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Northeast Energy Direct Project
A Transformative Energy Solution for New England
NGA “2015 Regional Market Trends Forum”April 23, 2015
Curtis ColeDirector, Business Development
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Marcellus Shale
Utica Shale
Southeast
Northeast
EagleFord Shale
Haynesville Shale
System Overview Proudly providing reliable service to
New England for over 60 years 11,900 miles of pipeline 92 Bcf of storage capacity ~9.0 Bcf/d – design capacity 1.4 million horsepower >500 FT customers 35 MM households equivalent Delivered ~390 Bcf to New England
customers in 2012 Abundant & Growing Supply
— Marcellus, Utica, Eagle Ford, Haynesville, Fayetteville
Tennessee Gas Pipeline
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Provides for gas and electric reliability throughout the northeast
Transformative solution that will lower gas prices in the northeast and energy costs for the consumer
Independent studies support the need for additional pipeline infrastructure in New England
A project with committed market participants
Any regional solution to address electric reliability should apply to power plants along the TGP system –and must include NED
NORTHEAST ENERGY DIRECT
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Enough Supply for 1.5 Million Households
Physical, direct connection to incremental regional supplies
91% mainline co-located in existing corridors
Transformative NED Project links INCREMENTAL, large volume and prolific Marcellus supplies to New England
NORTHEAST ENERGY DIRECT (NED)
Marcellus
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Provides direct access to incremental supply from the most prolific shale play in the US Marcellus, Utica growing supplies Over 6 BCF/d Marcellus Supply on TGP post NED
Designed to serve new and existing gas and power markets New and existing gas and power markets along TGP and NED corridors Gas and power markets on the Algonquin system via HubLine and Mendon Gas and power markets on the Iroquois system via interconnect @ Wright Gas and power markets in Maine and Atlantic Canada via M&NP and PNGTS
Economy / consumers New gas service New generation in the “right spots” New industry Lower prices for consumers
NORTHEAST ENERGY DIRECT - PROJECT BENEFITS
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Executed ~500,000 Dth/d of Anchor Shipper Precedent Agreements with key New England LDCs, including:
National Grid (MA) & (RI) (186,963 Dth/d) Liberty Utilities (Energy North Natural Gas) Corp. (NH) (115,000 Dth/d) Columbia Gas of Massachusetts (MA) (114,300 Dth/d) The Berkshire Gas Company (MA) Connecticut Natural Gas Corporation (CT) Southern Connecticut Gas Corporation (CT) Westfield Gas & Electric (MA) …and others
Additional Precedent Agreement negotiations ongoing
Participant in Maine PUC pipeline proceeding
NORTHEAST ENERGY DIRECT - COMMITTED MARKET
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TGP CURRENT DIRECT SERVICE TO NEW ENGLAND POWER GENERATIONTGP currently serves approximately 5079 MW in New England
NED will increase TGP’s ability to serve power generation
Power Plant Name MWHeatRate
ANP Blackstone Energy Project 578 6799Berkshire Power 289 7291Capitol District Energy Center 78 9287Granite Ridge 900 6895L Energia Facility 85 8255Lowell Cogeneration 34 13379Masspower 261 7625Milford CT 578 7098Millennium Power 360 7526Ocean States I 254 7862Ocean States II 254 7828Pawtucket Power Associates 69 8616Pittsfield Generating Co LP 173 7881Rhode Island State Energy (FPLE) 596 6926Stony Brook (MA) 350 8671Waters River 44 13172West Springfield 120 9615Windsor Locks 56 8309
Grand Total/Avg 5,079 7,552
7Source: Velocity Suites
NORTHEAST ENERGY DIRECTCRITICAL TO NEW ENGLAND GENERATION
Direct access to low cost, incremental, abundant supply
Replaces declining Atlantic Canadian natural gas supplies
Supplies M&NP power load
Provides incremental supply and high pressure to Algonquin via HubLine where it is critically needed
Proximity to Mass Hub - likely siting of new generation
In discussion with 3,400 MW proposed new generation
NED can provide incremental supply to majority of New England gas fired generation
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PIPELINE EXPANSIONS – PRICING IMPACT
Rockies Express• REX to Clarington, OH 1.8Bcf
Barnett Shale • Centerpoint Carthage-Perryville 1.9Bcf• Boardwalk Gulf Crossing: 1.7Bcf• Mid-Continent Express to Transco Station 85: 1.8Bcf
Incremental supply at significant volumes directly lowers energy cost
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Firm contractual path from Marcellus
Provides EDC with rate certainty
Customized services including no-notice, linepack services, hourly flexibility
EDC volumes add to well defined project with diverse customer commitments
TGP PROPOSAL FOR EDC
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Provides for gas and electric reliability throughout northeast
Transformative solution that will lower gas prices in New England and energy costs for the consumer
Provides direct access to incremental supply from the most prolific shale play in the US
NED will be a critical component to any regional solution to address electric reliability
NORTHEAST ENERGY DIRECT –ESSENTIAL & COMPLETE SOLUTION
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NED Contact Information
Business DevelopmentBecky Mack713-420-4656
Project Website: www.kindermorgan.com/business/gas_pipelines/east/neenergydirect/
Public Affairs/Project OutreachAllen Fore
Media RelationsRichard Wheatley
713-420-6828Richard_Wheatley@Kindermo
rgan.com
Business DevelopmentCurtis Cole
Business DevelopmentCoralie Sculley713-420-6336
Business DevelopmentDodson Skipworth
713-420-2727Dodson_Skipworth@Kindermorgan.
com
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