2006 Energy Round TableCanada, an Emerging Energy Superpower

September 26th, 2006 Calgary, Alberta

Ian D. Anderson President

Kinder Morgan Canada

CANADA INC.CANADA INC.

2

Overview

• Kinder Morgan Profile

• The Challenge, The Opportunity

• Kinder Morgan Canada as Part of the Solution

3

This presentation contains forward looking statements, including these, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Exchange Act of 1934, as amended. Forward looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results and securities values of Kinder Morgan Inc., Kinder Morgan Energy Partners, L.P. and Kinder Morgan Management, LLC (collectively known as “Kinder Morgan”) may differ materially from those expressed in the forward-looking statements contained throughout this presentation and in documents filed with the SEC. Many of the factors that will determine these results and values are beyond Kinder Morgan's ability to control or predict. These statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others, the ability to achieve synergies and revenue growth; national, international, regional and local economic, competitive and regulatory conditions and developments; technological developments; capital markets conditions; inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather conditions; environmental conditions; business and regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural products; the timing and success of business development efforts; terrorism; and other uncertainties. You are cautioned not to put undue reliance on any forward-looking statement.

Forward Looking Statements

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Kinder Morgan Assets

2

Pacific

NorthernTransColorado

2 PacificCALNEV

KMCO2

2

2KMTP

KMTejasWink

SACROC

Yates7 5 2

22

Plantation

Cypress

NGPL

8

Central Florida4

2

2

2 43

2

2

3

2KMIGT

Trailblazer

3

Cochin

North

Express

Platte

CorridorTransMountain

2

Claytonville

2

2

3

NGPL (KMI)NGPL GAS STORAGE (KMI)

RETAIL GAS DISTRIBUTION (KMI)

GAS-FIRED POWER PLANTS (KMI)

PRODUCTS PIPELINES (KMP)

PRODUCTS PIPELINESTERMINALS (KMP)

TRANSMIX FACILITIES (KMP)NATURAL GASPIPELINES (KMI-KMP)NATURAL GASSTORAGE (KMI-KMP)

NATURAL GASPROCESSING (KMI-KMP)

CO2 PIPELINES (KMP)

CO2 OIL FIELDS (KMP)

CRUDE OIL PIPELINES (KMP)

TERMINALS (KMP)

KM HEADQUARTERS

TERASEN GAS (KMI)PETROLEUM PIPELINES (KMI)

PETROLEUM PIPELINESTERMINALS (KMI)

(2,3,8) INDICATES NUMBER OFFACILITIES IN AREA

5

KMP: Solid Asset Base Generates Stable Cash Flow

51% Texas Intrastate 49% Rockies Little incidental commodity risk

30% CO2 transport and sales 70% oil production related Expected production hedged (b):

2006=88%2007=75%2008=54%

(a) Budgeted 2006 distributable cash flow before G&A and interest(b) Net equity production, approved plus identified potential projects. Includes heavier NGL components (C4+). (c) Terminals are not FERC regulated except portion of CalNev.

47% Liquids, 53% Bulk Geographic and product diversity 3-4 year average contract life

Refinery hub to populationcenter strategy

68% Pipelines 27% Associated Terminals (c)

5% Transmix No commodity price risk

ProductsPipelines

27%

Natural GasPipelines

25%

CO2

29%

Terminals19%

KMP2006 DCF (a)

Terminals

Products Pipelines

Natural Gas Pipelines

CO2

6

KMI: Solid Asset Base Generates Stable Income

(a) Budgeted 2006 segment earnings before G&A and interest.(b) Includes: (i) general partner interest, (ii) earnings from ~ 20 million KMP units & (iii) earnings from ~ 10 million KMR shares.

FERC regulated with 3-year average contract life

Primary customers are Illinois local distribution companies

Little incidental commodity risk

General partner interest earns incentive distributions

Owns 13% of total limited partner units

Investment in KMP (b) NGPL

Natural gas distribution service Serve ~ 890,000 customers in

British Columbia Serve ~ 245,000 customers in

Colorado, Wyoming and Nebraska

RetailKM Canada

Three major systems connected to Canadian Oilsands

Majority of capacity committed under long-term contracts

NGPL30%

KM Canada7%

KMP39%

Retail GasDistribution

23%

Other1%

KMI2006 Segment Income (a)

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(a) Source: CAAP May 2006 Canadian Crude Production and Supply Forecast

(b) Source: NEB 2003 study “Canada’s Energy Future, Scenarios for Supply and Demand to 2025”.

(c) Source: CAAP May 2006 Canadian Crude Production and Supply Forecast

345315

270

130 115 100 100 93

40 32

(reserves billions of barrels)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2001 2003 2005 2007 2009 2011 2013 2015

Oil SandsPentanes/CondensateConventional HeavyConventional Light/Med

(MBbl/d)

Western Canadian Crude Production (a)

1 MMBbl/dOil Sands

3.5 MMBbl/d

The Opportunity – Oil Sands Production

0

50

100

150

200

250

300

350

Ven

e-zu

ela

Can

ada

Sau

diA

rabi

a

Rus

sia

Iraq

UA

E

Kuw

ait

Iran

US

A

Liby

a

BitumenOil

World Oil & Bitumen Reserves – Top 10 (b)

Export Pipeline Capacity (c)

Enbridge**

Trans MountainExpress

Others

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2005 2007 2009 2011 2013 2015

Export Pipeline Capacity

Western Canada Demand

Western CanadianProduction*

New CapacityRequired

(MBbl/d)

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(MBbl/d)Total

RefineryInputs

%Imports

CanadianImports as% of Total

Imports

PADD I (E. Coast) 1,597 97% 13%

PADD II (Midwest) 3,288 89% 36%

PADD III (G. Coast) 7,438 59% ---

PADD IV (Rockies) 556 46% 100%

PADD V (W. Coast) 2,596 36% 9%

Total 15,475 65% 16%

U.S. Crude Refinery Inputs by PADD – 2004 (a)

The Opportunity – U.S. a Significant Importer of Crude

0

500

1,000

1,500

2,000

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

E

2009

E

AN

S C

rude

Oil

Pro

duct

ion

(MB

bl/d

)

Canadian crude through

Trans Mountain16% (100 MBbl/d)

Other84% (615 MBbl/d)

Alaskan North Slope Production Declining (b)

Washington State Refinery Capacity (c)

(a) Source: EIA “Petroleum Supply Annual 2004”.(b) Source: CIBC Jan-2006 industry report “Oil Pipeline Expansion: Refiners

in Traditional Markets Girding for Expanded Diet of Canadian Heavy”.(c) Washington state crude oil refinery capacity. Sources: DBRS Oct-2005

industry report “The Canadian Oilsands”, Company reports.

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Kinder Morgan Canada

CorridorCorridor

Express/Platte

Express/Platte

Trans MountainTrans Mountain

Operator of 3 Oil Pipelines

Trans Mountain is sole Pipeline from Alberta to West Coast

Express is largest line to PADD IV

Platte serves large PADD II market

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Kinder Morgan Canada

Trans MountainTrans Mountain

11

COOK INLET

COASTAL

LA Basin

ANS

OCS

SJV

West Coast Crude Market Fundamentals

Production Forecast

Source: EAI Inc.

12

Total West Coast Crude Demand

Alaska

OCS

San Joaquin Valley

CoastalLa Basin

Imports

Balance Outlook

West Coast Crude Market Fundamentals

Source: EAI Inc.

13

Trans Mountain Volume History

0

50

100

150

200

250

300

Jan-

04

Apr-0

4

Jul-0

4

Oct-04

Jan-

05

Apr-0

5

Jul-0

5

Oct-05

Jan-

06

Apr-0

6

thou

sand

bb/

d

TMPL Throughput

10% Heavy

0% Heavy

Denotes Apportionment

14__________________________

TMX Plan – 1.1 Million bpd

1,100 kbpd

400 kbpd

700 kbpd

Existing: 225,000 bpd (heavy)

TMX-1: 2007/08 Pump Station Expansion – 35,000 bpd Anchor Loop – 40,000 bpd

Southern Expansion: 2010/11 TMX-2 – 100,000 bpd TMX-3 – 300,000 bpd

Northern Expansion TMX-North – 400,000 bpd

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TMX Value Proposition

• Market Fundamentals Support an Expanded Western Option– Traditional market area is saturated/ Market clearing to support netbacks

– Washington State refinery conversions

– California opportunity• limited Canadian penetration of PADD V market to date

• declining ANS/domestic production – Asian market option

– Increasing value of holding options in this market environment

• TMX Benefits– Established operations & infrastructure

– Connected to existing and expanding markets

– Staged expansion able to match timing of market needs – risk reduction

– Export option (also staged to match market needs)• Westridge dock expansion• Northern Leg

• Additional Value Added Services– Blending and storage at Edmonton, Sumas, Burnaby

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Corridor Expansion

System – 285 mile 24” x 12” line between Muskeg River Mine and Scotford Upgrader 27 mile crude and supplemental line

Capacity – 155,000 bpd of dry bitumen from mine to upgrader 71,000 bpd diluent back to mine

Shippers – 100% contracted to Athabasca Oil Sands

Planned Expansion – new 42” line, up to 1.0 Mil bpd In service 2009

Future Plans – more oilsands take away capacity to match production

Muskeg River Mine

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Kinder Morgan Canada

Express/Platte

Express/Platte

18

050

100150200250300350400450500550600650700

MB

PD

Cndn Imports 128 125 166 218 256 245 237 273 284 279 283 299 308 320 335 353 372 391 409 426 445

Dmst Imports 25 30 43 13 13 13 13 13 15 17 3 3 3 3 3 3 3 3 3 3 3

Core Prod 350 329 323 294 268 270 269 261 261 288 307 300 286 275 264 251 238 227 217 207 196

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Canadian ImportsCanadian Imports

RM Core ProductionRM Core Production

Refinery Runs and Domestic Exports

Assumes no refinery closures and no major expansions

PADD IV Market Fundamentals

Source EAI 2006

Supply – Demand Framework

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Express – Platte Pipeline Systems

Express Pipeline: Expanded to 280,000 bpd in April 2005 Underpinned through 235,000 bpd of

firm contracts expiring in 2012/2015 Ownership: 1/3 KMI, 1/3 Ontario

Teachers, 1/3 OMERS Talking about Expansion with

Refineries in PADD IV

Platte Pipeline: 165,000 bpd capacity: Casper to

Guernsey 143,000 bpd capacity: ex-Guernsey Increased local production plus

Canadian crude wishing to access PADD II has created proration issues at Guernsey

Proration policies currently before the FERC

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Gulf Coast Market Access

Fort McMurray

Edmonton Cold Lake

Vancouver

Anacortes

Guernsey

Salt Lake CityDenver

Cushing

ChicagoDetroit/Toledo

WoodRiver

Exp

ress

Platte

Ran

gelan

d

Eas

tern

Co

rrid

or

Pacific

Co

rrid

or

Enbridge

TMPL

Midland

Patoka

Hardisty

Houston

Enbridge

Koch

Freeport

Corpus Christi

Jayhawk

Frontier

Casper

Billings

PADD IV

PADD III

PADD II

Bo

w R

iv er

Southern Access

Spearhead

Cenex

Express Routing

Bullet Line

Patoka South

• Express Routing:

• Existing KMC RoW to Casper/Guernsey

• Satisfy incremental Rockies, Denver, Panhandle supply needs

• Bullet Line:

• Existing KM RoW in OK/TX

• 36” line in-service early 2010

• Patoka South:

• Supply from expanded Express/Platte and others

• Existing KM RoW/PL assets in IL/ MO/AR/TX

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Kinder Morgan Canada Terminals

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Terminals Activities – Alberta

Edmonton North Forty Project:

2 million bbls capacity in 9 tanks Connectivity to major feeder

streams in area + Trans Mountain and Enbridge

Facility now fully underpinned with long-term contracts

In service April 2007 KM’s first major terminal project

in Canada

Hardisty:

Land recently acquired to allow construction of 3 million barrels of heated storage

Commercial underpinning now being sought

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The Big Picture – Developing a CO2 Market

1. Based on CO2 captured from industrial processes

2. Dual Objectives• EOR (Commercial)• Storage (compliance)

3. Pipeline infrastructure to accommodate all needs

4. Complex/ New Systems

5. The Enormity of the Task

Sequestration

EOR Storage

Carbon CaptureIndustrial Source

TransportationInfrastructure

Meter/ Monitor Verify (MMV)

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Comparative Market Perspective

ITEM PERMIAN BASIN

ALBERTA

Emissions Issue None at this time Kyoto Goal -

4 Bcf/d GHG reduction

CO2 Demand 1.4 bcf/d 400-500 mmcf/d (est.)

OOIP (bn bbls) 90+ 20

CO2 Pipelines (mi.)

2,000 None

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CO2 - EOR: Major Capital Commitment& Extensive Expertise

CO2 -EOR Operations (SACROC) Snyder Gas Plant

CO2 Supply OperationMcElmo Dome CO2 Plant

Kinder Morgan • Well over $US 1.0 billion in capital• 20+ years experience• Over 1000 experienced staff• Continuing excellence (new p/l, new facilities, $US 200 million capital expansion• Active DOE sequestration role

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CO2 Infrastructure

Phase I: • Heartland hub• Mainline• SW lateral• NW lateral

[could be stagedin sequence}

Phase II: • Ft. McMurray line• If sequestration

need or new dilbit

Phase III: • Init. Design, could

route Red Deer• Depends on Brooks/

Taber and immisc

Current engineering route estimate. Pending final design/ procurement only.

CANADA INC.CANADA INC.