NGTL System and Foothills Pipeline Customer Meeting

August 3, 2017

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Welcome

Safety Procedure:

• In case of alarm or emergency, please proceed immediately to the ground-level exit

• Several stairways to ground-level exit are outside this room directly ahead and to the right

• Muster point is located at the Milestones restaurant on Stephen Ave.

Participating through WebEx:

• Please sign-in through WebEx application including your full name and company

• In response to customer requests to reduce background noise and improve audio quality,

all WebEx participants will be placed on mute

• Prior to commenting or asking a question, please remember to take yourself off mute and

identify yourself

Information provided herein is for informational purposes only and is not to be relied upon for any other purpose whatsoever. The information is based upon certain assumptions that may or may not be accurate, and therefore is subject to various risks and uncertainties. TransCanada shall not be liable for damages sustained as a result of any use or reliance on such information.

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• Cover up. Wear tightly-woven clothing that blocks out light. Try this test:

Place your hand between a single layer of the clothing and a light source. If

you can see your hand through the fabric, the garment offers little protection.

• Use sunscreen. A sun protection factor (SPF) of at least 15 blocks 93 percent

of UV rays. You want to block both UVA and UVB rays to guard against skin

cancer. Be sure to follow application directions on the bottle.

• Wear a hat. A wide brim hat (not a baseball cap) is ideal because it protects

the neck, ears, eyes, forehead, nose, and scalp.

• Wear UV-absorbent shades. Sunglasses don't have to be expensive, but

they should block 99 to 100 percent of UVA and UVB radiation.

• Limit exposure. UV rays are most intense between 10 a.m. and 4 p.m. If

you're unsure about the sun's intensity, take the shadow test: If your shadow

is shorter than you, the sun's rays are the day's strongest.

Safety Moment -HOT ENOUGH FOR YA?

SOURCE: https://www.osha.gov/Publications/OSHA3166/osha3166.html 3

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Agenda

• NGTL System Operational Capability Management

• USJR Firm Receipt Restriction Methodology

• DSJR Interruptible Delivery Restriction Methodology

• 2017 Outlook – Upstream James River

• NPS 48 Edson Mainline (EDSML) Outage Details

USJR: Upstream James River receipt area

DSJR: Downstream James River delivery area4

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Operational Capability - Context

• NGTL System “load factor” is high and expected to remain so at least through 2017 and 2018

• Supply evolution/concentration in the USJR receipt area

• System expansion to add capacity and flexibility is in progress

• Extensive pipeline integrity program is in progress

• Pipeline MOP de-rates and system constraints affecting USJR are all resolved

• Pursuit of strategies and opportunities to maximize firm service reliability

Firm service reliability is a key objective

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NGTL System Operational Capability Management

1. Preventative measures and risk mitigation

• Maximize facility and pipeline availability

2. Outage planning, scheduling, and resourcing

• Industry and interconnect collaboration

• Advance notice of service restrictions (timing, area, type)

• Enhanced management of linepack, OBAs, supply demand balance zones

• Optimization and refinement of outage execution

3. Execution of strategies and pursuit of opportunities to maximize firm service reliability – examining all options

• IT delivery restriction to minimize amount/duration of FT receipt restriction

• Operational storage – viability, cost, benefit under review

• System expansion, emphasis on alternatives that enhance service reliability

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NGTL System – 2017 to 2020 Expansions

• Significant additional capacity is being added to System

• ~$7 billion of proposed projects

• Continuing to connect new supply and addressing geographic supply shift

• Meeting intra-basin demand growth and addressing export demand through West Gate expansion and Mainline LTFP service

• Facilities being added on multiple paths which will improve system reliability

2018-2020 Facilities

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• Customer Feedback: FT-R Reliability during USJR maintenance

• NGTL Tariff, General Terms and Conditions, section 11.4:

• Curtailments prioritized in the following order:

• Firstly, service under interruptible Rate Schedules (IT-R, IT-D, IT-S) prorata based on Nominations; and

• Secondly, service under firm Rate Schedules (FT-R, FT-D, FT-RN, FT-DW, FT-X, FT-P, LRS, LRS-3, STFT) prorata based on Contract Demand

• Higher concentration of receipt gas coming on in the same part of the

system, the USJR area.

Evolution of NGTL Service Restrictions

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Upstream James River (USJR)Firm Receipt Restriction Methodology

• Firm receipt capability determined based on expected supply distribution with system operating near MOP

• Area of impact based on “hydraulic equivalence” test

• Locations near and downstream the bottleneck(s) excluded

• Typical timeline:

• NrG Highway notice day (-3)

• Reduced IT and FT receipt allowable day (-1)

• Outage execution day (0 to n)

• Increased FT allowable day (n+1)

• Increased IT allowable day (n+2 or later)

Resultant receipt flow is based onfirm contract allocation and utilization

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Downstream James River (DSJR)Interruptible Delivery Restriction Methodology

• Interruptible delivery capability determined based on required reduction in flow through the bottleneck(s)

• Viable only at certain times and with certain outages

• Area of impact all deliveries downstream the bottleneck(s)

• Typical timeline:

• NrG Highway notice day (-4)

• Reduced IT-R/IT-S and IT-D/IT-S allowable day (-3)

• NrG Highway notice FT-R allowable (-2)

• Reduced FT-R allowable, if required day (-1)

• Outage execution day (0 to n)

• Increased FT-R allowable day (n+1)

• Increased IT-D/IT-S, IT-R/IT-S allowable day (n+2 or later) *may be separate timing

Resultant receipt flow is based on daily supply demand balancing

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Downstream James River MethodologyWhen do we expect to use this approach?

• Daily supply demand balancing will result in a reduction in physical receipt flow

• Supply demand balance zone may be adjusted to expedite

• Associated supply demand response must be upstream the bottleneck(s) – reduce flow through the bottleneck(s)

• Reduction in DSJR receipts (including storage withdrawal) will notreduce flow through the bottleneck(s)

• Increased USJR delivery flow (storage injection) and reduced USJR field receipt may reduce flow through the bottleneck(s)

• Outages north of Saddle Hills and south of Edson may be candidates for the DSJR methodology

• Area of impact includes most of the USJR field receipts

• Storage injection locations upstream the bottleneck(s)

DSJR methodology and the timing and location of supply responsemay change over time

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Upstream James River (USJR)

Downstream James River (DSJR)

Expected Outage Execution Timing

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MEKRD

GFISH

4.9

5.3

5.7

6.1

6.5

6.9

7.3

7.7

8.1

8.5

8.9

9.3

9.7

10.1

10.5

140

160

180

200

220

240

260

280

300

Upstream James River Receipt AreaSegments 1, 2, 3, 4, 5, 7, partial 8, partial 9, 24, 26

Capability Assumptions:GPML Loop - McLeod River in-service September 1, 2017 Otter Lake B2 and Alces River B3 in-service November 1, 2017

Nordegg C/S

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714

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Clearwater # 5 C/S

2017 Review & Outlook

NPS 48 EDSML Outage

MEKRB

106m3/d Bcf/d

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NPS 48 EDSML Outage Details

August 11th – 21st Outage Driver:

• NPS 48 Edson Mainline Loop # 3 Outage

• NPS 48 GPML Loop # 2 - McLeod River Tie-In

• Latornell C/S Maintenance

Bundled Maintenance:

• NPS 42 GPML Wapiti River Modifications

• NPS 36 GPML Receiver Install

• Swartz Creek C/S Maintenance

• Nordegg C/S Maintenance

• Schrader Creek C/S Maintenance

• NPS 36 WAS M/L Inline Inspection

• NPS 42 Foothills Zone 9 Inline Inspection

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August System Maintenance

Latornell C/S

NPS 48 Edson M/L Lp # 3

Swartz Creek C/S

Nordegg C/S

NPS 42 GPML Lp #2

NPS 36 GPML Lp # 2

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NPS 48 EDSML Outage Aug 8th – 21st

Service Allowable:

• 0% IT-D/IT-S and 100% Firm Delivery Service

Lower EGAT Includes:

• Empress, McNeill and Unity Border

• Aeco C, Warwick SE, Chancellor, Carbon, Severn Creek,

Crossfield East # 2

• Segments 15, 16, 17, 18, 19, 20, 23, partial 21 and

partial 28

Lower Eastern Gate Delivery Area

Eastern Gate Delivery Area

S

S

S

SS

S

Eastern Gate Delivery Area (EGAT)

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Western Gate Delivery Area

Western Gate Delivery Area (WGAT)

NPS 48 EDSML Outage Aug 8th – 21st

Service Allowable:

• 0% IT-D/IT-S and 100% Firm Delivery Service

NPS 36 WAS M/L Outage Aug 10th – 19th

Service Allowable:

• 0% IT-D/IT-S and expected partial Firm Delivery

Service

WGAT Includes:

• Alberta-BC and Alberta-Montana interconnects

• Segment 22 and partial 21

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Upstream James River

Receipt Area

S S

S

NPS 48 EDSML Outage Aug 11th – 21st

Service Allowable:

• 0% IT-R/IT-S and expected partial Firm Receipt

Service

USJR* Area Definition:

Upstream of Vetchland and Upstream of Schrader

USJR* Area Includes:

• Gordondale and Groundbirch East Borders

• Big Eddy, January Creek, Rat Creek West

• Segments 2, 3, 4, 5, 6, 7, 24, 26, partial 8* and

partial 9*

Note: Excludes segment 1, includes more of segments 8

and 9

Upstream James River Receipt Area (USJR)

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Timeline of Events as of August 1, 2017

December 15, 2016 – Communicated via MOF (potential USJR FT-R)

• Scheduled dates of August 12th – 21st

February, 2017 – Highlighted at the Customer Ops meeting

July 1, 2017 - Added USJR Outage to STOP

• Redefined scheduled dates of August 11th – 21st

July 26, 2017 - Added EGAT & WGAT Outage to STOP

• Scheduled dates of August 7th – 21st

July 26, 2017 – NrG Highway Requesting Plant Turn Around Information

August 2, 2017 – IT service restriction timing was revised from Aug 7-21

to Aug 8-21.

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Short Term Operational Plan (STOP) as of Aug 1, 2017

42000 40000-50000

30000-3500031000

0% IT-D/IT-S/IT-R

0% IT-D/IT-S/

IT-R

0% IT-DIT-S

0% IT-R/IT-S 70-75% FT-R

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0% IT-R/IT-S 60-70% FT-R

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Outage Timeline

August 3, 2017 – NrG Highway Notice (EGAT/WGAT IT-D/IT-S, USJR IT-R/IT-S)

• Tuesday August 8, 2017 08:00 MST – 100% Firm

August 10, 2017 – NrG Highway Notice (USJR* FT-R)

• Friday August 11, 2017 17:00 MST– 70-75% FT-R• ATCO Hinton area 60-70% FT-R

August 12, 2017 - Scheduled maintenance to commence

Updates, if required, will be communicated via NrG Highway notices

August 21,2017 – Maintenance scheduled to be complete

* Expected Specific Area Definition: Partial FT Receipt Restriction in Segments 2, 3, 4, 5, 7, 24, 26, partial 8 and partial 9 (U/S Vetchland, U/S Schrader)

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Outage Timeline

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Summary

• Potential linepack target adjustment

• Supply-Demand tolerance level adjustment, if required

• USJR plant turn around information received to date (Thank you!)

• Expected receipt reduction of 5-10 e6m3/d

• EGAT & WGAT IT-D/IT-S, USJR IT-R/IT-S Restriction

• Occur prior to USJR FT-R allowable determination

• Expected USJR* FT-R Allowable: 70-75%

• Confirmation of Service Allowable and Area of Impact

via NrG Highway Notice - August 10, 2017

• ATCO Hinton area 60-70% FT-R

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Questions?

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