Natural Gas Pipeline Company of - Kinder ... - Kinder...
Transcript of Natural Gas Pipeline Company of - Kinder ... - Kinder...
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Natural Gas Pipeline Company of America / Trailblazer Pipeline 2006 Customer Meeting
September 20 th
St. Andrews Country Club West Chicago, IL
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2006 Customer Meeting
l Welcome l Corporate Overview l Pipeline Management l Supply and Market Growth l Panel Discussion
Storage Development
l Business Development Projects
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Corporate Update
Steve Kean Chief Operating Officer
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This presentation contains forward looking statements, including This presentation contains forward looking statements, including these, within the meaning of Section 27A of the Securities Act these, within the meaning of Section 27A of the Securities Act of 1933, as amended, of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Forwar and Section 21E of the Exchange Act of 1934, as amended. Forward looking statements are not guarantees of performance. They in d looking statements are not guarantees of performance. They involve risks, volve risks, uncertainties and assumptions. The future results and securitie uncertainties and assumptions. The future results and securities values of Kinder Morgan Inc., Kinder Morgan Energy Partners, L s values of Kinder Morgan Inc., Kinder Morgan Energy Partners, L.P. and Kinder .P. and Kinder Morgan Management, LLC (collectively known as Morgan Management, LLC (collectively known as “ “Kinder Morgan Kinder Morgan” ”) may differ materially from those expressed in the forward ) may differ materially from those expressed in the forward looking statements looking statements contained throughout this presentation and in documents filed wi contained throughout this presentation and in documents filed with the SEC. Many of the factors that will determine these resul th the SEC. Many of the factors that will determine these results and values are ts and values are beyond Kinder Morgan's ability to control or predict. These sta beyond Kinder Morgan's ability to control or predict. These statements are necessarily based upon various assumptions involving tements are necessarily based upon various assumptions involving judgments with judgments with respect to the future, including, among others, the ability to a respect to the future, including, among others, the ability to achieve synergies and revenue growth; national, international, re chieve synergies and revenue growth; national, international, regional and local gional and local economic, competitive and regulatory conditions and developments economic, competitive and regulatory conditions and developments; technological developments; capital markets conditions; inflat ; technological developments; capital markets conditions; inflation rates; interest ion rates; interest rates; the political and economic stability of oil producing nat rates; the political and economic stability of oil producing nations; energy markets; weather conditions; environmental conditio ions; energy markets; weather conditions; environmental conditions; business and ns; business and regulatory or legal decisions; the pace of deregulation of retai regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural products; l natural gas and electricity and certain agricultural products; the timing and success of the timing and success of business development efforts; terrorism; and other uncertainties business development efforts; terrorism; and other uncertainties. You are cautioned not to put undue reliance on any forward . You are cautioned not to put undue reliance on any forward looking statement. looking statement.
In connection with the proposed Merger involving Kinder Morgan, In connection with the proposed Merger involving Kinder Morgan, Inc. (the Inc. (the “ “Company Company” ”), the Company will file a proxy statement with the Securities ), the Company will file a proxy statement with the Securities and Exchange Commission (the "SEC"). INVESTORS AND SECURITY HOL and Exchange Commission (the "SEC"). INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT DERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND THE PARTIES TO THE ABOUT THE MERGER AND THE PARTIES TO THE MERGER. Investors and security holders may obtain a free copy o MERGER. Investors and security holders may obtain a free copy of the proxy statement (when available) and other relevant docume f the proxy statement (when available) and other relevant documents filed with nts filed with the SEC from the the SEC from the SEC SEC’’s s website at http:// website at http://www.sec.gov www.sec.gov. The Company . The Company’’s security holders and other interested parties will also be abl s security holders and other interested parties will also be able to obtain, e to obtain, without charge, a copy of the proxy statement and other relevant without charge, a copy of the proxy statement and other relevant documents (when available) by directing a request by mail or te documents (when available) by directing a request by mail or telephone to Investor lephone to Investor Relations, Kinder Morgan, Inc., 500 Dallas Street, Suite 1000, H Relations, Kinder Morgan, Inc., 500 Dallas Street, Suite 1000, Houston, Texas 77002, telephone (713) 369 ouston, Texas 77002, telephone (713) 369 9490, or from the Company 9490, or from the Company’’s website, s website, www.kindermorgan.com www.kindermorgan.com. .
The Company and its directors, executive officers and other memb The Company and its directors, executive officers and other members of its management and employees may be deemed to be particip ers of its management and employees may be deemed to be participants in the ants in the solicitation of proxies from the Company solicitation of proxies from the Company’’s shareholders with respect to the Merger. Information about th s shareholders with respect to the Merger. Information about the Company e Company’’s directors and executive s directors and executive officers and their ownership of the Company officers and their ownership of the Company’’s common stock is set forth in the proxy statement for the Compa s common stock is set forth in the proxy statement for the Company ny’’s 2006 Annual Meeting of s 2006 Annual Meeting of Shareholders, which was filed with the SEC on April 3, 2006. Sh Shareholders, which was filed with the SEC on April 3, 2006. Shareholders and investors may obtain additional information regar areholders and investors may obtain additional information regarding the interests of ding the interests of the Company and its directors and executive officers in the Merg the Company and its directors and executive officers in the Merger, which may be different than those of the Company er, which may be different than those of the Company’’s shareholders generally, by s shareholders generally, by reading the proxy statement and other relevant documents regardi reading the proxy statement and other relevant documents regarding the Merger, which will be filed with the SEC. ng the Merger, which will be filed with the SEC.
Forward Looking Statements
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KM Overview
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Kinder Morgan Assets
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Pacific
Northern TransColorado
2 Pacific CALNEV
KMCO2
2
2 KMTP
KMTejas Wink
SACROC
Yates 7 5 2
2 2
Plantation Cypress
NGPL
8
Central Florida 4
2
2
2 4 3
2
2 3
2 KMIGT
Trailblazer
3
Cochin
North
Express
Platte
Corridor Trans Mountain
2
Claytonville
2
2
3
NGPL (KMI) NGPL GAS STORAGE (KMI) RETAIL GAS DISTRIBUTION (KMI) GASFIRED POWER PLANTS (KMI) PRODUCTS PIPELINES (KMP) PRODUCTS PIPELINES TERMINALS (KMP) TRANSMIX FACILITIES (KMP) NATURAL GAS PIPELINES (KMIKMP) NATURAL GAS STORAGE (KMIKMP) NATURAL GAS PROCESSING (KMIKMP) CO 2 PIPELINES (KMP) CO 2 OIL FIELDS (KMP) CRUDE OIL PIPELINES (KMP) TERMINALS (KMP)
KM HEADQUARTERS
TERASEN GAS (KMI) PETROLEUM PIPELINES (KMI) PETROLEUM PIPELINES TERMINALS (KMI)
(2,3,8) INDICATES NUMBER OF FACILITIES IN AREA
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Vision: Where We’re Going
l Growing Rockies Natural Gas Production
l Increased Supply of LNG on Gulf Coast
l Canadian Oilsands
l Increased Use of Heavy Crude
l Growing Coal Imports
l High Oil Prices – Leading to Demand for Enhanced Oil Recovery
l Natural Gas Price Volatility
l Demographic Growth in West and Southeast U.S.
l Increased Petroleum Products Imports
l Increased Ethanol Demand
KM Opportunity KM Opportunity Trend Trend
l Rockies Express
l Kinder Morgan Louisiana Pipeline
l Trans Mountain, Corridor pipeline expansions, Edmonton terminal
l Petcoke handling – Gulf Coast, Canada
l Pier 9, Shipyard River terminal expansions
l McElmo Dome, Doe Canyon CO 2 source field expansions, Cortez CO 2 pipeline expansion
l Sayre, North Lansing, Dayton storage expansions
l East Line, CALNEV expansions
l New York, Houston terminal expansions
l Storage expansions at Houston, Philadelphia Natural gas supply to ethanol plants thru KMIGT, NGPL, Retail
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Corporate Update
• Terasen
• Divestiture of U.S. Retail Business
• Oilsands
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Corporate Update: Terasen Operations
• Terasen Gas
• KM Canada
l Trans Mountain Pipeline
l Corridor Pipeline
l Express/Platte Pipeline
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Terasen Gas • 892K customers
• Serve 95% of BC customers
• 27K miles of pipeline
• Third largest gas utility in Canada
• Largest natural gas utility in the Pacific Northwest
• C$2.9B rate base
• C$275M EBIT (2005)
Whistler
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KM Canada
Corridor Corridor
Express/Platte Express/Platte
Trans Mountain Trans Mountain
• • Operator of 3 Oil Operator of 3 Oil Pipelines Pipelines
• • Sole Pipeline Sole Pipeline from Alberta to from Alberta to West Coast West Coast
• • Express is Express is primary line to primary line to PADD IV PADD IV
• • Platte serves Platte serves large PADD II large PADD II market market
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Corporate Update: Divestiture of U.S. Retail Operations
• Transaction:
Assets: U.S./Mexican LDCs, ~260,000 customers Buyer: GE Financial Price: $710M plus wc Close: anticipated in 1Q 2007
• Rationale:
— Attractive price, ~11x EBITDA
— Small footprint
— Provides platform for GE
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Corporate Update: The Canadian Oilsands Opportunity
• Over $125 billion in announced oilsands projects by producers over the next 10 years
l Production projected to almost triple 20052015
• Restricting factors:
l Heavyoil refining capacity
l Takeaway pipeline capacity
• Implications for U.S. Natural Gas Market
l Oilsands producers to become heavy users of natural gas
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__________________________ All amounts in U.S. dollars unless otherwise noted. (a) Source: CAAP Moderate Case, July 2005 Crude Production and Supply Forecast 20052015. (b) Source: NEB 2003 study “Canada’s Energy Future, Scenarios for Supply and Demand to 2025”.
Note: Total discovered recoverable reserves of crude and bitumen (Saudi values are proven reserves, implying higher degree of certainty).
(c) Source: DBRS October 2005 industry study “The Canadian Oil Sands”.
345 315 270
130 115 100 100 93 40 32
(reserves (billions of barrels)
0 500
1,000
1,500 2,000 2,500 3,000
3,500 4,000
2001 2003 2005 2007 2009 2011 2013 2015
Oilsands Pentanes/Condensate Conventional Heavy Conventional Light/Med
(MBbl/d)
Canadian Crude Production by Type Canadian Crude Production by Type (a) (a)
Production Costs: Mining Production Costs: Mining (c) (c)
Price = 3040% below WTI US $1922/Bbl Cdn $2226/Bbl Total Operating & Upgrade:
1 MMBbl/d Oilsandsonly
2.7 MMBbl/d
Mining Mining Upgrading Upgrading Refining Refining
Oilsands ~10%
CAGR ‘05‘15
CALGARY
EDMONTON
Peace River
Athabasca
Trans Mountain Pipeline
Corridor Pipeline
Express Pipeline
Alberta
HARDISTY
Cold Lake
0 50 100 150 200 250 300 350
Vene
zuela
Canada
Saudi
Arabia
Russia
Iraq
UAE
Kuwait
Iran
USA
Libya
Bitumen Oil
World Oil & Bitumen Reserves World Oil & Bitumen Reserves – – Top 10 Top 10 (b) (b)
Oilsands Production Areas Oilsands Production Areas (c) (c)
FT McMURRAY
Canadian Oilsands: Supply
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Major Canadian Oilsands Takeaway into the U.S. Major Canadian Oilsands Takeaway into the U.S.
__________________________ Note: Pipeline paths not drawn according to precise geographic location, but by general regional direction.
Fort McMurray
Cold Lake
Vancouver Anacortes
Guernsey Salt Lake City
Denver
Cushing
Chicago Detroit
Wood River
EAST
ERN CORRIDOR
PACIFIC
CORR
IDOR
(220 MBbl/d)
Midland
Patoka
Hardisty
Houston Freeport
Corpus Christi
Casper
Billings
PADD IV
PADD III
PADD II St. Paul
Regina
Toledo
Edmonton
SPEARHEAD
SOUTH
ERN ACCESS
TRANS
MOUNT
AIN
(225 MB
bl/d)
RANGELA
ND
(85 MBbl/d)
Calgary BOWRIVER
CEN
EX
(118 MBbl/d)
EXPRESS
(280 MBbl/d)
PLATTE (166 MBbl/d)
ENBRIDGE
(1,832 MBbl/d)
San Francisco
Los Angeles
El Paso
PADD V
Asia? 2.0 PADD II
2.6 Total 0.1 PADD V 0.5 PADD IV
Trunkline Capacity in to U.S.
(MMBbl/d)
California by water
Canadian Oilsands: Takeaway Capacity (PADDs II & IV Have the Most Access to Canada)
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Canadian Oilsands: KM Canada Opportunity Trans Mountain Expansions
1,100 MBbl/d
400 MBbl/d
700 MBbl/d
l TMX1 – C$595 million ⇒ additional 75 MBbl/d l Pump Station Expansion, C$230
million, 35 MBbl/d, insvc by April 2007
l Anchor Loop, C$365 million, 40 MBbl/d, insvc at end of 2008
l TMX2 – Loop between Valemont & Kamloops and back to Edmonton, C$900 million, 100 MBbl/d by 2010
l TMX3 – Loop between Kamloops & Lower Mainland, C$900 million, 300 MBbl/d by 2011
l TMX North – Line between Valemont & Kitimat, C$2.0 billion, 400 MBbl/d
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Canadian Oilsands: Implications for U.S. Gas Markets
• Oilsands producers will become heavy users of natural gas…
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1990 1992 1994 1996 1998 2000 2002 2004 2006E 2008E 2010E
Estimated Natural Gas consumption Estimated Natural Gas consumption in Alberta Oil Sand Projects in Alberta Oil Sand Projects (Bcf/d)
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Canadian Oilsands: Implications for U.S. Gas Markets
•…but Oilsands use only one factor in supply / demand balance
• LNG
• New Pipeline Infrastructure
• MacKenzie Delta
• Alaska?
0 2 4 6 8 10 12 14 16 18 20
1998 1999 2000 2001 2002 2003 2004 2005 2010 2015 2020 2025 2030
(Bcf/d) Proposed Mackenzie Delta Production
Production
Consumption
Exports Forecast
Canadian Natural Canadian Natural Gas Exports Gas Exports
1
0
1
2
3
4
5
1990 1995 2004 2010 2015 2020 2025
Canada
LNG
Mexico
Tcf
Forecast U.S. Natural Gas Supply by Source U.S. Natural Gas Supply by Source
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Pipeline Management
Ray Miller
VP Pipeline Management
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Pipeline Management l Spring/Summer 2006 Review l Winter 2006/07 Expectations l Summer 2007 First Look l Gas Quality Topics l Contact Lists
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Spring/Summer 2006 Review
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Spring/Summer 2006 Review l Transport Summary l Amarillo Line was highly utilized l Cross Haul Line was highly utilized l Gulf Coast Line fluctuated with market demand l Louisiana Line was highly utilized l Increased South Texas and TexOk deliveries l Increased Permian deliveries l Trailblazer was highly utilized
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Spring/Summer 2006 Review l Storage Summary l Storage has been unpredictable l Strong price spreads to future months l Market volatility and weather sensitivity l Aquifers on target l Finally… injections in September
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Spring/Summer 2006 Review
Market Storage
Field Storage
Nov Feb Apr Jun Aug Oct Dec Jan Mar May Jul Sep
Using Field (nonaquifer) to keep Market (aquifer) on target
Example Only
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Spring/Summer 2006 Review
50 40 30 20 10 0 10 20 30 40
2004 A
pr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2005 Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
2006 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
(est) S
ep
(est) O
ct
BCF
Monthly Injections/Withdrawals
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Spring/Summer 2006 Review Approximate Storage Balances on Nov 1st
0
50
100
150
200
250 1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
(est) 2006
BCF
Field Market
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Spring/Summer 2006 Review l Major 2006 Projects Completed
l HP replacement/expansion and automation at Station 155 l HP expansion at Station 801 l Piping modifications at Station 154 l Piping modifications at Station 303 l Supply additions near Station 304 l Supply addition at Station 802 l Major unit repair at Station 602 l Automation replacement at Station 198 l Automation replacement at Station 106
l Integrity 2006 Projects Completed l GC projects between Stations 302 and 308 l Amarillo projects between Stations 199 and 113 l Chicago area projects on Volo and Crawford systems l OE #2 line project near Station 154
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Spring/Summer 2006 Review l Major 2006 Projects Underway
l Electric system upgrades at Station 302 (Oct) l New HP installation at Columbus Junction storage (Oct) l HP replacement and piping changes at Sayre storage (Sep/Oct) l Piping modifications at Station 304 l New HP at Station 803 l Replace HP at Station 199 l Upgrade HP at Station 110 l HP replacement at Columbus Junction storage l Supply additions on Trailblazer l Class location regulation installation near Station 306
l Integrity 2006 Projects Underway l GC project near Station 310 l Amarillo project from between Station 112 and Station 192 l Chicago area project on Howard Street system
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Spring/Summer 2006 Review l Major 2006 Projects Planned
l Permian line lowering near Station 169 (Sep) l Meter station replacement at N. Lansing storage (Oct/Nov) l Piping modifications at Station 342 (Sep) l Loop construction at N. Lansing storage l Supply additions in on GC system near Carthage l Replace HP at Station 300
l Integrity 2006 Projects Planned l Class location pipe replacement between Station 302 and 343 (Nov) l Piping modifications at Station 199 (Sep) l Piping modifications at Amarillo Mississippi River crossing (Oct) l Class location regulation installation near Station 302 (Oct/Nov)
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Spring/Summer 2006 Review Filtration is Important!
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Spring/Summer 2006 Review Running a Gauge Pig
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Spring/Summer 2006 Review Storage work continues
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Spring/Summer 2006 Review New HP Installations
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Winter 2006/07 Expectations l Transport Expectations l Expect Amarillo Line to be highly utilized l Expect Cross Haul Line to be highly utilized l Expect Gulf Coast Line to swing with market demand
l Expect Louisiana Line to be highly utilized l LNG Influence? l Expect Trailblazer system to be highly utilized
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Winter 2006/07 Expectations l Storage Expectations l Price influence l Market volatility continuing
l Weather influence l No consensus on weather patterns
l Reduced weekend/holiday demand
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Summer 2007 First Look l Major Projects Planned
l HP expansion 346, 342, 343 and 302 l KMIP project work l Replace HP at Station 310 l Replace HP at Station 196 l Replace HP at Loudon storage l Replace HP at Herscher storage l Champaign lateral expansion project work l Amarillo interconnect with NNG in Iowa
l Integrity Projects Planned l GC from Station 311 to Station 113 l Amarillo project from Station 110 to Station 113 l Amarillo project from Station 196 Station 107 l Louisiana project from Station 302 to Station 343 l Chicago area project on Volo system l Chicago area project on Cal #2 system
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Summer 2007 First Look
2004 2005 2006 2007
Compression / HP Major Investment
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Summer 2007 First Look Natural Apr 07, 1 month, Reroute GC #1, #2, & #3 lines crossing US 59 in, Marion County Texas Apr 07, 1 day, Cleaning pig runs, La Line #1, Station 343 to Station 342 Apr 07, 1 day, Station 155 annual ESD test and electrical circuit maintenance Apr 07, 1 day, Cleaning pig runs La Line #2, Station 343 to Station 342 Apr 07, 1 day, Station 112 annual ESD test and electrical circuit maintenance May 07, 1 day, Station 346 annual ESD test and electrical circuit maintenance May 07, 2 day, Station 343 annual ESD test and electrical circuit maintenance
Trailblazer Feb 06, 2 day, Cleaning pig runs from Rockport to Station 601 Mar 07, 2 day, Station 601 annual ESD test and electrical circuit maintenance unit #1 Mar 07, 2 day, Electrical circuit maintenance unit #2 Apr 07, 5 day, Change out turbine package on unit #2
Horizon No work scheduled at this time
Canyon Creek Compression No work scheduled at this time
As posted on KM EBB 09/06/06
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Gas Quality Topics l Natural RP01503 l 05 hearing to establish “safe harbor” dew point l Favorable decision by Administrative Law Judge l FERC has not acted on Natural’s tariff language
l Natural’s objectives have not changed l Gas Quality acceptable for safe and reliable operation l Gas Quality acceptable to downstream end use markets
l Industry Progress l NGC white papers’ acceptance l Working with downstream LDCs on Tariff specs l NAESB progress
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NGPL 2006 Contact List Gas Control 24 hr 7133699400 Emer 8007332490 Pager 8887922669
Trennis Curry 7133699378 Cell 7138194577
John Heath 7133699348 Cell 7138236927
Danny Ivy 7133699311 Cell 7138292761
Ray Miller 7133699330 Cell 7132068338
Trans and Stor Services Paul Haas 7133693243 Cell 7138290462
Gene Nowak 7133699329 Cell 7132529759
Rick Clark 7133699340 Cell 7139076413
TASS Hotline 24 hr 7133699683
Dart Help Line 24 hr 8002583278
Account Services Dave Weeks 6306913616 Cell 6303991193
Donette Bisett 7133699316 Cell 7137246445
Mark Kissel 6306913641 Cell 6302691663
Field Operations Joe Mclaughlin N. Region 6306913802 Cell 6302693006
Bob Montgomery W. Region 8063792041 Ext 225 Cell 8066790320
Dennis Wamsley S. Region 7133699502 Ext: 220 Cell 7132067889
Dee Bennett – Chicago Area 8157251405 Pager 8883726198 Cell 8156930517
Dwayne Burton 7133699356 Cell 2814142137
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Supply and Market Growth Mark Kissel
VP Business Management
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New Supply Mid2006 vs. 2003
Natural Gas Pipeline Company of America
NGPL Gas Storage
North Lansing
Sayre
Loudon Cooks Mills
Herscher Columbus
City
Keota
Arkansas
Texas
New Mexico
Oklahoma
Kansas Missouri
Illinois
Iowa
Nebraska
Louisiana
Natural Gas Pipeline Company of America
NGPL Gas Storage
Natural Gas Pipeline Company of America
NGPL Gas Storage
North Lansing
Sayre
Loudon Cooks Mills
Herscher Columbus
City
Keota
Arkansas
Texas
New Mexico
Oklahoma
Kansas Missouri
Illinois
Iowa
Nebraska
Louisiana
North Lansing
Sayre
Loudon Cooks Mills
Herscher Columbus
City
Keota
North Lansing
Sayre
Loudon Cooks Mills
Herscher Columbus
City
Keota
Arkansas
Texas
New Mexico
Oklahoma
Kansas Missouri
Illinois
Iowa
Nebraska
Louisiana
Arkansas
Texas
New Mexico
Oklahoma
Kansas Missouri
Illinois
Iowa
Nebraska
Louisiana
Midcontinent Zone Increase Receipt Capacity: 1,669 MMcf/d Avg. Daily Receipts: 389 MMcf/d
Texok Zone Increase Receipt Capacity: 2,560 MMcf/d Avg. Daily Receipts: 459 MMcf/d
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Market Growth
Ethanol Plants
Number of Annual Usage State Probable Plants (Bcf)
Nebraska 6 19.0 Iowa 2 4.7 Illinois 6 14.7
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Direct Connect Power Plant Throughput
Delivery Zone 2004 (Bcf)
2004 CDDs
2005 (Bcf)
2005 CDDs
2006 (Bcf) (YTD)
2006 CDDs (YTD)
Normal CDDs
Market 2.3 615 12.1 1,166 9.5 880 830 Midcontinent 6.3 2,653 13.6 3,120 8.9 2,788 2,568
Texok 83.0 3,297 72.2 3,292 56.8 2,489 2,893 TOTAL 91.5 6,565 97.9 7,578 75.2 6,157 6,291
Cooling Degree Days based on Chicago for the Market Zone, Dallas for the Midcontinent Zone and Houston for the Texok Zone
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Increased Utilization of System
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
2002 2003 2004 2005
Average Daily Throughput (Dth/d)
Amarillo Sys.@ Sta. 109 (upstream of Harper, IA) La Line Deliv in Seg. 23 & 24
Gulf Coast Sys. @ Sta. 307
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Increase usage of Gulf Coast System during peak periods
Gulf Coast Utilization on days during December with 42 HDD’s at Chicago O’Hare.
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
2002 2003 2004 2005
Average Daily Throughput (Dth/d)
Gulf Coast System @ Sta. 307
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MIDCONTINE
NT
PERM
IAN
TEXO
K
SOUTH T
EXAS
LOUISIANA
AMARILLO
IOWAILLINO
IS
GULF CO
AST
TEXOK
13
26
25
22
20
21
18
25
23 24
17
16
6 5 2
1
9
7
4
3
11
10
12
14
29
27
28
27
8
Trailblazer
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Available Capacity Commencing September 2006
(As posted on NGPL Segment Capacity Grid, 9/14/06)
Amarillo System (Seg 14)
Sold Out
Amarillo System (Segment 11 – 13)
Long Term starting Apr 07 – 27,407 Dth/d
Permian System (Segment 7) Long Term starting
Sept 06 – 124,475 Dth/d
Seg 9 Backhaul Capacity Long Term starting
Sept 06 – 103,000 Dth/d Sept 06 Only – 121,000 Dth/d
Oct 06 – 221,000 Dth/d April thru Oct 2007 – 103,000 Dth/d April thru Oct 2008 – 143,000 Dth/d
Crosshaul Seg 15 (from seg 6,5,2)
Sold Out
South Texas (seg 18) Long Term starting Sept 06 – 3,840 Dth/d
South Texas (seg 20 & 22) Long Term starting Sept 06 43,962 Dth/d
Gulf Coast System
Seg 27 – 28
Long Term – Sold Out
Sept 06 Only – 162,052 Dth/d
Oct 06 Only – 112,442 Dth/d
March 07 Only – 70,000 Dth/d
TexOk/Arkoma – Segments 16 & 17
Sold Out
Louisiana Leg (Segments 25, 23, & 24) Sold Out
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Panel Discussion Storage Development
Ron Brown, KMI Pat De Ville, Enstor
Paul Korman, Van Ness Feldman Bill McCartney, Vitol S.A., Inc.
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Business Development
Steve Harris
VP Business Development
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Topics of Discussion l Committed Projects l Kinder Morgan Rockies Express Pipeline l Kinder Morgan Louisiana Pipeline l NGPL LA Line Expansion l NGPL Segment 17 Expansion
l Proposed Projects l KM Midcontinent Express Project l KM Fayetteville Pipeline Project l KM Carthage Project
l Ethanol Projects l Supply Additions l 2005 Interconnects l 2006 Interconnects
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Rockies Express Pipeline Project Staging
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Rockies Express Project Overview l Rockies Express (REX): 1.8 Bcf/d l REX Zone 1 (formerly Entrega) l 130 miles of 36” pipeline from Meeker, Co to Wamsutter, WY
l 190 miles of 42” pipeline from Wamsutter to Cheyenne Hub
l REX Zones 2 and 3 l 1,350 miles of 42” pipeline from Cheyenne Hub to Clarington, OH
l Overthrust Capacity Lease l 625,000 Dth/d of capacity from Opal, WY to Wamsutter l Installation of approx. 70 miles of 36” pipeline from Kanda, WY to Wamsutter
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REX Shippers
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Kinder Morgan Louisiana Pipeline
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Texas Louisiana
CGT Delivery Point
FGT Delivery Point
ANR Delivery Point
NGPL Delivery Point
Sabine Pass LNG Terminal Leg 1 Receipt Point Leg 2 Receipt Point
TETCO Delivery Point
Sabine Delivery Point
Transco Delivery Point
ANR Delivery Point
Trunkline Delivery Point
Tennessee Delivery Point
Bridgeline Delivery Point
Southwest Loop Delivery Point
Texas Gas Delivery Point
Southwest Loop Johnson's Bayou Delivery Point Cameron
Vermilion
Calcasieu
Acadia
Allen Beauregard
Orange
Jasper
St. Landry
Jefferson Davis
Newton
Jefferson
Lafayette
Evangeline
Iberia
St. Martin
Tyler
West Cameron East Cameron
Lafayette
Lake Charles
Port Arthur
Eunice
Sulphur
Nederland
Crowley
Orange
De Quincy
Opelousas
Jennings Welsh
Rayne
Vidor
Abbeville Kaplan
Westlake
Church Point
Vinton
Groves
Mamou
Kinder
Lake Arthur
Breaux Bridge
Gueydan
Carencro
Kirbyville
Arnaudville
Port Barre
Henry Hub
Proposed KM Louisiana Pipeline Leased Capacity on NGPL Proposed Interconnects Natural Gas Pipeline Company of America Fish and Wildlife Service National Park Service
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Kinder Morgan Louisiana Pipeline l Capital Cost $490 MM l Receipt Point: Cheniere Sabine Pass LNG Terminal l Delivery Point: Various inter/intrastate pipelines and ending in Evangeline
Parish, LA. l Capacity
l Rayne Lateral (Leg 1) l 137 miles 42” l 2,130,000 Dth/d
l NGPL Lateral (Leg 2) l 1 mile 36” l 1,597,500 Dth/d l Includes 200,000 Dth/d of lease capacity on NGPL to Johnson’s
Bayou Southwest Loop area l Tiein Facilities between Rayne and NGPL Laterals, 1,065,000 Dth/d
Sabine Pass Facility
NGPL Lateral 1, 597,500 Dth/d Rayne Lateral
2,130,000 Dth/d
55
Kinder Morgan Louisiana Pipeline Procedural Timeline
September 2006: File FERC Application
June 2007: Receive FERC Certificate
July 2008: Begin Construction
October 1, 2008: Inservice for NGPL Lateral (Leg 2)
April 1, 2009: Inservice for Rayne Lateral (Leg 1 available for service as early as September 2008)
56
20
0,000 Dth/d Expansion
304
302 343
342 346
304
302
343 342 346
340
303
Install Piping for Bidirectional Compression
Upgrade & add HP
Replace HP
Upgrade & add HP
Upgrade & add HP
Add 3.14 mile Loop
Henry
Henry
NGPL Louisiana Line Expansion
57
NGPL Louisiana Line Expansion
§ Capacity is 200,000 Dth/d and is fully subscribed § Contract path was sourced from the north end of the Gulf Coast Line
§ Binding Open Season was for 3 weeks ending May 2, 2006
§ Estimated Inservice is January 1, 2008 § Capital Cost estimate is $68.7 MM
58
" )
" )
" )
" )
" )
" )
" )
NGPL Segment 17 Expansion Project
Enogex Bryan
Sta. 801
New Compressor Sta. 803
Segment 17 Expansion
Sta. 802 Capital Cost: $15.5 MM
Capacity: 140 MMcf/d (fully subscribed)
HP: 9,500 (new Sta. 803)
Term of Contracts: 10 years
InService: November 2006
59
+ U
+ U
+ U
+ U
+ U + U
+ U + U
+ U
+ U + U
+ U
CROSSTEX
CROSSTEX
NGPL
ENOGEX
TGT
ANR NGPL
SONAT
GULF SOUTH TGP
COLUMBIA GULF
TETCO
TRUNKLINE
Fort Worth Dallas
Waco
Shreveport Monroe
Denton
Tyler
Sherman
Longview
Alexandria
Pine Bluff
Texarkana
KM Midcontinent Express Pipeline
306
305
812 801
155
802
North Lansing 388
304
Carthage
Perryville
Oklahoma
Texas
Louisiana
Arkansas
Proposed Midcontinent Express Pipeline Proposed MCEX Receipt Proposed MCEX Delivery NGPL NGPL Storage NGPL Compressor Station Barnett Shale Hub
60
KM Midcontinent Express Project Specifics
l Capacity: 1.1 Bcf/d l Route: Sherman (Barnett Shale) to Bennington area
through Perryville to CGT l 343 Miles l 39 miles of 36” pipe l 304 miles of 42” pipe
l Contract Term: 10 years l Inservice Date: MarchAugust 2009 l 3 Receipt Points l 9 Delivery Points
61
KM Midcontinent Express Pipeline Project Timeline
October 227, 2006: Conduct Open Season for capacity
February 2007: NEPA PreFiling Application
September 2007: File FERC Application
July 2008: Receive FERC Certificate
August 2008: Begin Construction
January 2009: Inservice 802 to NGPL Atlanta
MarchAugust 2009: Inservice for remaining capacity
62
KM Fayetteville Pipeline
!
!
!
!
! !
!
!
!
!
Arkansas Mississippi
Tennessee
Memphis
Little Rock
Jackson
White
Lee
Panola
Tate Monroe
Lafayette
Tunica
Calhoun
Conway
Van Buren
Woodruff
Cleburne
St. Francis
CGT
TGP
ANR
MRT
SWEC
TGP
TGT
NGPL
TETCO
TRUNKLINE
Opt 2: Basin to Texas Gas
Opt 3: Basin to Columbia Gulf
307
306
Opt 1: Basin to NGPL
Proposed Fayetteville Pipeline Proposed Interconnect NGPL NGPL Compressor Station Fayetteville Shale Area
63
KM Fayetteville Pipeline
l Three construction options l 65 miles of 24” or 30” l 147 Miles of 24” or 30” l 212 miles of 24” or 30”
l Capacity of 500 MMcf/d to 900 MMcf/d l Anticipated In Service of 1/1/09
64
KM Carthage Project
DELIVERY Centerpoint Gulf South
Henderson
Panola
Lakeport
Tatum
Beckville
Easton
Panola
Rusk
Harrison
Caddo
Gregg
De Soto
Carthage Hub
Proposed Carthage Pipeline NGPL NGPL Compressor Station
304
Texas Louisiana
• Two capacity options 200 MMcf/d or 300 MMcf/d
• 13 Miles of 20” Pipe • 3,500 HP to 6,000 HP of Compression • Proposed Contract Term of 5 Years
65
§ With the passage of the Energy Policy Act of 2005 and enactment of the nationwide Renewable Fuels Standard (RFS), USA production of ethanol is mandated to meet 7,500 million gallons per year by 2012.
§ USA Production (MGPY): § Total US Current Capacity at 101 ethanol biorefineries 4,829.9 § Total US Under Construction (42)/Expansions (7) 2,880.5 § Total USA Capacity 7,710.4
Ethanol Plants
Source: www.ethanolrfa.org
66
Ethanol Plants
67
Ethanol Plants
Potential NGPL & Trailblazer Ethanol Plants Potential NGPL & Trailblazer Ethanol Plants Million Gls. Million Gls.
Location Pipeline Per Year MDth/d Location Pipeline Per Year MDth/d
1 Adams, NE Trailblazer 100 10.0 18 Hastings, NE Trailblazer 80 8.0 2 Annawan, IL NGPL 50 5.0 19 Henry Co, IL NGPL 50 5.0 3 Carleton, NE Trailblazer 50 5.0 20 Holdrege, NE Trailblazer 80 8.0 4 Centralia, IL NGPL 50 5.0 21 Kearney, NE Trailblazer 40 6.0 5 Champaign, IL NGPL 110 11.0 22 Madrid, NE Trailblazer 45 4.5 6 Corning, IA NGPL 60 6.0 23 Montgomery IA NGPL 50 4.5 7 Creston, IA NGPL 72 7.2 24 Osceola, IA NGPL 50 4.3 8 DeWeese, NE Trailblazer 100 12.5 25 Port Will County NGPL 100 10.0 9 DeWitt, NE Trailblazer 80 8.0 26 Princeton, IL NGPL 100 10.0 10 Elwood, NE Trailblazer 100 12.0 27 Putnam Co. IL NGPL 50 5.0 11 Endicott, NE Trailblazer 80 8.0 28 Rochelle, IL NGPL 50 5.0 12 Fairmont, NE Trailblazer 100 10.0 29 Salem, IL NGPL 50 5.0 13 Fillmore Co, NE Trailblazer 50 5.0 30 Shenandoah, IA NGPL 80 7.0 14 Ford Co., IL NGPL 100 10.0 31 Shickley, NE Trailblazer 100 10.0 15 Galva, IL NGPL 100 10.0 32 Thayer County, NE Trailblazer 100 10.0 16 Gibson City, IL NGPL 40 4.2 33 Wahoo, NE NGPL 30 3.0 17 Grand Island, NE Trailblazer 80 8.0 34 Wilroads, KS NGPL 50 5.0
Total 2,427 247.2
68
NGPL 2005 Interconnects
Executed Agreements Capacity
Company Co/State Pipe R/D MMcf/d Cimarex Kiowa, Ok NGPL Receipt 3 Copano/Live Oak Duval, TX NGPL Receipt 9 Crosstex (North TX PL) Lamar, TX NGPL Receipt 250 Dynegy Saunders Lea, NM NGPL Receipt 50 Enbridge Wheeler, TX NGPL Receipt 200 Enbridge Wheeler, TX NGPL Receipt 50 Enterprise Eddy, NM NGPL Receipt 92 Houston Pipeline Angelina, TX NGPL Receipt 200 KMNTP Lamar, TX NGPL Receipt 150 Marathon Caddo, OK NGPL Receipt 10 North Fork Gathering Beckham, OK NGPL Receipt 25 Panda Hereford Deaf Smith, TX NGPL Deliver 11 Sanguine Caddo, OK NGPL Receipt 20 Semkan Edwards, KS NGPL Rec/Del 8 Superior Latimer, OK NGPL Receipt 100 Transwest (Del to Rec) Eddy, NM NGPL Receipt 128
Total 1,306
69
NGPL 2006 Interconnects
Executed Agreements Capacity
Company Co/State Pipe R/D MMcf/d Agave Eddy, NM NGPL Receipt 40 Agave Eddy, NM NGPL Receipt 40 ETC – Atlas Pipeline Beckham, Ok NGPL Receipt 140 Enbridge Panola, TX NGPL Receipt 500 Enbridge Wheeler, TX NGPL Receipt 100 Famcor Oil, Inc San Jacinto, TX NGPL Receipt 1 GMT Exploration Rusk, TX NGPL Receipt 20 Houston Pipeline Panola, TX NGPL Receipt 664 Superior Beckham, OK NGPL Receipt 10 TexCom Operating, LLC Victoria, TX NGPL Receipt 2 Transwestern Eddy, NM NGPL Receipt 128 BP America Washita, OK NGPL Receipt 45 Craton Energy Panola, TX NGPL Receipt 22 Chesapeake Washita, TX NGPL Receipt 3 Millennium Energy Nacogdoches, TX NGPL Receipt 15 Marathon Oil Washita, OK NGPL Receipt 25 Sauguine Energy Grady, OK NGPL Receipt 5
Total 1, 760
70
Attendees Alliant Energy
Jeff Hicken
Ameren James Massmann
Ameren AEGC Bradley Kloeppel Kathy Reeves
Anadarko Tracie Steele
Aquila Networks Dave Francis
BP Canada Energy Marketing Corp. Tracy Schwartzkopf Bill Griffith
BP Energy Company Reyna Cabrera
Cargill Matt Millard
CenterPoint Energy Gas Services John Hoehn
CenterPoint Energy Minnesota Gas Anne Wilson
Chevron Natural Gas Tiffany Smith
Cincinnati Gas and Electric Uma Nanjundan
Conoco Phillips Bob Culler
Constellation Energy Commodities Group
Darren Espey Andrew Swinick
Coral Energy Resources Nick Sherell
Dominion Retail, Inc. Peggy Ghannam
Eagle Energy Partners Tom Wolf
Enstor Patrick De Ville
Grain Processing Corp. Leona Fortenbacher
Kansas Energy Partners Mark Gurley Derek McKenzie
Kinder Morgan Annette Anderson Carol Bae Dee Bennett Ron Brown Dwayne Burton Andy Edling David Devine David Anderson Donette Bisett Dayna Burnett Steve Harris
Kinder Morgan (cont’d) Sam Hosper Danny Ivy Steve Kean Mark Kissel Jim McElligott Joe McLaughlin Menis Mark Ray Miller Tom Mikucki Bruce Newsome Paul Robey Frank Strong David Weeks Lonnie West
Louis Dreyfus Paul Garner
Masefield America Kevin Coyle
MidAmerican Energy Tom Gesell
National Fuel Marketing Courtney Mathews George Roesch
Nexen Marketing USA Tanya Kingwell
Nicor Enerchange Steve Cittadine John Nowak Mark Rueff
71
Attendees Nicor Gas
Clint Whybark Len Gilmore Gary Bartlett Maureen Williams Michelle Carbone Joe Deters Shirley Holmes Kathy Hopkins David Hughes
NIPSCO Steve Auld Cecelia Largura
Niska Gas Storage LLC Karen Politsky Sheri Horniachek
Occidental Energy Marketing, Inc. Jason Novosad Gene Krupinski
OGE Resources Tracy Holmes
Oneok Energy Services Co. L.P. John Minger Jill Roberson Chuck Kelley
Peoples Energy Wholesale Marketing Todd Duffield Steve Richman
Peoples Gas Light & Coke Rich Dobson Bill Quigley Tom Smith Tom Zack
PPM Energy Zarin Imam
Reliant Energy Yvy Hales
Sempra Energy Trading Corp. Scott Walton
Sequent Energy Mgmt. Chris Holeman
Shell Trading Kurt McKnight
Suez Energy Marketing Jason Evans
Tenaska Marketing Ventures Troy Davis Lori Bruck Scott Hibbard
University of Illinois Lyle Wachtel
Van Ness Feldman Paul Korman
Virginia Power Energy Marketing Tom Dickey Mark Moyer
Vitol S.A., Inc. Bill McCartney
We Energies Tim McCollow Peter Newman Richard Quick Jim Voss Bob Whitefoot
Williams Energy Gary Booker
WPS Energy Services Mike Bottger Steve Vesely