Natural Gas Supply 2018 and Beyond Moncton, NB November 15, 2018 Mike Whalen General Manager
Maritimes & Northeast Pipeline System Quebec New Brunswick Maine Point Tupper VT Saint John Goldboro NH MA Boston Nova Scotia Halifax Maritimes & Northeast Pipeline Jointly Owned Facilities* Existing Compressor Stations Corridor Resources Supply Lateral Canaport LNG Brunswick Pipeline Portland Natural Gas Transmission System Algonquin Gas Transmission Tennessee Gas Transmission * Owned by Maritimes & Northeast Pipeline, L.L.C. U.S. & PNGTS
Development of Local Gas Markets Fredericton New Brunswick Prince Edward Island Moncton Point Tupper Saint John Goldboro Nova Scotia Halifax Maritimes & Northeast Pipeline Canadian Laterals 3
Development of Local Gas Markets LDC Delivery Point Power Plant Industrial Customer CNG Facility EGNB - Fredericton Irving Oil - Lincoln EGNB - St. Stephen EGNB - St. George EGNB - Moncton EGNB - Sackville Cavendish Farms Port Elgin Amherst Heritage Gas Oxford Heritage Gas J.D. Irving St. George VT NH EGNB - Saint John (4) Irving Oil Saint John J.D. Irving Saint John Bayside Power Saint John J.D. Irving Saint John Federal Gypsum - Point Tupper Port Hawkesbury Paper Point Tupper Halifax SOEP Point Tupper Thornhill Heritage Gas Halifax Airport Heritage Gas Halifax Peninsula Heritage Gas Boston Nova Scotia Power - Halifax MA 4
2014-18 M&N Canada Domestic Demand 300,000 Average Peak 250,000 246k 258k 259k 238k 217K 200,000 183k 182k 176k 160k 155k MMBtu/d 150,000 100,000 50,000 0 2014 2015 2016 2017 YTD 2018 5
2018 M&N Canada Domestic Demand Industrial 37% LDC 24% CNG 7% Power Gen 32% 6
M&NP Gas Supply (2017 & YTD 2018) 250,000 2017 YTD 2018 236k 200,000 164k Average Dth/D 150,000 100,000 101k 50,000 68k 21k 41k 49k 2k - Sable EnCana Canaport PNGTS 8
M&NP Gas Supply (Oct 2017 Sep 2018) 700,000 Average 604k Peak 600,000 500,000 400,000 Dth/D 300k 300,000 220k 200,000 116k 100,000 75k 50k - Sable Canaport PNGTS 9
Seasonality of Gas Supply October 2017 September 2018 250,000 Winter Average (Nov-Mar) Summer Average (Apr-Aug) 230k 212k 200,000 Average Dth/D 150,000 100,000 80k 71k 101k 50,000 14k - Sable Canaport PNGTS 10
M&NP Changing Flow Dynamics (2011-2018) 350 347 Days Flowing South Days Flowing North 317 300 267 250 225 241 Days 200 169 159 182 170 151 150 115 100 82 50 32 14 18 4 0 2011 2012 2013 2014 2015 2016 2017 YTD 2018 11
Atlantic Bridge Increasing pipeline capacity to allow abundant, economical, regional supplies to flow to New England and Atlantic Canada markets Project Scope: ~133 MMcf/d expansion of the Algonquin and M&N pipelines CapEx: $500MM Customers: Various local distribution and industrial companies in New England and Atlantic Canada 12
Natural Gas Supply 2020 and Beyond Chris Shorts Director Energy Services November 15, 2018
Enbridge Assets Dawn
Supply serving Eastern Canada Robust Market at Dawn Dawn is the largest natural gas trading hub in Eastern Canada and second largest in North America DAWN HUB Existing Supply New Supply New markets and growing Dawn demand Eastern Canadian and U.S. NE LDCs as well as power generators and industrial customers choose Dawn to meet their gas supply needs
2015 2017 Dawn Parkway Expansion 1.3 PJ/d of capacity added On time! On budget! Open Season for 2021/2022 incremental expansion 4
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Portland Natural Gas Transmission System/ TransCanada Mainline Natural Gas Supply 2020 and Beyond November 15, 2018
Forward Looking Statement Forward-Looking Information This presentation may contain certain information that is forward-looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "believe", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking information. Forward-looking statements in this presentation are intended to provide information regarding TransCanada and its subsidiaries, including management s assessment of PNGTS future financial and operations plans and outlook. Forward-looking statements in this document may include, among others, statements regarding the anticipated business prospects and financial performance of PNGTS, expectations or projections about the future, and strategies and goals for growth and expansion. All forwardlooking statements reflect TransCanada s beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among others, the ability of PNGTS to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of PNGTS, the availability and price of energy commodities, capacity payments, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy sectors, construction and completion of capital projects, and the current economic conditions in North America. By its nature, forward looking information is subject to various risks and uncertainties, which could cause actual results and experience to differ materially from the anticipated results or expectations expressed.. PNGTS undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. 2
Portland Natural Gas Transmission System Links supply from TCPL with downstream deliveries to MNE Delivers WCSB (conventional and shales) and Marcellus gas to: Atlantic Canada markets at Westbrook, Maine New England markets at Dracut, Massachusetts PNGTS owned by: TC Pipelines, LP 61.71% Energir 38.29%
Plentiful North American Supplies WCSB 2007-165 Tcf 2017-1,018 Tcf Rockies / San Juan 2007-299 Tcf 2017-396 Tcf Appalachia 2007-207 Tcf 2017-1,103 Tcf Mid-Continent / Permian 2007-274 Tcf 2017-274 Tcf Gulf Coast 2007-339 Tcf 2017-593 Tcf
TransCanada s Natural Gas Pipeline Network
The Portland Xpress Project Project Scope: LDC-based Project Total Project Capacity of ~193,000 GJ/d 19,000 GJ/d to Atlantic Canada Construction (in Canada) on the TransCanada Mainline and TQM Construction of Compression only on PNGTS Joint Facilities Nov-20 Target In-Service Date (phased-in over 3 year period 2018-2020) 6
The Westbrook Xpress Project Project Scope: Serves predominantly Atlantic Canada Market at Westbrook Construction (in Canada) on the TransCanada Mainline Construction of Compression only at Westbrook, Maine Target In-Service: Phase I 11/2019 Phase II 11/2021 7
For More Information, Contact: Cynthia L. Armstrong Marketing Director Portland Natural Gas Transmission System One Harbour Place, Suite 375 Portsmouth, NH 03801 www.pngts.com Office: (603) 559-5527 Fax: (603) 427-2807 Cell: (603) 498-0782 Email: cynthia_armstrong@transcanada.com AOL IM: cynthiarmstrong LinkedIn: www.linkedin.com/in/cynthiarmstrong/ 8
Énergie NB Power Brad Coady, P. Eng. Director, Strategic Planning 1
ENERGY INFRASTRUCTURE Belledune Point Lepreau Mactaquac
NB POWER STRATEGIC PLANNING Develops an integrated resource plan Matches supply and demand at the least cost possible Uses advanced modelling Predicts economic dispatch and fuel requirements over short run Applies strategic plan, gov t policies, & regulations Renewable Portfolio Standards - LORESS Carbon pricing impacts Energy Smart NB
TRENDS IMPACTING NB POWER Asset Retirement Opportunities Environment & Climate Change Changing Customer 2018 New Competition & Grid Complexity
SETTING OUT ON A NEW PATH
Nutrien writes off N.B. potash mine
The cash cost of production in New Brunswick is just so much higher than Saskatchewan. 430 jobs won t be coming back to the location near Sussex, New Brunswick. - CEO of Nutrien
Gas Cost for Canadian Gas Utilities
Some Basic Math Atlantic Canadians pays $7.00/GJ more Customers use approximately 50,000 GJs/day There are 365 days in a year $128 million... PER YEAR
Gas Cost for Power Plants and Industry
Some Basic Math Power plants and industrial users pays $4.00/GJ more Customers use approximately 100,000 GJs/day There are 365 days in a year $146 million... PER YEAR
What Could We Do With... $128m + $146m... $274m/yr? Shorter Wait Times Stop Closing Schools Lower Power Rates Attract Industry?
Enbridge Global energy infrastructure leader We transport energy. We generate energy. We distribute energy. 1
Enbridge Gas New Brunswick Providing safe, reliable natural gas to New Brunswickers Operates & maintains over 1,200 km pipeline Serves 12,000 customers in 12 communities Invested over $500 Million in NB 2/3 of residents benefit from natural gas Energy of choice in public schools, hospitals, universities, retail locations In last 5 yrs, customers saved $45M by choosing natural gas Homeowners see 20% savings compared to electricity for home heating 2.5 M tonnes of GHG emissions reduced in NB As a result of our customers choosing natural gas over higher-carbon energy options 2
Where does our supply come from? Primarily from multiple North American Sources Traditionally: Sable Island, NS. More recently: primarily from multiple NA sources, including Western Canadian Sedimentary Basin (in Alberta, parts of Saskatchewan and British Columbia), Marcellus shale deposits (found throughout the Appalachian Basin from New York to Virginia and into eastern Ohio and western New York), and traditional US production fields. Other sources include LNG from the Canaport LNG terminal and the local supply from McCully Field. 3