tennessee’s 300 Line Expansion in service
LocationsPercent Days Restricted
(April- October)
2010 2011 2012
Station 245 22 % 79 % 94 %
Station 315 0 % 81 % 100 %
Stations 321/325
12 % 73 % 0 %*
TGP – Northeast RestrictionsInterruptible Services: SUMMER
Tennessee Gas PipelineTennessee Gas Pipeline
TGP Northeast Supply PositionLarge & Growing
MARCELLUSMARCELLUS
UTICAUTICA
TGP – Direct Access to Northeast Gas Supplies
Marcellus Area Production (Q1 2013) ~ 9 Bcf/d – TGP Receipt capacity ~ 2.5 Bcf/d – Avg receipts –TGP ~ 8.5 Bcf/d – Avg receipts - All pipelines Continued growth coming 2015 fwd
UTICAUTICA
Utica Area Production TGP multiple lines through heart of production ~1.4 Bcf/d – TGP Receipt capacity underway Estimated Production
~ 1.5 Bcf/d by 2016; ~ 2.0 Bcf/d by 2018
Tennessee Gas PipelineTennessee Gas Pipeline
TGP – Northeast Development
Project Dth/d Shippers In-Service Status300L Project 350,000 EQT Energy Nov 1, 2011 In Service
NSD 250,000 Cabot, Seneca, Anadarko, Mitsui
Nov 1, 2012 In Service
Northampton 10,400 Berkshire, Bay State Nov 1, 2012 In Service
MPP Project 240,000 Chesapeake, Southwestern Nov 1, 2013 FERC Order received , On Schedule
NE Upgrade 636,000 Chesapeake, Statoil Nov 1, 2013 Construction, On Schedule
Rose Lake 230,000 South Jersey Res., Statoil Nov. 1. 2014 FERC Order pending, On Schedule
Uniondale 34,000 UGI Resources Nov. 1, 2014 FERC Prior Notice
CT Expansion 72,100 In Active Development Nov 1, 2016 In Active Development
Northeast Expansion TBD In Active Development TBD 2017 - 2018 In Active Development
• ~ $1.3 Billion Capital spent• Fully Subscribed• In Service On Time
• Development Continues
Tennessee Gas PipelineTennessee Gas Pipeline
13
TGP’s Connecticut Expansion
Wright
Connecticut Expansion Receipts: Northeast Shale; Wright, NY Deliveries: Connecticut In-service: November 1, 2016 Facilities: Pipeline looping on TGP 200
and 300 lines
Supports Connecticut’s Comprehensive Energy Strategy
Strategic expansion for TGP and the Connecticut customers
Provides access to Marcellus Shale Positions Connecticut for future growth
Tennessee Gas PipelineTennessee Gas Pipeline
14
Northeast Expansion ProjectOverview
New England Highest spot prices in US Capacity constraints into region Reduced deliveries from MN&E and Hubline
Production declines Decreased LNG imports
Market Need Need for additional capacity into the region Customer desire for Northeast Shale Large subscription level required Power market to be restructured
Timing is uncertain
Tennessee Gas PipelineTennessee Gas Pipeline
TGP’s Northeast Expansion Project
15
WrightDracut
PROJECT OVERVIEW 0.5 to 1.2 Bcf/d pipeline
Scaleable & Expandable Regional solution; 3rd pipeline
171 miles of loop & build; 60% existing corridors
Varied supplies at / near Wright, NY Maximizes market access & options
Firm capacity thru bottlenecks Incremental supply to traditional markets Option to serve markets further north Unique opportunity to expand
infrastructure Varied market sectors / participants
STATUS Significant interest received to date Negotiations continue Fixed negotiated rates; long term commitment Customized in-service date
Q4 2017 and beyond
Tennessee Gas PipelineTennessee Gas Pipeline
Commercial Contacts
16
Preston TroutmanDirector, Business Development
preston_troutman@kindermorgan.com713-420-3022 (o)713-206-3290 (c )
Becky MackManager, Business Development
rebecca_mack@kindermorgan.com713-420-4656 (o)832-405-3135 (c )
Dodson SkipworthAccount Director, Northeast
dodson_skipworth@kindermorgan.com713-420-2727 (o)713-823-7590 (c )
Tennessee Gas Pipeline Co., L.L.C1001 Louisiana StreetHouston, TX 77002
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