6-5-14 curtis cole - presentation
DESCRIPTION
Curtis Cole's Presentation - uploaded separately from the Master presentation.This EBC program will provide an overview of developing efforts to bring new long distance transmission lines from Canada and northern New England to supply new renewable electricity to southern New England.TRANSCRIPT
Tennessee Gas Pipeline Co, L.L.C.
Northeast Energy Direct (NED) Project
EBC Energy Program
Large Hydro and Wind Electricity and Increased Natural Gas Transmission into New England
June 5, 2014
Curtis Cole
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. Please read "Risk Factors" and "Information Regarding
Forward-Looking Statements" in our most recent Annual Reports on Form 10-K and our subsequently filed Exchange Act reports, which are available
through the SEC’s EDGAR system at www.sec.gov and on our website at www.kindermorgan.com.
We use non-generally accepted accounting principles (“non-GAAP”) financial measures in this presentation. Our reconciliation of non-GAAP financial
measures to comparable GAAP measures can be found in the appendix to this presentation and on our website at www.kindermorgan.com. These
non-GAAP measures should not be considered an alternative to GAAP financial measures.
2
Kinder Morgan: North American Assets
3
4th largest energy company in North
America with combined enterprise
value of approximately $105 billion
Largest natural gas network in U.S.
— Own an interest in / operate
approximately 68,000 miles of natural
gas pipeline, and 643 Bcf of storage,
incl. 18 Bcf of LNG storage
— Connected to every important U.S.
natural gas basin, including: Eagle
Ford, Marcellus, Utica, Uinta,
Haynesville, Fayetteville, Barnett
Largest independent transporter of
petroleum products in U.S.
— Transport ~2.3 MMBbl/d (b)
Largest transporter of CO2 in U.S.
— Transport ~1.3 Bcf/d of CO2 (b)
Largest independent terminal operator
in U.S.
— ~180 liquids / dry bulk terminals
— ~112 MMBbls dom. liquids capacity
— ~103 MMtons of dry bulk products
Only Oilsands pipe serving West
Coast
— TMPL transports ~300 MBbl/d to
Vancouver / Washington State;
expansion under way increasing
capacity to 890 MBbl/d
TGP System: Supply / Market Growth
Increasing Market Area Supply
Increasing Annual Throughput
4
System Overview 13,900 miles of pipeline
79 Bcf of storage capacity
~8.0 Bcf/d – design capacity
1.4 million horsepower
>500 FT customers
35 MM households equivalent
Abundant & Growing Supply
— Marcellus, Utica, Eagle Ford, Haynesville, Fayetteville
Northeast Production Marcellus and Utica
MARCELLUS
UTICA
UTICA
Utica Area Production
Production in initial stages
~ 4.0 Bcf/d by 2020
TGP well positioned
~0.15 Bcf/d current flow
~0.3 Bcf/d EOY 2013
Marcellus Area Production
Production continues to grow
~ 22 Bcf/d Dry Gas by 2020
TGP largest Marcellus transporter to date
~ 2.5 Bcf/d – Avg 2012 / 2013
~ 3.6 Bcf/d – Winter ’13/14
~ 4.0 Bcf/d – Winter ’14/15 (est)
5 Source: U. S. Capital Advisors
Current Structure of New England Natural Gas
New England’s Gas Needs:
• In 2013, New England relied on natural gas
for 52% of its electricity produced, more
than any other source. (Source: ISO-NE)
Sources of New England’s Gas Supply:
• In 2012, the Northeast region received 60%
of its gas supply from Eastern US sources,
mainly shale formations. (Source: Navigant North
American Natural Gas Market Outlook, Spring 2013)
• It is estimated that by 2022, based on
current trends and source supply that the
Northeast will receive 92% of ifs gas supply
from Eastern US sources. (Source: Navigant
North American Natural Gas Market Outlook, Spring 2013)
TGP’s Recent Development
Project Dth/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 In-service
NE Upgrade 636,000 Chesapeake, Statoil Nov 1, 2013 In Service
Utica Backhaul 500,000 Various Producers April 1, 2014 In-Service
Rose Lake 230,000 South Jersey Res., Statoil Nov 1, 2014 Under Construction
Uniondale 34,000 UGI Resources Nov 1, 2014 Under Construction
CT Expansion 72,100 Yankee, Southern Ct,
Connecticut Natural
Nov 1, 2016 P.A.s executed, FERC Filing Prep
Broad Run Projects 790,000 Antero Resources Nov 1, 2017 P.A.s executed, FERC Filing Prep
SW Louisiana Supply 900,000 Mitsubishi, MMGS Nov, 2017 P.A.s executed, FERC Filing Prep
NED - Market 1.2 – 2.2B In Active Development Nov 1, 2018 In Active Development
NED – Supply 0.8 – 1.0B In Active Development Nov 1, 2018 In Active Development
7
Proven Track Record
Northeast Energy Direct Project (Full Path)
8 One Solution, Customized Flexibility
9
Northeast Energy Direct Project - Supply
Project Details
In-Service Date: November 2018
Scalable Volume: 0.8 – 1.0 Bcf/d
~117 miles of greenfield 30” pipe
Up to 50 miles of 36” looping (TGP
300 Line)
Sufficient compression for
subscribed capacity
Direct access to:
TGP’s existing regional
network,
TGP’s Northeast Enerfy
Direct – Market, and
Iroquois Gas Transmission
The TGP Advantage
Provides increased liquidity at
Wright, NY
Provides incremental, low-priced,
and abundant Marcellus supply to New England LDCs
New York and Connecticut
LDCs via Iroquois
Power customers
Atlantic Canada markets
Proven on time project execution
Route previously reviewed
10
Northeast Energy Direct Project - Market
Project Details
~179 miles pipe + laterals
~ 47% existing ROW / corridors
0.6 Bcf/d scalable to 2.2 Bcf/d
Market Reach
LDC’s & Industrial: MA, CT, RI,
NH directly
M&NP & PNGTS U.S. market
Future Power Generation
Direct & indirect
Pending NESCOE/FERC action
to allow cost recovery
Atlantic Canadian markets
CNG/LNG Portable Pipeline
Market Benefits
Liberates Market Bottlenecks
Supply Optionality @ Wright, NY
TGP 200 Line, IGT,
Constitution, NED - Supply
Reduces the basis and volatility;
lowers energy costs
Benefits existing TGP operations
Regional economic benefits
Provides long-term market solution; Large volume,
reliable regional supplies and stable gas costs
Unprecedented gas capacity constraints on existing pipelines (Source: ISO-NE, EIA.gov)
Highest and most volatile gas commodity costs in the nation (Source: ISO-NE, EIA.gov)
Northeast Energy Crisis
According to the Federal Energy
Regulatory Commission (FERC), the New
England market is particularly at risk for
service disruption due to limited pipeline
capacity into the region. This not only
threatens reliability but also results in
more volatile natural gas and power prices
during periods of high demand.”
Energy infrastructure in the region is
simply inadequate to meet demand and
has been a key factor in the energy price
volatility.”
LETTER FROM THE NEW ENGLAND U.S. SENATE
DELEGATION TO DEPARTMENT OF ENERGY
SECRETARY MONIZ – December 13, 2013
“
“
Northeast Energy Crisis
• In Dec. 2013, New England Governors
called attention to the shortage of energy
infrastructure.
• An open letter was signed by Governors
Malloy (CT), LePage (ME), Patrick (MA),
Hassan (NH), Chafee (RI), and Shumlin
(VT).
• “To ensure a reliable, affordable and
diverse energy system, we need
investments in additional energy
efficiency, renewable generation,
natural gas pipelines, and electric
transmission.”
• “These investments will provide
affordable, clean, and reliable energy
to power our homes and businesses;
make our region more competitive by
reducing energy costs; attract more
investment to the region; and protect our
quality of life and environment.”
Governors’ Statement on
Northeast Energy Infrastructure
• An estimated additional $25M to local taxing
bodies in MA, $9M in NY, $2.4M in CT and
$1.1M in NH
• Estimated creation of 3,000 construction-
related jobs
• Economic stimulus to surrounding areas
during construction (retail, hospitality, etc.)
• Providing long-term energy reliability to the
region
• Creates potential new source of energy for
communities
NED – Market Benefits
4
Project Briefings: • Governor Deval Patrick
• Office of U.S. Senator
Elizabeth Warren
• Office of U.S. Senator
Ed Markey
• Office of Congressman
Jim McGovern
• Office of Congressman
John Tierney
• Office of
Congresswoman Niki
Tsongas
• Office of Congressman
Richard Neal
• Office of Congressman
Joe Kennedy
• Office of
Congresswoman
Katherine Clark
• Senator Benjamin
Downing
• State Senate Majority
Leader Stan Rosenberg
• Senator Stephen Brewer
• Senator Barry Finegold
• Senator Eileen
Donoghue
• Senator Hariette
Chandler
• Senator Jennifer
Flanagan
• State House Speaker
Robert DeLeo
• State Representative
Stephen Kulik
• State Representative
William Pignatelli
• State Representative
Tricia Farley-Bouvier
• State House Minority
Leader Bradley Jones
• State Representative
Stephen DiNatale
• State Representative
Colleen Garry
• State Representative
Anne Gobi
• Office of Senator Bruce
Tarr
• Office of Senator
Michael Moore
• Department of Public
Utilities
• Office of Energy and
Environmental Affairs
• Department of Fish and
Game
• Coastal Zone
Management
• Department of
Agricultural Resources
• Department of Energy
Resources
• Department of
Environmental
Protection
Town Contacts:
• Dalton
• Hinsdale
• Lenox
• Peru
• Pittsfield
• Richmond
• Washington
• Windsor
• Andover
• Lynnfield
• Methuen
• Ashfield
• Conway
• Deerfield
• Erving
• Greenfield
• Montague
• Northfield
• Orange
• Shelburne
• Warwick
• Plainfield
• Ashby
• Dracut
• Dunstable
• Groton
• North Reading
• Pepperell
• Tewksbury
• Townsend
• Tyngsborough
• Wilmington
• Ashburnham
• Athol
• Berlin
• Bolton
• Boylston
• Gardner
• Lunenburg
• Northborough
• Royalston
• Shrewsbury
• Winchendon
• Worcester
Massachusetts Outreach
16
• April 7th, 2014 : Montague (MA) Board of Selectmen
• April 8th, 2014: Dracut (MA) Board of Selectmen
• April 9th, 2014: Ashburnham (MA) Board of Selectmen
• April 21st, 2014: Hollis (NH) Public Meeting
• April 22nd, 2014: Plainfield (MA) Board of Selectmen
• April 23rd, 2014: Ashby (MA) Board of Selectmen
• May 12th, 2014: Pepperell (MA) Board of Selectmen
• May 13th, 2014: Warwick (MA) Public Meeting
• May 14th, 2014: Tyngsborough (MA) Board of Selectmen
Project Presentations to Date
4
Project Outreach:
• Governor Maggie Hassan
• Pam Walsh, Chief of Staff to Governor Hassan
• Office of U.S. Senator Jeanne Shaheen
• Office of U.S. Senator Kelly Ayotte
• Office of Congresswoman Ann McLane Kuster
• State Senate President Chuck Morse
• State Senate Minority Leader Sylvia Larson
• Senator Peg Gilmour
• Senator Bette Lasky
• Senator David Watters
• Senator Bob Odell
• House Science,Technology and Energy Committee
• Public Utilities Commission
• Office of Energy and Planning
• New Hampshire Business and Industry Association
Town Contacts:
• Hollis, NH
• Merrimack, NH
• Salem, NH
Kinder Morgan recently presented at a public meeting in Hollis, NH.
New Hampshire Outreach
4
Contacts
Curtis Cole
Director, Business Development
713-420-3373
Norman (Dodson) Skipworth
Manager – Marketing
713-420-2727