kinder morgan on tennessee gas pipeline dec. 3, 2012

Northeast Gas Association

Pre-Winter Briefing 2012 / 2013

Tennessee Gas Pipeline Co. L.L.C.

1

Dodson Skipworth

Account Director, Northeast

December 3, 2012

Tennessee Gas Pipeline Tennessee Gas Pipeline

Forward-Looking Statements / Non-GAAP Financial

Measures

• This presentation contains forward-looking statements. These forward-looking statements are identified as any

statement that does not relate strictly to historical or current facts. In particular, statements, express or implied,

concerning future actions, conditions or events, future operating results or the ability to generate revenues, income

or cash flow or to make distributions or pay dividends are forward-looking statements. Forward-looking

statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future

actions, conditions or events and future results of operations of Kinder Morgan Energy Partners, L.P., Kinder

Morgan Management, LLC, El Paso Pipeline Partners, L.P., and Kinder Morgan, Inc. may differ materially from

those expressed in these forward-looking statements. Many of the factors that will determine these results 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 and credit 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. There is no assurance that any of the actions, events or results of the forward-looking

statements will occur, or if any of them do, what impact they will have on our results of operations or financial

condition. Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking

statement.

• We use non-generally accepted accounting principles (“non-GAAP”) financial measures in this presentation, and

our reconciliations of non-GAAP financial measures to our GAAP financial statements are on our website, at

www.kindermorgan.com. These non-GAAP measures should not be considered an alternative to GAAP financial

measures.

2

http://www.kindermorgan.com/






Agenda

3

• TGP Dynamics, Recent Trends

• Key points Winter 2012/2013

• Power Generation Market Awareness

• TGP Market Development Activities


Marcellus Shale Gas

Production

• 13,800 Miles of Pipeline

• ~1,400,000 HP Compression

• 90 Bcf Storage capacity

• 12 Bcf Linepack capacity

• Connected to all major shale sources

o Northeast: Marcellus, Utica

o All major Eastern markets

Utica Shale Gas

Production

LNG

Export

Canada

Southeast

New

England

EagleFord Shale Gas

Production

Haynesville Shale Gas

Production

Mexico

Tennessee Gas Pipeline (TGP)

4


Northeast Market Area: Source/Flow

Not to scale

Marcellus

Supply

REX, GoM,

TX , Utica

Eastern

Canada

LNG

• Marcellus production dominates

• Ontario exports

• LNG imports declining


Demand Growth: Increased Throughput on TGP

TGP Throughput

2012 thru August ~7.23 Bcf/d

Delivered 99.2% of all firm in-path gas daily

18% over 2011

Power generation drives load growth 6

0 200,000 400,000 600,000 800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2,200,000

2,400,000

2,600,000

2,800,000

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Winter Period (November – March) Average Dth/d

Market Area Supply Analysis

Station 219

Niagara (TGP) Shelton Wright Dracut Distrigas Stagecoach Marcellus REX


Tennessee Gas Pipeline – Marcellus Receipts

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Jan-0

9

Feb-0

9

Mar-

09

Apr-

09

May-0

9

Jun-0

9

Jul-09

Aug-0

9

Se

p-0

9

Oct-

09

Nov-0

9

Dec-0

9

Jan-1

0

Feb-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-

10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-

11

Apr-

11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-

11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-

12

Nov-1

2

Marcellus Avg Day Flows (Dth)

Thru November 2012

8


Winter 2012 / 2013

• TGP sees very high loads throughout winter season in Northeast markets

•Recent expansions in service, flowing

•Gas price advantages

•Limited economic recovery

•Compression horsepower utilization high

• Interruptible services of various types and levels are, and will be, interrupted

•Primary Firm in-path reliability not to be jeopardized

• TGP will closely monitor imbalances continuously

•Aggressive linepack management employed

• Shippers’ gas in storage in good shape

• Planned operational maintenance schedules managed, complete

•Compression horsepower utilization high

•Significant scheduled maintenance over Summer, Fall periods

•Hurricanes Isaac & Sandy damage minor. Industry communication / coordination excellent

• TGP posts all necessary information daily: communication critical


Restrictions of Various interruptible Services: Summer Period Northeast

10

Locations April – October: % Days

Description 2010 2011 2012

Comp. Station #245 W. Winfield NY flowing

all points east 22% 79% 94%

Comp. Station #315 Wellsboro, PA flowing

west, south 0% 99% 100%

Comp. Station 321/

325

Eastern PA/NJ headed

east to NJ,NYC 12% 73% 0%

Valve Location 355 Suffield, CT to NE

markets 6% 81% 74%


Locations Percent Days Restricted (Nov – Mar)

Description 2009/2010 2010/2011 2011/2012

Comp. Station #224 Clymer, NY flowing

north NY upstate, NE 0% 28% 30%

Comp. Station #245 W. Winfield NY

flowing all points east 42% 96% 99%

Comp. Station #315 Wellsboro, PA flowing

west, south 0% 25% 91%

Comp. Station #321

Eastern PA flowing

east 38% 48% 9%

Comp. Station #325 NW NJ east to

NJ,NYC, SW CT 0% 87% 7%

Valve Location 355 Suffield, CT to NE

markets 0% 28% 30%

Restrictions of Various interruptible Services: Winter Period Northeast

* Dramatic reduction in restrictions post 300 Line Expansion placed in service Nov, 2011


Northeast Generation Direct Tennessee

12


TGP Power Generation Volumes Northeast

13

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Burn

Plant MDQ

Total Potential Burn: 385,000 Dth/d

Total Plant Firm: 85,000 Dth/d

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

09/10 10/11 11/12

Winter

0

100,000

200,000

300,000

400,000

500,000

600,000

09 10 11

Summer

NYISO Market Plants

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Burn Plant MDQ

Total Potential Burn: 707,000 Dth/d

Total Plant Firm: 175,000 Dth/d

ISONE Market Plants


Pipeline % of

Total

YTD 2012

(MDth/d)

TGP 43% 2,360

Transco 18% 982

Stagecoach 8% 413

TETCO 7% 401

Dominion 6% 352

Columbia Gas 6% 333

Equitrans 4% 224

National Fuel 3% 168

Millennium 2% 129

National Fuel Prod 2% 109

TOTAL 100% 5,470

Marcellus Receipts by Pipeline

Source: Bentek

TGP Advantage: Unmatched Access to Marcellus

MARCELLUS

UTICA

TGP Marcellus Access

Marcellus Shale

8.9 Bcf/d – Receipt access

38 Producer Interconnections

2.3 Bcf/d – Avg. Daily Receipts (Aug)

~1.0 Bcf/d receipt access added in 2012

Indicative of continued growth

14


TGP – Recent Northeast Development

Project Capacity

(MDth/d) Shippers In-Service Status

300L Project 350,000 EQT Energy Nov 1, 2011 In Service

NSD 250,000 Cabot, Seneca, Anadarko,

Mitsui

Nov 1, 2012 In Service

Northampton 10,400 Berkshire, Bay State Nov 1, 2012 In Service

MPP Project 240,000 Chesapeake, Southwestern Nov 1, 2013 FERC Order received , On Schedule

NE Upgrade 636,000 Chesapeake, Statoil Nov 1, 2013 FERC Order received , On Schedule

Rose Lake 230,000 South Jersey Res., Statoil Nov. 1. 2014 FERC Filing pending, On Schedule

Northeast

Expansion

Up to 1.2 Bcf In Active Development TBD 2016 - 2018 In Active Development

• ~ $1.3Billion Capital

• Fully Subscribed

• In Service, On Time

• Development Continues


TGP Northeast Expansion – Bullet Line

Project Scope 1.2 Bcf/d pipeline

Wright or upstream to:

Dracut MA and;

Backhaul existing markets

3rd pipeline into region

• Benefits all existing markets

• Enhances existing system

• Development of new markets

High pressure line

Expandable

In service 2017-2018

16

Wright


TGP Northeast Expansion – 200 Line Looping

Project Scope

Lower volume scale

• 0.5 to 1.0 Bcf/d

Current gas infrastructure

located in TGP corridor

Increases deliverability

Flexibility in design

In service 2016-2018

17

Dracut

Wright


Key Commercial Terms

Receipt Point Wright NY, upstream

Delivery Points (1) Power Plants and LDCs on TGP’s 200 line,

(2) Existing pipeline interconnects

Supply Access TGP, Constitution, IGT

Volume 500 – 1,200 MDth/day

Term 15 - 20 years

Rate Structure Negotiated, Fixed Rate

Indicative Rate Discussions underway

In-Service Date November 2016 - 2018

TGP Northeast Expansion

18


Tennessee In The Heart of Utica Shale

19

UTICA

TGP Utica development

ongoing: ~ 2.5 Bcf/d

supply liquidity

Multiple lines thru supply-

rich area

Direct access to liquid

pooling points

Access to growing

markets

Rich gas solutions

underway

Northeast Gas Association

Pre-Winter Briefing 2012 / 2013

Tennessee Gas Pipeline Co. L.L.C.

20

Dodson Skipworth

Account Director, Northeast

December 3, 2012

kinder morgan on tennessee gas pipeline dec. 3, 2012

Documents

gaap financial statements

miles of pipeline

retail natural gas

nongaap measures

paso pipeline partners

regulatory conditions

future results of operations

future actions