2 natural gas pipelines

ENERGY PARTNERS, L.P.

Natural Gas PipelinesNatural Gas Pipelines

Steve KeanSteve Kean

President Natural Gas Pipeline GroupPresident Natural Gas Pipeline Group

22


OverviewOverviewValue PropositionValue Proposition

—— Strong asset base with secure cash flows supported by long term Strong asset base with secure cash flows supported by long term contracts and solid contracts and solid market fundamentalsmarket fundamentals

—— Limited exposure to commodity prices and processing marginsLimited exposure to commodity prices and processing margins

Keys to success in 2009Keys to success in 2009—— Delivering the large projects (REX, MEP and KMLA) consistent witDelivering the large projects (REX, MEP and KMLA) consistent with current forecast; h current forecast;

capturing the margin upsides on those projectscapturing the margin upsides on those projects

—— Executing on 09 plan assumptions on existing asset baseExecuting on 09 plan assumptions on existing asset base

—— Cost control (take advantage of improved cost environment in exiCost control (take advantage of improved cost environment in existing business)sting business)

SummarySummary—— Contract structureContract structure

—— 2009 budget overview2009 budget overview

—— PipelinePipeline--byby--Pipeline reviewPipeline review

—— Major Projects updateMajor Projects update

—— Growth opportunitiesGrowth opportunities

2

33


TransColorado

2

2KMTP

KMTejas

KMIGT

Trailblazer

2

KMLP

REX

REX

MEP

FEP

NATURAL GAS PIPELINES

NATURAL GAS STORAGE

NATURAL GAS PROCESSING

KM HEADQUARTERS

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

ROCKIES EXPRESS PIPELINE

KM LOUISIANA PIPELINE

ROCKIES EXPRESS PIPELINEIN-SERVICE

MIDCONTINENT EXPRESS PIPELINE

FAYETTEVILLE EXPRESS PIPELINE(KMP)

3

Natural Gas Pipelines and FacilitiesNatural Gas Pipelines and Facilities

44


Contracted Capacity and TermContracted Capacity and TermAvg. Term

Capacity RemainingTexas Intrastates Transport 3.3 bcf/d 7 yr, 4 mo

Sales 2.6 bcf/d 2 yr, 3 moPurchases 3.0 bcf/d 1 yr, 9 moStorage 138* bcf 3 yr, 5 mo

KMIGT Storage 10 bcf 4 yr, 8 moTransport 0.9 bcf/d 4 yr, 8 mo

TransColorado Transport 1 bcf/d 5 yr, 5 moTrailblazer Transport 0.9 bcf/d 5 yr, 10 moREX Transport 1.8 bcf/d 10 yr, 10 moMEP Transport 1.6 bcf/d 9 yr, 2 moKMLA Transport 3.4 bcf/d 20 yr, 0 mo

•• Interstate pipelines contracted on a fee for service basisInterstate pipelines contracted on a fee for service basis

•• Intrastates: primarily combination fee for service and Intrastates: primarily combination fee for service and ““back to backback to back”” term purchase term purchase and sales portfolioand sales portfolio

•• Limited exposure to processing margins and gas commodity priceLimited exposure to processing margins and gas commodity price

—— $1 gas price change: $5 MM total impact to 2009 KMP gas pipelin$1 gas price change: $5 MM total impact to 2009 KMP gas pipeline e dcfdcf

—— Processing: $10 Processing: $10 –– 15 MM exposure in 2009 on Intrastates if processing 15 MM exposure in 2009 on Intrastates if processing uneconomicuneconomic

__________________________*Includes contracted storage rights.

55


124,472 833,479 709,007 518,456 473,672 426,335 DCF

(5,015)(34,868)(29,853)(29,927)(27,431)(25,244)Sustaining Capex

129,487 868,347 738,860 548,383 501,103 451,579 EBDDA

'08 - '09Change20092008200720062005

Incremental DCF forecasted from KMLP, MEP, REX = $123mmIncremental DCF forecasted from KMLP, MEP, REX = $123mm

Texas Intrastates Budget includes margin improvements on transpoTexas Intrastates Budget includes margin improvements on transport, storage, and sales rt, storage, and sales to offset YOY processing declines.to offset YOY processing declines.

Opportunity: budget incorporates OPEX and sustaining capex increOpportunity: budget incorporates OPEX and sustaining capex increases. Will look for ases. Will look for opportunities to take advantage of improved cost environment in opportunities to take advantage of improved cost environment in 2009.2009.

Note: EBDDA excludes Upstream gathering assets, and includes iNote: EBDDA excludes Upstream gathering assets, and includes imputed share of DDA from REX and MEPmputed share of DDA from REX and MEP

Financial Targets 2009Financial Targets 2009(thousands)(thousands)

66


Asset SummariesAsset Summaries

77


6,000 miles of pipeline6,000 miles of pipelineover 5 Bcf/d capacityover 5 Bcf/d capacity138 Bcf on138 Bcf on--system storagesystem storage685 MMcf/d processing 685 MMcf/d processing

capacitycapacity180 MMcf/d CO2 treating 180 MMcf/d CO2 treating

capacitycapacityCombination of feeCombination of fee--forfor--service, service,

and purchase/sale activity.and purchase/sale activity.Texas Railroad Commission Texas Railroad Commission

regulated regulated -- -- marketmarket--based based regulation in competitive regulation in competitive environmentenvironment

Katy

Perryville

Carthage

Henry

Waha

Agua Dulce

Kinder Morgan Texas PipelineKMTP StorageKMTP Gas ProcessingKinder Morgan Tejas PipelineKMTejas StorageKMTejas Gas ProcessingNorth Texas PipelineMier-Monterrey PipelineHub

Texas Intrastate PipelinesTexas Intrastate Pipelines

88


Well positioned assetsWell positioned assets—— Built to serve Houston/Beaumont area Built to serve Houston/Beaumont area -- largest natural gas market in the worldlargest natural gas market in the world—— Connected to essentially all major gas consumers in the areaConnected to essentially all major gas consumers in the area—— Gas supply available from major basins across TexasGas supply available from major basins across Texas—— Connected to the major hubs in Texas, as well as all major intraConnected to the major hubs in Texas, as well as all major intrastate and interstate state and interstate

pipelinespipelines—— Significant connectivity with MexicoSignificant connectivity with Mexico

Operational flexibilityOperational flexibility—— Large diameter, high pressure pipes in the market areaLarge diameter, high pressure pipes in the market area—— Supported by salt dome storage facilities both north and south oSupported by salt dome storage facilities both north and south of the marketf the market

Commercial FocusCommercial Focus—— Provide higher valued swing services to a mix of power generatioProvide higher valued swing services to a mix of power generation, local distribution n, local distribution

and industrial marketsand industrial markets—— Bundle transport, storage and sales to enhance margins from end Bundle transport, storage and sales to enhance margins from end usersusers—— Buy or transport gas supplies to meet the needs of the producer Buy or transport gas supplies to meet the needs of the producer communitycommunity—— Optimize use of the system on a daily basis.Optimize use of the system on a daily basis.

Texas Intrastate PipelinesTexas Intrastate PipelinesKey AttributesKey Attributes

99


Texas Intrastate PipelinesTexas Intrastate PipelinesContinued GrowthContinued GrowthExpansion of Existing Assets:Expansion of Existing Assets: Recently Completed:Recently Completed:

—— Goodrich Pipeline, 64 miles of 24Goodrich Pipeline, 64 miles of 24”” out of East Texas, in service October 2008out of East Texas, in service October 2008

—— Markham Storage, 5Markham Storage, 5thth cavern, 7.5 Bcf working capacity, gas injection commenced in Macavern, 7.5 Bcf working capacity, gas injection commenced in May 2008 y 2008 and fully debrined in January 2009and fully debrined in January 2009

—— Hill Country Compression, 4,700 HP for 45 MMcfd West Texas to AuHill Country Compression, 4,700 HP for 45 MMcfd West Texas to Austin capacity, in service stin capacity, in service January 2009January 2009

Under Construction:Under Construction:

—— North Dayton Storage, 3rd cavern, 6.5 Bcf working capacity, expeNorth Dayton Storage, 3rd cavern, 6.5 Bcf working capacity, expected incted in--service Summer service Summer 20102010

—— Markham Storage, existing cavern, 0.5 Bcf working capacity, expeMarkham Storage, existing cavern, 0.5 Bcf working capacity, expected incted in--service Fall 2009service Fall 2009 Future Growth Projects:Future Growth Projects:

—— Looking at acquisitions of midstream and gathering assets in curLooking at acquisitions of midstream and gathering assets in current market environmentrent market environment

—— Various pipeline expansion projects: Katy, Goodrich, Beaumont, TVarious pipeline expansion projects: Katy, Goodrich, Beaumont, Texas City and Mexico exas City and Mexico imports/exports imports/exports

—— Connection to grassroots or repowered gas fired electric power pConnection to grassroots or repowered gas fired electric power plant projects near our lant projects near our assets (4 connected in 2008 or being connected; at least 5 otherassets (4 connected in 2008 or being connected; at least 5 other projects on the drawing projects on the drawing board for 2010/2011 in service)board for 2010/2011 in service)

Large asset footprint provides real and continued opportunities Large asset footprint provides real and continued opportunities for Expansion Capital Investmentfor Expansion Capital Investment

1010


Texas Intrastate PipelinesTexas Intrastate PipelinesModerate GrowthModerate Growth

Growth from Existing Assets:Growth from Existing Assets:

Higher premiums for ratable / swing services, endHigher premiums for ratable / swing services, end--user gas sales, and transportuser gas sales, and transport

—— Value of swing / storage services continues to increaseValue of swing / storage services continues to increase

—— Rollovers of sales contracts at higher margins providing year onRollovers of sales contracts at higher margins providing year on year growthyear growth

—— Improving transport marginsImproving transport margins

—— Several storage, sales and transport agreements increased in 200Several storage, sales and transport agreements increased in 2008 will have full year 8 will have full year benefit in 2009benefit in 2009

—— Risk to sales premiums and supply volumes if lower prices and ecRisk to sales premiums and supply volumes if lower prices and economic downturn is onomic downturn is extensiveextensive

Poor performance from processing, treating and conditioning relaPoor performance from processing, treating and conditioning relative to recent yearstive to recent years

—— Contracted processing spreads will yield lower processing marginContracted processing spreads will yield lower processing margin but structure of third but structure of third party processing contracts limit party processing contracts limit KMKM’’ss downside risk. downside risk.

—— Gas purchase and transport contracts have treating and conditionGas purchase and transport contracts have treating and conditioning provisionsing provisions

1111


Execute on all sales and purchase margin enhancement initiativesExecute on all sales and purchase margin enhancement initiatives Maintain field supply volumes at current levelsMaintain field supply volumes at current levels Favorable optimization spreads across the pipeline (Waha, Favorable optimization spreads across the pipeline (Waha, TxOkTxOk vsvs HSC)HSC) Execute and fill projectsExecute and fill projects Favorable storage spreadsFavorable storage spreads Continue to carefully manage credit (< $10K uncollectible over pContinue to carefully manage credit (< $10K uncollectible over past three years ast three years ––

revenues of $20 billion over that period)revenues of $20 billion over that period)

Keys to Success in 2009Keys to Success in 2009

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KMIGTKMIGT 4,500 miles of various 4,500 miles of various

diameter pipelinesdiameter pipelines Markets:Markets:

LDCs, Industrials, & Ag. LDCs, Industrials, & Ag. In NE, KS, & MOIn NE, KS, & MO

Marketers transporting to Marketers transporting to midmid--continent pipelinescontinent pipelines

End Users including End Users including Ethanol PlantsEthanol Plants

GrowthGrowth Colorado LateralColorado Lateral StorageStorage

Capacity Capacity Transp. 940 MDth/dTransp. 940 MDth/d Storage 10 BcfStorage 10 Bcf

FERC RegulatedFERC Regulated

Kinder Morgan Interstate Gas Transmission (KMIGT)Kinder Morgan Interstate Gas Transmission (KMIGT)

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KMIGTKMIGTMarketMarket

Valuable Valuable CapacityCapacity Fully contractedFully contracted Growth Growth

OpportunitiesOpportunities

CIG vs. Mid-Continent Basis Differential

-$0.20

$0.30

$0.80

$1.30

$1.80

$2.30

$2.80

$3.30

$3.80

$4.30

$4.80

$5.30

4/1/200

85/1/20086/1/

2008

7/1/200

88/1/20089/1/

2008

10/1/20

0811/1/

2008

12/1/200

81/1/

2009

2/1/20

093/1/

2009

4/1/20

095/1

/2009

6/1/20097/1

/2009

8/1/2009

9/1/2009

10/1/

200911/1/

2009

12/1/2009

1/1/20

102/1/20103/1

/20104/1/20105/1/20106/1/

2010

7/1/20108/1/20109/1/

2010

10/1/201

011/1

/2010

12/1/20

101/1/20112/1/

2011

3/1/20

114/1/201

15/1/

2011

6/1/20

117/1/201

18/1/

2011

9/1/20

1110/1

/2011

KMIGT total transport ~$0.76 summer, ~ $0.75 winter

KMIGT variable cost ~$0.1532 summer, ~$0.1442 winter

HistoricalFutures

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KMIGTKMIGTGrowth ProjectsGrowth Projects……

Completed Colorado Lateral to Greeley Colorado.Completed Colorado Lateral to Greeley Colorado. InIn--service November, 2008 service November, 2008 Demand charges being invoiced pursuant to a longDemand charges being invoiced pursuant to a long--term binding contract term binding contract

with ATMOSwith ATMOS Pursuing transportation opportunities to utilize additional systPursuing transportation opportunities to utilize additional system capacityem capacity

Completed System Expansion to Serve Four Ethanol Plants and an Completed System Expansion to Serve Four Ethanol Plants and an industrial user industrial user InIn--service October, 2008service October, 2008 Demand charges being invoiced pursuant to longDemand charges being invoiced pursuant to long--term binding contracts term binding contracts

Huntsman Storage OpportunityHuntsman Storage Opportunity 10,000 Dth/d incremental firm storage service10,000 Dth/d incremental firm storage service 1.0 1.0 --1.2 Bcf cushion gas sale1.2 Bcf cushion gas sale Finalizing facility design and rate requirementFinalizing facility design and rate requirement

1515


TransColoradoTransColorado 301 miles of 22301 miles of 22”” & 24& 24”” pipelinepipeline Originates at Greasewood COOriginates at Greasewood CO Terminates at Blanco, NMTerminates at Blanco, NM Bidirectional FlowBidirectional Flow

Capacity North Capacity North -- 650 MDth/d650 MDth/d Capacity South Capacity South

Phase I Phase I -- 150 MDth/d150 MDth/d Phase II Phase II -- 425 MDth/d425 MDth/d


TransColorado Gas TransmissionTransColorado Gas Transmission

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Valuable CapacityValuable CapacityFully contractedFully contractedGrowth OpportunitiesGrowth Opportunities

NW-Rockies vs. El Paso San Juan Basis Differential

-$0.20

$0.30

$0.80

$1.30

$1.80

$2.30

$2.80

$3.30

$3.80

$4.30

$4.80

$5.30

4/1/20085/1/20086/1/20087/1/20088/1/20089/1/200810/1/

200811/1/

200812/1/

20081/1/20092/1/20093/1/20094/1/20095/1/20096/1/20097/1/20098/1/20099/1/200910/1/

200911/1/

200912/1/

20091/1/20102/1/20103/1/20104/1/20105/1/20106/1/20107/1/20108/1/20109/1/201010/1/

201011/1/

201012/1/

20101/1/20112/1/20113/1/20114/1/20115/1/20116/1/20117/1/20118/1/20119/1/201110/1/

2011

TC total transport cost ~$0.3831 summer, ~$0.3659 winter

TC variable cost ~$0.0491 summer,~$0.0483 winter

Historical Futures

TransColoradoTransColoradoMarketMarket

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TransColoradoTransColoradoGrowth ProjectsGrowth Projects……

Compression expansion for southbound capacity from Meeker to BlaCompression expansion for southbound capacity from Meeker to Blanconco CapacityCapacity

47,000 Dth/d April 47,000 Dth/d April -- SeptemberSeptember 55,000 Dth/d October 55,000 Dth/d October -- MarchMarch

10,190 Hp installed in existing compressor stations10,190 Hp installed in existing compressor stations Capital investment well supported by 2009 Capital investment well supported by 2009 –– 2013 spreads.2013 spreads. Q4 2010 target inQ4 2010 target in--service dateservice date Open Season requiredOpen Season required Producer development drivenProducer development driven

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Trailblazer Pipeline CompanyTrailblazer Pipeline Company

Cheyenne Hub

Denver

Lincoln

ColoradoSprings

Cheyenne

NebraskaNebraska

KansasKansasColoradoColorado

WyomingWyoming

HuntsmanStorage

601 602603

104

194

105

195

106

TrailblazerTrailblazer

436 Miles of Pipe436 Miles of Pipe

3 Compressor Locations with 3 Compressor Locations with 58,000 HP58,000 HP

Max Throughput = 0.878 Max Throughput = 0.878 Bcf/dBcf/d

Low cost pipeline out of Low cost pipeline out of regionregion

Long term contractsLong term contracts


Trailblazer PipelineNGPLKMIGT

1919


Major Projects UpdateMajor Projects Update

In service in 09 for REX East, MEP, KM LouisianaIn service in 09 for REX East, MEP, KM LouisianaFinding value added opportunitiesFinding value added opportunities

-- Capacity is valuableCapacity is valuable-- Putting higher recourse rates into effectPutting higher recourse rates into effect-- Finding additional capacity and servicesFinding additional capacity and services

Still subject to price and schedule change Still subject to price and schedule change ---- but within but within narrower rangenarrower range

2020


Some softening of demand in 2009; opening up further in 2010

Beginning to see interest in unit pricing even on large diameter projects

Contractors

Increasing inventory; shorter lead times

Should see declines in 2009Large Valves

Some slots opening; expect continued improvement in 2009

StableCompression

Should see improvement later in 2009

Down about 30% since last summer ≈ 1500/ton

Large Diameter PipeLead Time/AvailabilityPricing IndicationsProduct/Service

Rapidly improving cost environment for future projects.Rapidly improving cost environment for future projects.

Still havenStill haven’’t seen t seen ““capitulationcapitulation”” –– vendors clinging to their inventory cost vendors clinging to their inventory cost –– so there may be so there may be further improvement.further improvement.

Project Cost Environment Project Cost Environment Outlook for future projectsOutlook for future projects

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Rockies Express Pipeline-In-service

Rockies Express Pipeline-REX-East

Lease of Overthrust Pipeline Capacity

Natural Gas Pipeline Company of America

Kinder Morgan Interstate Gas Transmission

TransColorado Gas Transmission

Trailblazer Pipeline

REX Compressor Station

REX-East Compressor Station

Hub

OpalKanda Wamsutter

GreasewoodMeeker

Blanco

Cheyenne Lebanon

Clarington

OVER-THRUST

CAPACITYLEASE

R O C K I E S E X P R E S S P I P E L I N E

REX-EASTREX-WEST (IN-SERVICE)

Full In-Service 1,800,000 Dth/d – Nov 20091,500 MDth/d – Interim: 01/08 / Full: 05/08 1,600 MDth/d – Interim: 04/09 / Full: 06/09

PIPELINE – 1,679 MILES COMPRESSION – 460,000 Hp

Rockies Express Pipeline (REX)Rockies Express Pipeline (REX)

2222


REX WestREX West Commenced service in January, 2008Commenced service in January, 2008 Commenced full inCommenced full in--service May 20, 2008 service May 20, 2008 -- 1.5 Bcf/d of capacity1.5 Bcf/d of capacity

REX East REX East –– Currently under construction, to be phased into service:Currently under construction, to be phased into service: April April ’’09: 09: ““Interim ServiceInterim Service”” ---- Triggers shipper demand charge Triggers shipper demand charge

paymentspayments June June ’’09: Service to Lebanon, Ohio 09: Service to Lebanon, Ohio ---- Major industry hubMajor industry hub November November ’’09: Service to Clarington, Ohio 09: Service to Clarington, Ohio ---- 1.8 Bcf/d capacity1.8 Bcf/d capacity

REX Pipeline capacity is sold out under long term binding REX Pipeline capacity is sold out under long term binding commitmentscommitments

Total Projected Cost (Entrega & REX) = $6.3 Billion (including Total Projected Cost (Entrega & REX) = $6.3 Billion (including expansion)expansion) As of InAs of In--service of the pipeline ownership will be: Kinder Morgan 50%, service of the pipeline ownership will be: Kinder Morgan 50%,

Sempra Pipelines & Storage 25% and Conoco 25%Sempra Pipelines & Storage 25% and Conoco 25%

REXREXProject OverviewProject Overview

2323


Construction RisksConstruction Risks Winter construction Winter construction HDDHDD’’ss Increasingly difficult terrain moving eastwardIncreasingly difficult terrain moving eastward Time and material structure (financial risk)Time and material structure (financial risk)

Regulatory IssuesRegulatory Issues Final Major Permit: Water Quality Permit from the Ohio EPAFinal Major Permit: Water Quality Permit from the Ohio EPA FERC Notices to Proceed East of LebanonFERC Notices to Proceed East of Lebanon Resolution of Murray Mining conditionResolution of Murray Mining condition .8 design approval from PHMSA.8 design approval from PHMSA

REX West REX West -- Secure remaining approvals (Julesburg to Bertrand complete). Secure remaining approvals (Julesburg to Bertrand complete). Final inspections being completed. Final inspections being completed.

REX East REX East -- Seeking approval as service commencesSeeking approval as service commences

Claims resolution Claims resolution –– contractors and vendorscontractors and vendors

REXREXRemaining ChallengesRemaining Challenges

2424


REXREXFuture OpportunitiesFuture Opportunities……

Significant additional growth potential via other opportunitiesSignificant additional growth potential via other opportunities……

200,000 Dth/d Meeker to Cheyenne Expansion200,000 Dth/d Meeker to Cheyenne Expansion

Fully SubscribedFully Subscribed

Anticipated InAnticipated In--service April 2010service April 2010

Storage and Park and Loan ServiceStorage and Park and Loan Service

Development and sale of storage off the pipelineDevelopment and sale of storage off the pipeline

Interruptible and short haul serviceInterruptible and short haul service

Hub service at various key locationsHub service at various key locations

Extensions and expansions off the projectExtensions and expansions off the project

Continue to look at opportunities to extend the pipeline furtherContinue to look at opportunities to extend the pipeline further easteast

Opportunities to connect additional markets Opportunities to connect additional markets

Additional capacity opportunities identified during operationsAdditional capacity opportunities identified during operations

Higher recourse rates to reflect higher project costsHigher recourse rates to reflect higher project costs

2525


Midcontinent Express Pipeline (MEP)Midcontinent Express Pipeline (MEP)

25

EnogexEnogexWestWest EnogexEnogex

EastEast

WaynokaWaynokaPlantPlant

Initial Design Project Facilities Summary

Diameter Miles Zone Capacity From - To30” 40 1 865,000 Enogex to 80242” 266 1 1,432,500 802 to End of Zone 136” 201 2 1,000,000 Begin Zone 2 to TranscoTotal 507

2626


Mainline ConstructionMainline Construction To Delhi (Phase I)To Delhi (Phase I)

Construction has begun on all 7 spreads, compressors and Construction has begun on all 7 spreads, compressors and meter stationsmeter stations

Projected interim service is forecasted to begin on April 1, 200Projected interim service is forecasted to begin on April 1, 20099

To Transco 85 (Phase II)To Transco 85 (Phase II)

March 1 construction startMarch 1 construction start

Projected full inProjected full in--service is anticipated to begin August 1, 2009service is anticipated to begin August 1, 2009

MEPMEPConstruction ProgressConstruction Progress

2727


MEPMEPChallenges and OpportunitiesChallenges and Opportunities

ChallengesChallenges

Keeping contractors on all Spreads and at all compressor stationKeeping contractors on all Spreads and at all compressor stations on s on scheduleschedule

Weather Weather –– normal winter rains are reducing work days at compressor normal winter rains are reducing work days at compressor stations and pipeline Spreadsstations and pipeline Spreads

Material DeliveriesMaterial Deliveries

OpportunitiesOpportunities

Higher recourse rates to reflect higher project costs; valuable Higher recourse rates to reflect higher project costs; valuable capacitycapacity

Will look for capacity additions once we have actual operating Will look for capacity additions once we have actual operating experienceexperience

2828


Kinder Morgan Louisiana PipelineKinder Morgan Louisiana Pipeline

2929


Working with existing shippers on sharing benefits of Working with existing shippers on sharing benefits of valuevalue--added services with limited capital investment. added services with limited capital investment. (flexible service, IT, market to shippers with nearby (flexible service, IT, market to shippers with nearby storage)storage)

Multiple interconnections Multiple interconnections –– with additional facilities with additional facilities may be able to capture opportunities between major may be able to capture opportunities between major interstate pipelines.interstate pipelines.

Potential interconnections with other LNG terminals.Potential interconnections with other LNG terminals.

Kinder Morgan Louisiana PipelineKinder Morgan Louisiana PipelineOpportunitiesOpportunities

3030


Fayetteville Express Pipeline (FEP)Fayetteville Express Pipeline (FEP)

Pipeline Length: 185 milesPipe Diameter: 42”Initial Capacity: 2.0 Bcf/d

30

3131


FEPFEPCommercial StatusCommercial Status

Total of 1.85 Total of 1.85 bcfbcf/day capacity sold. Have 0.15 /day capacity sold. Have 0.15 bcfbcf/day /day available for sale.available for sale.

Producers are finalizing drilling plans. Expect to sell the Producers are finalizing drilling plans. Expect to sell the remaining capacity prior to inremaining capacity prior to in--service.service.

Shippers Precedent Agreements Executed:Shippers Precedent Agreements Executed: Southwestern: 1,200,000 Dth/d, 10 yrs (capacity ramps up)Southwestern: 1,200,000 Dth/d, 10 yrs (capacity ramps up) Chesapeake: 375,000 Dth/d for 10 yrs Chesapeake: 375,000 Dth/d for 10 yrs BP: 125,000 Dth/d for 10 yrsBP: 125,000 Dth/d for 10 yrs XTO: 150,000 Dth/d 12 yrs, (capacity ramps up)XTO: 150,000 Dth/d 12 yrs, (capacity ramps up)

3232


Growth OpportunitiesGrowth Opportunities

Extensions off of expanded footprintExtensions off of expanded footprint-- REX REX -- Northeast and/or Chicago marketsNortheast and/or Chicago markets-- MEP MEP -- take away needs from Transco Sta. 85take away needs from Transco Sta. 85-- StorageStorage-- Existing networkExisting network

Future shale opportunitiesFuture shale opportunities-- Mainline transmissionMainline transmission-- GatheringGathering

AcquisitionsAcquisitions

2 natural gas pipelines

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