Supplier Engagement October 4, 2018

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1 Supplier Engagement October 4, 2018

2 TransCanada Company Overview One of North America s Largest Natural Gas Pipeline Networks 91,500 km (56,900 mi) of pipeline 23 bcf/d; ~25% of continental demand Premier Liquids Pipeline System 4,300 km (2,700 mi) of pipeline 545,000 bbl/d; ~20% of Western Canadian exports One of the Largest Private Sector Power Generators in Canada 12 power plants, 6,200 MW Total Assets ~$89 billion Enterprise Value ~$100 billion Total Investments of ~$70 Billion since 2000

3 Keystone XL Project Overview 36 inch pipeline to take crude oil from Hardisty, AB to Steele City, Nebraska Capacity to ship 830,000 barrels daily 1,939 km of new pipeline 529 km in Canada (Approx. 260 km in SK) 1,410 km in USA 33 pump stations 8 in Canada (3 in SK: Fox Valley, Piapot, Grassy Creek) 25 in USA

4 Current state of KXL Re-engaging on the project Project has received all major permits in Canada and the US National Energy Board Approval in March 2010 Presidential permit in January 2017 Nebraska Public Services Commission approval of mainline alternate route in November 2017 Construction preparation activities occurring in 2018 Municipal land permits/agreements Environmental work/surveys Anticipated construction in 2019/2020 and in service in 2021 Project keeping a close eye on regulatory challenges in the US Working to secure Prime contractors and local suppliers Extensive pipe refurbishment program starting in July 2018

5 Economic Benefits of Development Commitment TransCanada is committed to bringing economic value to our communities by: Generating tax revenues for federal, provincial and state governments Providing financial and non-financial support to non-profit organizations in our communities Engaging with a broad range of qualified suppliers Working to enhance the diversity and local participation of suppliers to realize greater economic benefits for local communities in association with our projects Recognized Competitive Advantage Bloomberg Equality Index Top 100 (Sector Neutral) RobecoSAM Sustainability Leader in The 2018 Sustainability Yearbook

6 Contract Strategy TransCanada is committed to Supplier Diversity and Local Participation including Aboriginal suppliers For Major Projects TransCanada Develops a Supplier Engagement Strategy to work with regional suppliers and key stakeholders (e.g. Ministries, Supplier Associations, Chambers of Commerce) to gain support for the project and prepare provincial supplier listings Evaluate regional, scope-based contracts to get the best mix of regional contribution, size / scope of contracts, and project management effort for the Project Types of contracts could include EPC, traditional design-bid-build, or other variations

7 Indigenous Relations Numbers are still being calculated by a Benefits that will be realized: GDP Property taxes to RM Jobs Diversity and Local Spend

8 Registering to Work at TransCanada How to access Vendor Portal for Registration: Contractor, Supplier and Vendor Registration Form By completing the Registration Form, your company s information will be retained and referenced for upcoming work. TransCanada requires that certain goods and services be qualified before contracts are put in place to ensure the safety and quality of the work being performed or goods being obtained. By completing this form you will also be subscribed to our Contractor, Supplier and Vendor Communications List. Please also visit this page for more information:

9 Supplier Qualification A General Qualification is a true assessment of a supplier s ability to complete work for TransCanada A General Qualification is based on the following criteria: Certifications Management Systems (safety and quality processes and procedures) Organizational Experience (not individual) Technical Capability (equipment and specific technologies) Financial Assessment A scope based evaluation may also be required

10 Typical Services - Construction Fabrication Work Structural Piping Spools Land Survey Environmental Geo-tech Brushing/ Snow Removal Rig Mats Supply Construction Equipment Rental Concrete and Aggregate Supplies Engineering (as sub-contract for local component) Mechanical, Electrical, Civil work (as sub-contractor) Sand Padding Emergency material requirements Construction Consumables/ Office Supplies Fencing/Temporary Lighting Short Term Office Support Field/Construction Labor Fuel Supply Hotel Accommodations Camp Potable Water/Sewage Removal Testing of Concrete, Soil, etc. Trailer Rental Security Services

11 Typical Services - Operations Picker & Crane Operators Vacuum Truck Operators Technical Trades General Labourers Vegetation Control Snow Plowing Brush Control Hydrovac Operators Back hoe Operators Aerial Patrol Aircraft with pilots Pigging crews Welders NDE inspection crews Rig mat crews Geotechnical Boat Operators Environmental Consultants Security Others

12 Supplier Diversity Additional Components Stakeholder Education and Training Strategy SCM Supplier Development Strategy Joint Venture and Partnership Strategy Tracking, Trending and Communicating

13 Thank you Project contact: BJ Arnold Manager, Public Affairs, Central Canada (204) Andrea Korney Sr Manager, Supplier Diversity and KXL Stakeholder Relations (403)