Dominion Energy Questar Pipeline, LLC 2018 Customer Meeting. February 27, 2018

Transcription

1 Dominion Energy Questar Pipeline, LLC 2018 Customer Meeting 1

2 Shelley Kendrick Director Marketing and Business Development Dominion Energy Questar Pipeline 2

3 Ron Jorgensen Vice President Western Pipeline Operations Dominion Energy Questar Pipeline 3

4 Core Values Safety Ethics Excellence One Dominion Energy 4 4

5 Recent Accomplishments Safety Ethics Excellence Teamwork Dominion Energy Questar Pipeline Completed best safety year on record for injuries with no lost days, and OSHA recordable rate of 0.87 for 2017 Completed 218 miles of instrumented in-line inspection Completed 30 storage well-workovers and tubing inspections Favorable results with all regulatory audits and safety inspections Participating in Dominion Energy environmental stewardship programs ~100% of colleagues participated in Diversity & Inclusion program Strong customer service continued improvement on 2017 Mastio survey Completed DEQP tariff modernization Clay Basin Delivery Project 1.1 Bcf FSS Joint development of new PHMSA storage integrity management plans Successful completion of merger related integration 5

6 DEQP Organization Don Raikes Senior Vice President Dominion Midstream Operations Anne Bomar Senior Vice President Pipeline Services & Optimization Mark Stevens Director, Federal Regulatory Accounting Ronald Jorgensen Vice President Western Pipeline Operations Brad Burton Director, Federal Regulatory Affairs Albert Bertagnolli Director, Transmission Operations Lori Creer Director, Engineering & Gas Control Shelley W Kendrick Director,Marketing & Business Development + QES 6

7 2018 Priorities Dominion Energy Questar Pipeline Safety Employee and contractor safety excellence (goal of zero accidents) Robust set of pipeline and storage integrity management activities Ethics Excellent environmental stewardship and regulatory compliance Excellence Teamwork Enhanced customer service continuous improvement High operational reliability Clay Basin Delivery Project 1.1 Bcf FSS Strengthen relationships and dialogue with customers Ideas for new or enhanced services 7

8 Questions? 8

9 Anne Bomar Senior Vice President Pipeline Services & Optimization Dominion Energy Artwork by Addison Jefferies (age 5) 9

10 Dominion Energy Overview Dominion Energy Company Overview Who We Are Gas Infrastructure Group Major Gas Infrastructure Projects Dominion Energy Questar Pipeline 13

11 Dominion Energy One of the nation s largest producers and transporters of energy. 26,200 MW of electric generation (includes ~765 MW of solar generation in-service) 6,600 miles of electric transmission lines 2.6 million electric customers in VA and NC Atlantic Coast Pipeline (in progress) 15,000 miles of natural gas transmission/gathering/storage pipeline 1 trillion cubic feet of natural gas storage operated Dominion Energy Cove Point LNG Facility 2.3 million natural gas customers in 5 states 1.4 million non-regulated retail customers in 17 states 14

12 Dominion Energy Profile Power Delivery Power Generation Gas Infrastructure Electric Transmission 6,600 miles of transmission lines Favorable regulatory environment Electric Distribution 57,600 miles of distribution lines 2.6 million franchise retail customer accounts in VA and NC Utility Generation 21,500 MW of capacity Balanced, diverse fuel mix Favorable regulatory environment Merchant Generation 4,700 MW of capacity, including nuclear, gas and renewable power Active hedging program for energy revenue/margins Gas Transmission Together with Gas Distribution, operates one of the largest natural gas storage systems in the U.S. 15,000 miles of pipeline in 11 states Cove Point LNG import facility Eastern assets in Marcellus and Utica Shale regions Gas Distribution 51,300 miles of distribution pipeline and 2.3 million natural gas customer accounts in five states Dominion Energy Solutions 15

13 Power Delivery Group Electric Distribution 2.6 million franchise customers in NC, VA 385,000+ new connects, ,600 miles of line in VA and NC Strategic Undergrounding program Electric Transmission 6,600 miles of line in NC, VA and WV Best-in-class physical and cyber security investments, replacing infrastructure, serving new load 16

14 Power Delivery Group PJM Interconnection Integrated into PJM in 2005 Provides access to economic energy, to minimize costs for customers PJM Territory* Dominion Zone 17 *Source: February PJM 27, May

15 Power Generation Group Operates Dominion Energy s 26,200 MW generation fleet 21,500 MW regulated utility 4,700 MW merchant Balanced, diverse fuel mix Regulated Utility Generation Division of Dominion Energy Virginia / North Carolina ~679 MW 1 projected peak demand growth over next 10 years Rider projects to support growth Virginia fuel factor reset effective each July 1st Merchant Generation Nuclear, gas and long-term contracted renewables Active hedging program for energy revenue/margins 18 1 Source: 2017 PJM Load Forecast Report (January 2017), represents VEPCO s portion of the PJM DOM Zone

16 Power Generation Fuels Mix 2016 Electric Capacity by Fuel Type for Regulated and Merchant Fleet 1, Electric Production by Fuel Type for Regulated and Merchant Fleet 1,2,3 Renewable 5% Natural Gas 35% Oil 8% Hydro 8% Natural Gas 32% Renewable 3% Oil 1% Hydro 3% Nuclear 20% Coal 17% Non-utility Generation 7% Nuclear 37% Coal 18% Purchased Power, net 6% 19 1 Reflects Dominion Energy s owned percentage; includes Non-utility Generation under contract. 2 Excludes Morgans Corner (20MW) solar facility in NC, which is dedicated to serving a non-jurisdictional customer. 3 Purchased Power, net includes NUG electric production and market purchases net of market sales. IR Reference Book

17 Merchant Generation Portfolio Over 60% of Merchant electric production from carbon-free generation in

18 Dominion Energy Midstream Partners DM is a growth-oriented Delaware master limited partnership (MLP) Formed by Dominion Energy in March 2014 Currently owns: Preferred equity interests in Dominion Energy Cove Point LNG, LP Dominion Energy Carolina Gas Dominion Energy Questar Pipeline, LLC About one-quarter of the Iroquois Pipeline DM also owns Rights of First Offer (ROFO) on: Dominion Energy s remaining interests in Cove Point LNG Dominion Energy s 50% ownership of the Blue Racer Midstream JV Dominion Energy s 48% ownership interest in Atlantic Coast Pipeline 21 IR Reference Book

19 Dominion Energy Midstream Partners Asset Profile Executing the Strategy Stable and predictable cash flows Long-term contracted assets No commodity risk Source of Growth Financial Flexibility No equity issuances needed until mid to late 2018 Dropdown strategy supports 22% annual growth rate Asset Dropdown Strategy* Cove Preferred DECG Iroquois Questar Pipeline Cove Equity ACP / BRM IPO * Dropdowns subject to Dominion Energy and DM Board approval. IR Reference Book

20 Dominion Energy Our Mission Serve our customers safely and reliably Strengthen our communities Minimize environmental impacts Reward our shareholders Live our values 23

21 Dominion Energy Safety Statistics YTD OSHA Incidents OSHA Incidence Rate

22 Dominion Energy Sustainability $3.7 Billion of environmental spending since 2000 Environmental Highlights 43% reductions in carbon emission intensities since Bcf of methane saved through voluntary reduction programs 21% Coal ash beneficially reused 262 Employees participated in environmental projects in 10 states #1 "Best for Vets" Award, Energy Sector, MILITARY TIMES Magazine #2 Most Admired Companies, Utilities Sector, FORTUNE Magazine Social Highlights The Just 100 America s Best Corporate Citizens, FORBES Magazine $26.6 million in charitable giving $12.9 million of low-income fuel assistance 101,000 hours of employee volunteer community service 25

23 Environmental Leadership Our diversified Generation fleet exceeds 2,000 megawatts* of clean energy in 9 states 26 * Dominion Energy s ownership in renewable assets in-service or under development, excluding 687 MW of renewable assets operated through joint ventures., and excluding the Virginia City Hybrid Energy Center. IR Reference Book

24 Strategic Advantages Drive Value for Shareholders ~90% Regulated Operations Diverse Capital Growth Gas / Electric Industry Leading 8%+ Dividend Growth* % EPS CAGR *Annual February dividend 27, 2018 rates subject to Board approval MLP Cash Flow Flexibility Large Step Change Growth Project Execution IR Reference Book

25 Total Dominion Energy Capex $13 - $15 billion Growth Capex Growth Plan ($ billions) $3.2 $48 $4.2 $3.0 - $4.0 $3.0 - $4.0 $61 - $63 Net Plant 1 Net Plant Average annual spend of ~$3.3 - $3.8 billion 2019 & 2020 growth opportunities include: Additional VA and NC solar Environmental compliance Pipeline expansions Questar pipeline and storage Surry / North Anna license extensions Excludes February , DD&A 2018 and Maintenance Capex IR Reference Book

26 Gas Infrastructure Group Dominion Energy is strategically positioned to serve both Eastern U.S. and Western U.S. natural gas markets Dominion Energy gas utility Dominion Energy gas pipeline Cove Point Atlantic Coast Pipeline (subject to regulatory approval) 29 IR Reference Book

27 Gas Distribution - East Dominion Energy Ohio, West Virginia 173 Bcf underground storage Toledo Cleveland 3,100 miles transmission, gathering, storage pipeline 22,100 miles of natural gas distribution pipeline 1.3 million customers Bcf of throughput in 2016 Key Ohio Programs Cincinnati Columbus Service Territory High Pressure Transmission Storage Pipeline Infrastructure Replacement (PIR) program, authorized for $200 million in 2018 House Bill 95, allowing deferral of costs for annual capital expenditure plans, carried at LTD rate Riders: Uncollectible Expense (UEX), Demand Side Management, Automated Meter Reading (AMR) Key West Virginia Programs Pipeline Replacement & Expansion Program (PREP), authorized for approximately $20 million per year. Parkersburg Charleston Morgantown Clarksburg Service Territory Interstate Pipeline 30 IR Reference Book

28 Gas Distribution - West Dominion Energy Utah/Wyoming/Idaho 29,200 miles of mains and service lines Over 1 million gas customers $2.5 billion of assets Key Programs Infrastructure replacement rider, investing approximately $65 million per year Decoupling/CET, weather normalization, gas cost pass through, bad-debt tracker Wexpro - Regulated Gas Supply State-regulated (UT and WY) based on traditional utility cost-of-service principles Supplies >60% of DEUWI annual gas needs Three successful expansions since IR Reference Book

29 Gas Infrastructure Group - Transmission Dominion Energy Transmission 3,900 miles of pipeline in six states 756 Bcf of underground storage Dominion Gathering & Processing 3,300 miles of gathering pipeline 270,000 mcf per day of natural gas processing capacity Dominion Energy Cove Point LNG 1.8 Bcf/d of natural gas send-out 14.6 Bcf equivalent of LNG storage Dominion Energy Carolina Gas Transmission 1,500 miles of transmission pipeline in South Carolina and Georgia Dominion Energy Questar Pipeline 2,200 miles of pipeline 131 Bcf of underground storage Additional Businesses Iroquois Gas Transmission Blue Racer Midstream Dominion Energy Solutions Retail Gas & Products/Services 32 IR Reference Book

30 Dominion Energy Transmission, Inc. Links to major pipelines and markets in the Mid-Atlantic, Northeast and Midwest Key connection to Dominion Energy s Cove Point pipeline Assets 3,901 miles of transmission and storage pipeline Operates 756 Bcf of underground natural gas storage 16 pools located in West Virginia, Pennsylvania and New York Ownership share: 538 Bcf Utica Shale Marcellus Shale DETI Pipeline Storage Cove Point 33 *Dominion Energy Ohio and Dominion Energy Questar Pipeline operate and own 173 Bcf and 131 Bcf of natural gas storage. IR Reference Book

31 Gas Infrastructure Growth - East ~$650 million total project Capex Lordstown Demand Driven Growth Firm transport to serve power generation Estimated investment: $34m Volume: 140,000 dth/d In-service: 3Q 2017 New Market Firm transport from Leidy, PA to serve the NY market Estimated investment: ~$180m Volume: 112,000 dth/d In-service: 4Q 2017 NY Leidy South Firm transport to move Leidy supplies to Mid-Atlantic market Estimated investment: $210m Volume: 155,000 dth/d In-service: 4Q 2017 Sweden Valley Firm transport to move PA production off system Estimated investment: $48m Volume: 120,000 dth/d Expected in-service: 4Q 2019 OH WV PA MD Keys Power Generation Firm transport from Cove Point Pipeline to Keys Energy Center Estimated investment: $37m Volume: 107,000 dth/d In-service: March 2017 Eastern Market Access Firm transport to serve LDC and power generation Estimated investment: $148M Volume: 294,000 dth/d Expected in-service: 3Q IR Reference Book

32 Dominion Energy Cove Point Liquefaction Project Liquefy an average of 0.75 Bcf per day of inlet natural gas Produce 5.25 mtpa of LNG output Fully subscribed capacity 20-year terminal service agreements Joint venture of Sumitomo Corporation and Tokyo Gas US affiliate of GAIL (India) Ltd. EPC Contractor: IHI/Kiewit Cove Point DOE has approved the export of commissioning cargoes Final tuning and testing phase In-Service March IR Reference Book

33 Atlantic Coast Pipeline 600+ miles of primarily 42 pipeline Three gas-fired compressor stations West Virginia, Virginia, North Carolina 1.5 Bcf per day capacity OWNERSHIP STRUCTURE: Dominion Energy* 48% Duke Energy 47% Southern Company 5% >90% subscribed through 20-year contracts, with electric and gas utilities Expandable to >2 Bcf per day Limited notices to proceed issued by FERC in December 2017 Tree felling underway Full construction at key sites Expect completion in 2H 2019 ACP DETI Pipeline Storage Cove Point Utica Shale Marcellus Shale 36 * Dominion Energy will construct, operate and manage the pipeline IR Reference Book

34 DETI Supply Header Project Project creates access to diverse gas supplies for ACP customers Facilities located in Pennsylvania and West Virginia Capacity 1.5 Bcf per day, subscribed through ACP shippers Limited notices to proceed issued by FERC in December Tree felling underway Full construction at key sites Expect completion in 2H 2019 ~$500 million total Capex Supply Header receipt points ACP DETI Pipeline Storage Cove Point Utica Shale Marcellus Shale IR Reference Book

35 Dominion Energy Questar Pipeline Company Overthrust ~2,200 miles of pipeline Rockies-based Pipeline Network Port of Kalama Jordan Cove LNG Ruby Northwest GREEN RIVER BASIN REX 131 Bcf of underground natural gas storage Hub of the Rockies critical interconnectivity among end-use customers, regional gas supplies and major pipelines Kern River Dominion Energy Questar Pipeline UINTA BASIN White River Hub PICEANCE BASIN Colorado Interstate Regional transmission and storage needs, to serve LDC load growth and to meet the long-term potential for coal-to-gas power generation switching 38 = Key interconnect

36 DEQP Looking Ahead We aim to add value: bringing Dominion Energy s experience and resources into partnership with the Questar Pipeline team and our customers. Build on our track record together Safe, Reliable Operations Innovative, Flexible Services Well-Financed Infrastructure Growth Explore best practices and opportunities Customer Processes and Communications Transportation and Storage Service Options Infrastructure Needs 39

37 Thank You. Questions? 40

38 Lori W. Creer Director, Engineering and Gas Control Dominion Energy Questar Pipeline 41

39 Pipeline Maintenance 2018 Maintenance Plan Commitment to Pipeline and Storage Integrity Commitment to Pro-active Reliability Maintenance 42

40 2018 Maintenance Schedule - Possible Shipper Impact Month Category Preliminary Dates Location Project Possible Customer Impact Duration April 3, constant 250 MMcf/d Withdraw rate April Reservoir Test April 3-12 Clay Basin Annual withdrawal test System Integrity April ML 40 (Fidlar to Mesa Tap) Tap retirements and minor pipe replacement April 4, constant 300 MMcf/d Withdraw rate April 5-11, reservoir shut-in No deliveries to Chipeta 5 9 days days Compliance & Maintenance July 19 Oak Spring Annual maintenance and DOT compliance ML 104 capacity reduced to 300 MDth/d 1 day July August System Integrity July 25 JL 46/47 Station Modification August 21 Bull Mountain In line inspection (Smart Pigging) Altamont MAP 145 reduced to 42,000 Dth/d Pleasant Valley MAP 413, Randlett Tap MAP 419, Brundage MAP 144, North Monument Butte MAP 266 all need to be off for 12 hours and nominations reduced by 50%. 1 day Install check valve Bull Mountain MAP 99 no flow for 8 hours 8 hours Oct. 9, constant 175 MMcf/d Injection rate October 43 Reservoir Test October 9-17 Clay Basin Annual injection test Oct. 10, constant 215 MMcf/d Injection rate 9 days Oct , reservoir shut-in Maintenance October 3 Oak Spring Re-cycle valve mods ML 104 capacity reduced to 300 MDth/d 1 day

41 Pipeline Integrity Management 2018 planned In Line Inspection roughly 340 miles ML60 Woodruff to Hyrum Gate 39.2 miles, 20, MFL ML1, 13, 15 Eakin to Cash ML1, 73.3 miles, 18 ML13, 73.3 miles, 18 ML15, 73.8 miles, 20 Caliper/MFL JL44 Gordon Creek to Blue Cut Ditch 31.8 miles, 6, Blue Cut Ditch to Ferron 9.6 miles, 6 Caliper/MFL JL46/47 Altamont to Jct 39.2 miles, 12, Multi Data Set Caliper, AMFL, SMFL Note: 2017 completed In Line Inspection 218 miles 44

42 Storage Integrity Management PHMSA compliant Storage Integrity Management Plan Successful implementation January 18, 2018 Well work overs in planned 2017 Storage Integrity Completed 10 well workovers and 20 tubing inspections 45

43 Pipeline Reliability Maintenance Pro-Active Erosion Mitigation Planned pipeline Completed pipeline and 2 span Compressor Station Overhaul/Exchange Planned 2018 Kastler #5 Oak Spring #1 Completed 2017 Kastler #4 Rock Springs #2 Oak Spring #2 Thistle #1 Blind Canyon #2 Simon 46

44 Questions? 47

45 Joseph Hulse Manager - Marketing Dominion Energy Questar Pipeline Services, Inc. 48

46 Agenda Dominion Energy News Customer Experience Improvements 2018 Mastio Survey Results Customer Tools Opportunities 49

47 Dominion Energy News Follow Dominion Energy & Dominion Energy Utah 50

48 Customer Experience Improvements DEQP is dedicated to providing the highest quality of support & service to its customers Communication: Comprehensive review & analytics of 2017 Mastio survey Notice Templates Upgraded: Clear, efficient and timely communication Improved notice structure readability on web Maintenance Calendar Notices Changes Highlighted Firm contract holders contacted regarding events ICE Chat for Customer Representatives 101 Presentations created on all DEQP websites 51

49 Customer Experience Improvements DEQP is dedicated to providing the highest quality of support & service to its customers Customer Service: Proactive Communication Ongoing Representative Training Interruptible Discounts & Intraday Transport Sales Customer Hotline: (Effective After Hours Support) 52

50 Customer Experience Improvements DEQP is dedicated to providing the highest quality of support & service to its customers Creativity & Innovation: New Services: Firm Peaking Effective September 1, 2017 Tariff Improvements: DEQP Section #5 Acquiring Firm Service Effective December 1, 2017 Park & Loan Program Futures to Futures, Cash to Futures, Cash to Balance of Month Sophisticated model Meet with operations continuously to optimize opportunities New Customer Outreach PipeViewer Upgrade December 2017 rollout, web based, intuitive navigation 53

51 Customer Experience Improvements DEQP Updated Acquiring Firm Service Tariff To Meet Customers Needs In A Dynamic Market Highlights: Section #5 Acquiring Firm Service All posted capacity is first come first served Unless an auction notice is posted Auction Procedures Updated: Parties can update bid until deadline Compete round only triggers for parties tied for the highest economic value Compete round reduced to ½ hour Ability to enter into prearranged deals Defined date for Short Term Amendments 4 th to last business day of each month 54

52 2018 Mastio Survey Results DEQP is dedicated to improved performance Thank you for participating! Rankings released late February 2018 Committed to improving our performance and customer service 55

53 Customer Tools Online Calculator Provides Example of Injection & Withdrawal Quantities Based On Current Conditions 56

54 Customer Tools New PipeViewer is web-based, search enabled and has intuitive navigation Same log-in as QuestLine Save link to home screen on smartphone Old PipeViewer will be taken out of service March 12,

55 Opportunities Available transportation paths to Goshen & Kanda (WIC, CIG, OTPL)

56 Opportunities 2018 Potential Expiring Transportation Contracts OPAL GREEN RIVER BASIN WAMSUTTER 8,000 Rock Springs / Kanda 3,300 GOSHEN 10,000 Fidlar WHITE RIVER HUB DE Questar Pipeline DE Overthrust Pipeline Natural Gas Hub Clay Basin Storage Price 2,263 59

57 Opportunities Available transportation paths to KRGT (Hams Fork, Roberson, Painter) Ruby, & REX

58 Clay Basin Storage Largest Natural Gas Storage Facility in the Rocky Mountains Specifications Natural Gas Storage (BCF) Interconnect Capacity (Dth/d) Location 61 Description 54 Bcf working gas Bcf cushion gas DE Questar Pipeline Injection: 217,000 Withdrawal: 700,000 Northwest Pipeline Injection: 250,000 Withdrawal: 320,000 * Numbers listed are meter sizing, and actual volumes depend on pipeline conditions Daggett County, Utah NE corner of Utah near Wyoming & Colorado borders 50 miles from Rock Springs, WY GOSHEN DE Questar Pipeline Kern River Kern River Pipeline DE Questar Pipeline OPAL DE Questar Pipeline DE Overthrust Kern River CLAY BASIN Ruby CIG Northwest DE Overthrust Pipeline Kern River Pipeline DE Questar Pipeline DE Overthrust Pipeline Proposed Pipeline Natural Gas Market Hub Natural Gas Storage Cryogenic Processing WAMSUTTER DE Questar Pipeline Rockies Express WIC CIG WHITE RIVER HUB DE Questar Pipeline Rockies Express Northwest TransColorado WIC CIG

59 Clay Basin Inventory As of February 22, 2018 Working Gas Inventory is 15.0 MMDTH MM dths APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR Min/Max Range AVG '08-09 '09-10 '10-11 '

60 Opportunities DEQP Park & Loan (PAL1) First-come, first-served interruptible service Based on operational conditions at Clay Basin Futures based approach Fuel: Injected (2%), In-Place Transfer (0.2%) Paid in-cash or in-kind Pre-paid service within five days of invoice, may need to post credit for Loans PAL1 Compressor: 25,000 Dth/d Priority of Service 63

61 Opportunities DEQP Stipulation Gas Sales Parties need a signed NAESB Base Contract with DEQP NAESB applies only to the transaction Bidders must meet credit criteria Winning bidder selected within 10 minutes Must have an ISS, FSS, or PAL account to transfer volumes 64

62 Summary DEQP is focused on continuous improvement to provide better customer service and product offerings Customer opportunities include: Pipeline transportation capacity Storage capacity PAL1 Stipulation Gas Sales 65

63 Questions? Joseph Hulse Manager - Marketing Dominion Energy Questar Pipeline, LLC Joseph.Hulse@Dominionenergy.com 66

64 John Kinder Manager Gas Business Development Dominion Energy Questar Pipeline Services, Inc. 67

65 Agenda Clay Basin Delivery Project More Storage Expansions? Westward Transportation Potential Hams Fork / KRGT Deliveries Liquidity and Interconnections Summary: What s Next? 68

66 Clay Basin Delivery Project Project Overview Converting 1,171,500 Dth of existing interruptible storage to Firm Storage Service with associated MRD OPAL Questar Pipeline Overthrust Kern River Ruby CIG Northwest Overthrust Pipeline WAMSUTTER Questar Pipeline Rockies Express WIC CIG Upgrading two wells to fully functional injection/withdrawal capability Installing two new dehydration units and surface facilities Successful Open Season FERC approval received last week Injections begin in April 2018 CLAY BASIN GOSHEN Questar Pipeline Kern River Questar Pipeline WHITE RIVER HUB Questar Pipeline Rockies Express Northwest TransColorado WIC CIG 69 Kern River Pipeline Kern River Pipeline DE Questar Pipeline DE Overthrust Pipeline Proposed Pipeline Natural Gas Market Hub Natural Gas Storage Cryogenic Processing

67 Additional Storage Expansions? Clay Basin continues to be valued by the market Recent Open Season was very successful Looking for incremental efficiencies and expansions 70

68 Overthrust: Westward Potential Increasing Deliverability from Wamsutter to Hams Fork OPAL Upgrade Measurement at Hams Fork POINT OF ROCKS ROBERSON WAMSUTTER ROCK SPRINGS PAINTER Upgrade Measurement at Wamsutter WHITNEY CANYON Operate two mainlines at separate pressures, with one line at a higher pressure Upgrade Measurement, Yard Modifications Dominion Energy Questar Pipeline Dominion Energy Overthrust Pipeline Compression Facility Date Capacity Available Long Term Capacity (Dth/d) Primary Receipt/Delivery Points End Market Now 200, ,000 Wamsutter Receipt/Various Delivery 200,000 Dth/d Kern River Wamsutter Receipt Hams Fork & Various Delivery 500,000 Dth/d Northwest Pipeline Ruby 71

69 Overthrust: MORE Westward Potential New compression delivers more volume OPAL POINT OF ROCKS Restage Existing Compression, Additional Compression, & Upgrade Measurement ROBERSON ROCK SPRINGS WAMSUTTER PAINTER Restage Existing Compression, Additional Compression WHITNEY CANYON Restage Existing Compression, Additional Compression Dominion Energy Questar Pipeline Dominion Energy Overthrust Pipeline Compression Facility Date Capacity Available Long Term Capacity (Dth/d) Primary Receipt/Delivery Points End Market Future 800,000 Wamsutter Receipt Various Delivery 800,000 Dth/d Kern River Northwest Pipeline Ruby 72

70 Hams Fork / Kern River Upgrade Delivery capacity to Kern River has been sold out in recent winters Open season conducted to upgrade Kern River interconnect at Hams Fork Can efficiently add 120,000 Dth/d of new delivery capacity We re ready when you are 73

71 Liquidity and Interconnections We want to make it easier to trade Clay Basin Considering new interconnects with other pipelines Leverage off-system transportation More liquidity = stronger market 74

72 Summary There s never been a better time to have a good idea! Clay Basin continues to be the jewel of the Rockies Overthrust is your link to the west 75

73 Questions? John Kinder Manager Gas Business Development Dominion Energy Questar Pipeline, LLC

74 Dominion Energy Questar Pipeline, LLC 2018 Customer Meeting 77