Business Development Outlook Paul Smith Director, Business Development 1
Development Trends TGP projects nearing in-service Supply Push: Susquehanna West: 145k In Service (9/1) Orion: 135k 11/1/2017 Broad Run Expansion: 200k 6/1/2018 Demand Pull: Connecticut Expansion: 72k 11/1/2017 Triad: 180k 11/1/2017 Southwest LA Supply: 900k 1/1/2018 Lone Star: 300k 1/1/2019 Forecast 50 Bcf/d? Development opportunities Bridging Northeast shale and GOM demand growth Nearing end of pipeline reversal phase Entering new greenfield phase Challenging economics for next N S project Incremental capacity for LNG and Mexico export Support growth and supply diversity for powergeneration, LDC and industrial customers? Source: NGI, TGP Analysis 2
Regional Development Overview
Zone 0 Supply N S Permian Eagle Ford Conventional TGP Project Customers Quantity (Dth/d) Timing South System Flex MexGas 500,000 In-Service Lone Star Cheniere 300,000 Jan-2019 Demand Mexico LNG Export Power Industrial Infrastructure Trends Squeezing N S capacity Supply short at Agua Dulce Permian cross-haul TGP Development South Pool to Agua Dulce Waha Corpus Christie LNG Freeport LNG Pemex Rio Bravo TGP Development 4
Zone L/1 Supply From Northeast Haynesville Fayetteville GOM Demand LNG Power (SE) Industrial TGP Project Customers Quantity (Dth/d) Timing SW LA Supply Mitsubishi, Mitsui 900,000 Jan 2018 Northeast Supply Southeast Power-Gen Infrastructure Trends Pipeline reversals Further LNG expansions Power-gen growth TGP Development Marcellus/Utica to GOM Capacity to LNG projects Enhanced Florida access T85 Sabal Trail (to FL) Sabine Pass Cameron TGP Development 5
Zone 1 Florida Access TGP 500 Leg flush with > 1.5 Bcf/d supply from Marcellus / Utica Florida power-gen market continues to grow (now over 2 Bcf/d) Sabal Trail Phase 1 placed into service July 3, 2017 830,000 Dth/d for FPL and Duke Phase 2 increases capacity to > 1 Bcf/d by 2021 T85 Pools provide enhanced access to Florida market via Sabal Trail and Mobile Bay Lateral 6
Zone 2/3 Supply From Northeast Broad Run MGT (to Zone 1) Northeast Supply TCO Pool Demand South of Sta. 87 Power Hanging Rock Broad Run Infrastructure Trends Pipeline Reversals TGP, TETCO, CGT, MGT MGT TGP Development N S Capacity Tennessee Valley Power-Gen TGP Project Customer Quantity (Dth/d) Timing Broad Run Flex Antero 590,000 In-Service Broad Run Expansion Antero 200,000 Jun 2018 TGP Development 7
Zone 4 Supply NEPA Marcellus SW Marcellus Utica 5.2 Bcf/d TGP Project Customer Quantity (Dth/d) Timing Susquehanna West Statoil 145,000 In-Service Orion Cabot, So. Jersey 135,000 Nov 2017 Triad Invenergy 180,000 Nov 2017 Demand Dawn To Canada Liberty Rivervale Power Cove Point Q4 Canada PennEast Lackawanna Infrastructure Trends REX Carroll Co. Greenfield & Plus-One ~17 Bcf/d new capacity coming ~12 Bcf/d out of basin Cove Point TGP Development Connecting supply to TGP and other pipeline interconnects Connecting new markets TGP Development 8
Impact of Rover Phase 1A in-service on 9-1-2017 Capacity ~ 700,000 Dth/d on Mainline A Cadiz to Defiance Receipts: ORS and MarkWest Deliveries: ANR and PEPL/Trunkline Majority of flows from ORS to ANR Some HDDs resumed 9/18 Clarington Lateral Phase 1B ~ 1.0 Bcf/d Dec 2017 Phase 2 ~3.25 Bcf/d Mar 2018 Impacting flows on other pipelines * Receipts to TETCO down ~450,000 Dth/d Receipts to REX down ~ 50,000 Dth/d REX deliveries to ANR down ~300,000 Dth/d Lifting regional basis and production Northeast production now > 24 Bcf/d Up to 200,000 Dth/d of new production attributed to Rover New production expected to fill by 2019 * TGP estimates based on industry sources and pipeline postings 9
SW Marcellus / Utica Takeaway Projects NEXUS 255 Miles 1.5 Bcf/d Mid-2018 Atlantic Coast Pipeline 600 Miles 1.5 Bcf/d Late-2019 REX 2.6 Bcf/d In-Service Mountain Valley Pipeline 303 Miles 2.0 Bcf/d Late-2018 10
Northeast Projects Northern Access 97 Miles 0.35 Bcf/d 2018 Atlantic Sunrise 183 Miles 1.7 Bcf/d July 2018 Millennium Eastern System Upgrade 8 Miles 0.22 Bcf/d Fall 2018 PennEast 120 Miles 1.1 Bcf/d Late 2018 Millennium Valley Lateral 8 Miles 0.13 Bcf/d Late 2017 11
Zone 5/6 Supply From PA Interconnect LNG Canada NY HF ban? TGP Project Customers Quantity (Dth/d) Timing CT Expansion So CT, CT Natural, Yankee Gas 72,100 Nov 2017 Demand Canada LDC Power Canadian Supply Canadian Supply Infrastructure Trends NY Permitting Litigation Capacity to New England TGP Development Connecting 300 Leg supply to new/expanded Interconnects TGP Development 12
Summary TGP in construction phase on numerous projects Reversal of TGP nearly complete Three projects entering service 11-1-2017 NE supply and GOM demand marches on Numerous greenfield and plus-one projects under construction Challenging economics moving more northeast supply to the south TGP development activity South Texas and Mexico LNG and industrial markets near GOM New England LDCs and power Connecting Marcellus and Utica supply Local markets and interconnects Bridge to GOM 36 Looping for Triad project 13
Business Development Contacts Preston Troutman Vice President Business Development Tennessee Gas Pipeline Office: 713-420-3022 Cell: 713-206-3290 preston_troutman@kindermorgan.com Paul Smith Director Business Development Tennessee Gas Pipeline Office: 713-420-4686 Cell: 205-910-9185 paul_smith2@kindermorgan.com Stuart Neck Director Business Development Tennessee Gas Pipeline Office: 713-420-2230 Cell: 281-948-2405 stuart_neck@kindermorgan.com Alison Stringer Manager Business Development Tennessee Gas Pipeline Office: 713-420-5176 Cell: 281-814-7361 alison_stringer@kindermorgan.com Christine Pratt Director Commercial Contract Admin Tennessee Gas Pipeline Office: 713-420-3669 Cell: 832-492-8067 christine_pratt@kindermorgan.com Parisa Mansoori Senior Account Manager Tennessee Gas Pipeline Office: 713-420-4855 Cell: 832-444-1328 parisa_mansoori@kindermorgan.com 14