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Is Natural Gas Ready to Be the Fuel of the Future?

The Interstate Natural Gas Pipeline Industry Response

APPA CEO RoundtablePhoenix, AZ

March 15, 2011

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U.S. Natural Gas Pipeline Network, 2009          

Interstate Natural Gas Pipelines:A Robust Energy Highway

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A Highly Integrated Natural Gas Transmission Network

305,000 miles of natural gas transmission pipelines in U.S.

217,000 miles of interstate pipeline

88,000 miles of intrastate pipeline

1,400 compressor stations

11,000 delivery points, 5,000 receipt points, 1,400 interconnection points

24 market hubs

400 underground storage locations

49 pipeline export/import connections

8 LNG import terminals

Between 1997 and 2007, 53 pipeline companies reported that they spent $30.8 billion for interstate pipeline infrastructure. (2007 CWIP was $5.2 billion.)

Source: U.S. Department of Energy, Energy Information Administration

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6

1

23

4

43

27

24

26

8

54

5

3848

67

9

10

11

61

12

2325

42

40

13

28 29

45

4637

41

8

14

49

15

30

656667

16

17

31

6258

39

51 5253

44

47

56

50

18

57

Rockies Express East (1,800)

32 19

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Market Responsive Infrastructure Additions

115.00 BCF/D Total115.00 BCF/D Total16,178 Miles16,178 Miles152 projects

212 certificates

Colorado Corridor23 Projects

29 Certificates12,930 MMcf/d

New England Corridor22 Projects

31 Certificates9,773 MMcf/d

33

3435

59

36

Ruby Pipeline (1,456)

64

21

22

55

East Texas Corridor

18 Projects22 Certificates22,125 MMcf/d

60

63

Fayetteville Corridor

12 Projects23

Certificates20,240 MMcf/d

Major Pipeline Projects Certificated (MMcf/d)

January 2000 to February 2011

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Contrast with Electricity Transmission

345 kV

Transmission Projects

DC

765 kV

Source: FERC

Since 2000, 9 High Voltage (≥345kV)Interstate Transmission Lines have been built totaling 682 miles.

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Natural Gas Storage

Source: Energy Information Administration, Office of Oil & Gas, Natural Gas Division Gas, Gas Transportation Information System, December 2008.

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93 Certificated Storage

Projects Since 2000

for Expansion of or New Capacity

Source: FERC, Office of Energy Projects

Certificated capacity may not yet be fully operational

Natural Gas Storage:New and Expanded Capacity

933.175 Bcf working gas capacity

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Interstate Pipelines Are Key To Creating A Reliable Natural Gas

MarketThe United States is closer than ever before to being a single natural gas market with congestion limited to a few markets for a few periods

during the year.

The reason?

In addition to significant new recoverable reserves, important expansions and extensions of gas transmission capacity have reduced

the volatility of the price of gas delivered to the market.

Source: 2009 FERC State of the Market Report (released April 2010), page 14

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0

10

20

30

40

50

60

70

80

90

100

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010Calendar Year

Sustainable Operations and Safety Improvements-

Data: DOT/PHMSA Pipeline Incident Data (as of Jan. 19, 2011)

Long- term trend (average10% decline every 3 years)

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Transporting Natural Gas is Our Business.

Safety is Our CommitmentINGAA Pipeline Safety Task Force Guiding Principles

Our goal is zero incidents – a perfect record of safety and reliability for the national pipeline system. We will work every day toward this goal.

We are committed to safety culture as a critical dimension to continuously improve our industry’s performance.

We will be relentless in our pursuit of improving by learning from the past and anticipating the future.

We are committed to applying integrity management principles on a system-wide basis.

We will engage our stakeholders – from the local community to the national level – so they understand and can participate in reducing risk.

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Contact InformationR. Allan Bradley President & CEO

Questar Pipeline Companyallan.bradley@questar.com

Greg HarperSenior Vice President & Group President, Pipelines and Field Services

CenterPoint Energycg.harper@centerpointenergy.com

Donald SantaPresident and CEO

Interstate Natural Gas Association of Americadsanta@ingaa.org