Doug Bloom, President, Spectra Energy Transmission West September 8, 2011

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1 Fort Nelson Gas Plant, British Columbia 2011 BC Oil and Gas Conference: An Update From Spectra Energy Doug Bloom, President, Spectra Energy Transmission West September 8, 2011

2 Spectra Energy s Strategic Focus North America s premier natural gas infrastructure company Safe & reliable operations Focusing on project execution and operational excellence Customer responsiveness Connecting premier assets with premier markets Profitability & financial flexibility Realizing strong returns and dividend growth potential Achieving long term value creation for our shareholders BC Oil and Gas Conference 2

3 Our Diverse Portfolio of Assets 2010 Pipeline Throughput: 4.1 Tcf Transmission Pipe: 19,100 mi Gathering Pipe: 63,800 mi Distribution Pipe: 40,600 mi Storage Capacity: 305 Bcf Retail Customers: 1.3 million Gas storage facility Gas processing plant Propane terminal NGL Storage Shale gas formations BC Oil and Gas Conference 3

4 Leading Natural Gas Delivery Company Best Situated Natural Gas Infrastructure in North America Significant Investment in Infrastructure Growth Opportunities Today and Beyond Strong Commitment to Safety and Reliability Experienced Team with Proven Track Record of Responsibility Serving four of five fastest growing natural gas demand markets Access to large shale plays, conventional and LNG ~$26 billion in total assets ~$5.9 billion (since 2007) invested to build and maintain key infrastructure 47 expansion projects (since 2007); created ~20,000 direct construction/ engineering/support jobs Project opportunities of ~$1 billion/year through 2015 Half of total Capital Expenditures 2011 in Canada ~$1.5 billion BC Expansion Program ( ), more in development ~$600 million invested annually on inspection and maintenance of existing facilities $ M/year in Canada 99%+ system reliability; Zero Incidents Safety Culture Listed on Dow Jones World Sustainability Index; top energy firm on Carbon Disclosure Project Index Ranked 18th on Corporate Responsibility Magazine's "100 Best Corporate Citizens List" for 2011 American Gas Association s Outstanding Employee Safety Award (2011) Named to Human Rights Campaign Corporate Equality Index One of largest and most cost-effective CCS project proposals in the world (Fort Nelson, BC) BC Oil and Gas Conference 4

5 Spectra Energy s Western Canada Operations Well Positioned Assets for Basin Growth BC Field Services Number of process plants: 5 Booster stations: 17 Raw gas gathering infrastructure: 2,500 kilometers / 1,550 miles Processing capacity: 2.1 Bcf/d Acid gas injection: 42 MMscf/d Sulphur capacity: 3,000 tonnes/day Major markets: BC, AB BC Pipeline Length of pipeline: 2,800 kilometers / 1,700 miles Transportation capacity: 2.4 Bcf/d Compression horsepower: 600,000 (18 compressor stations) Major markets: BC, AB, US Pacific Northwest Midstream Number of process facilities: 11 Raw gas gathering infrastructure: 990 kilometers / 620 miles Processing capacity: 762 MMcf/d Acid gas injection: 17 MMscf/d Major markets: BC, AB Natural Gas Liquids Empress System Processing capacity: 2.4 Bcf/d natural gas; 63,000 bbls/day C 2 + NGL fractionation capacity: 63,000 bbls/d NGL storage capacity: 4.0 MM bbls PTC Pipeline: 950 km / 590 miles NGL pipeline Major markets: Western Canada, Northern US BC Oil and Gas Conference 5

6 Fort Nelson Gas Plant, British Columbia Supplier of Choice: Growing the Business and Staying Nimble in a Rapidly Changing Supply/Demand Environment

7 Portfolio of Expansion Underpinned by Firm Contracts Executing on Our Growth Plan Fort Nelson (Horn River) $1 billion capital investment underway Fort Nelson plant fully contracted 9 of 10 expansion projects now in service New Fort Nelson North Processing Facility (2012 in-service) T-North pipeline expansions underway Further expansions expected post-2012 Fort St. John (Montney) $500 million capital investment underway McMahon plant at full capacity, Bissette Pipeline now in service New Dawson plant (2 phases, 2011/13) Further expansions in development BC Oil and Gas Conference 7

8 Fort Nelson Area Capital Expansion Projects in Execution ( ) 2012) BC Oil and Gas Conference 8

9 Fort Nelson and Beyond Further expansion opportunities beyond 2012 expected as area shale gas development progresses More gathering, processing and pipeline capacity required: Horn River Basin development Emerging Cordova Embayment and Liard plays LNG export potential Proposed new Fort Nelson shale gas processing facilities Assessing the feasibility of expanding the Fort Nelson Gas Plant, and constructing a new gas processing facility near the existing plant Preliminary field studies underway Evaluating further expansion of the gathering system, following existing right-of-way Feasibility assessments, environmental/socio-economic studies and stakeholder consultation are key inputs to project scope and timing Spectra Energy is committed to keep the community updated as the plan develops BC Oil and Gas Conference 9

10 BC Pipeline Multi-Year Expansion Program Underway 2011 Program to add 170 MMcf/d of capacity & enhance access to markets 2012 Program to increase capacity by 360 MMcf/d, more expansion in development BC Oil and Gas Conference 10

11 Well Positioned to be Primary Delivery System for West Coast LNG Export Terminals Spectra Energy s BC Pipeline offers: An extensive pipeline system that is connected to over 3 Bcf/d of raw gas gathering & processing capability, and 77 Bcfof underground storage Multiple bi-directional connections to the North American pipeline grid which provide supply and market security A growing liquid market at Station 2 where a wide range of gas supplies converge Ability to leverage existing facilities to achieve economies of scale and supply optionality for LNG exports Excellent track record of system safety and reliability, supported by a world-class pipeline integrity program LNG EXPORT VANCOUVER SEATTLE Liard Horn River Cordova Montney CALGARY PORTLAND BC Oil and Gas Conference 11

12 Fort Nelson Gas Plant, British Columbia Partner of Choice: Supporting and Sustaining Our Communities through Consultation, Partnerships, and Investments

13 Partner of Choice Stakeholder Outreach In Spectra Energy operating areas, we will work proactively with local and Aboriginal groups to build and maintain ongoing, mutually beneficial relationships which will support the advancement of the interests of both Spectra Energy and local communities... We have formal processes in place to assess and monitor the environmental and social impacts of our operations We emphasize early engagement with local stakeholders, tailored to meet local needs and issues Outreach activities are company-wide and focus on continuous improvement in engagement and communications We support community capacity-building initiatives through local contracts, scholarships, skills and leadership development programs BC Oil and Gas Conference 13

14 Partner of Choice Socio-Economic Development Opportunities Spectra Energy is committed to enhancing the quantity and quality of Aboriginal and local community participation in our business and workforce We cultivate meaningful relationships and opportunities to work with us on various contracts In alignment with project safety, performance and cost By matching capacity of Aboriginal and local contractors to project scope Including the use of Aboriginal/local contract terms within our contracts to both encourage and reward contractors who assist Spectra Energy in attaining our business goals and objectives BC Oil and Gas Conference 14

15 Partner of Choice We are continuously improving, & our strategy begins at the top; needs to involve everyone; and is engrained in our larger Aboriginal engagement strategy Project: Fort Nelson North Processing Facility (under construction) Dawson Creek Processing Plant (under construction) South MaxhamishLoop Project (completed in 2011) Fort Nelson Gas Plant Turnaround (2009) Fort Nelson Carbon Capture and Storage (in progress) % of Total Man-hours (Local& Aboriginal): 11% to-date 23% to-date 11%; ~ $6.5M total local spend $3.3M local spend, $700K to Aboriginal subs $3.3M local spend to-date Keys to Successinclude Consistency; Understanding; Balance; Expectation Management; and the Will to Accomplish & Improve Responsible Land Stewardship We utilize existing infrastructure to minimize environmental footprint and social impacts We develop facilities on a staged basis to align with supply development We are sensitive to other land uses, Aboriginal concerns and stakeholder issues BC Oil and Gas Conference 15

16 Partner of Choice Strategic Giving Programs In addition to a variety of community based sponsorships, Spectra Energy and its BC employees provided over $1.0 million of support to community and charitable organizations in 2010 and donated over 2,300 hours to volunteer projects in BC. Over $182,000 given in Fort Nelson alone Recognition: Helping Hands in Action Highway Clean-up Project Mission Possible Award: United Way of Northern BC Award of Excellence: United Way of the Lower Mainland 2012 marks our 10 th Anniversary of the Northern Opportunities program, supporting students training in the north to stay in the north Teamed with industry in 2011 to launch the 4 th Class Power Engineering Program in Fort Nelson to help meet the demand for skilled trades people BC Oil and Gas Conference 16

17 Fort Nelson Gas Plant, British Columbia Maintaining BC s Natural Gas Advantage

18 Policy Priorities Building New Markets Build home grown demand for natural gas as well as diversify access to our resources through offshore markets Natural gas is a significant resourceand revenue source for BC government Clean energy that funds essential services Skilled labour and long-term meaningful job growth Recognize value of our legacy natural gas assets All British Columbians benefit from Spectra Energy s system partners since 1957 Encourage development of natural gas fired power generation to meet BC s energy needs Demand pull needed to drive drilling activity Continue efforts on one project, one process Maintain positive fiscal track record Natural Gas is BC s Economic Engine -Let s Fire on all Cylinders BC Oil and Gas Conference 18