6-5-14 curtis cole - presentation

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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

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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.

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Page 1: 6-5-14 Curtis Cole - Presentation

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

Page 2: 6-5-14 Curtis Cole - Presentation

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

Page 3: 6-5-14 Curtis Cole - Presentation

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

Page 4: 6-5-14 Curtis Cole - Presentation

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

Page 5: 6-5-14 Curtis Cole - Presentation

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

Page 6: 6-5-14 Curtis Cole - Presentation

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)

Page 7: 6-5-14 Curtis Cole - Presentation

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

Page 8: 6-5-14 Curtis Cole - Presentation

Northeast Energy Direct Project (Full Path)

8 One Solution, Customized Flexibility

Page 9: 6-5-14 Curtis Cole - Presentation

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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

Page 10: 6-5-14 Curtis Cole - Presentation

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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

Page 11: 6-5-14 Curtis Cole - Presentation

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

Page 12: 6-5-14 Curtis Cole - Presentation

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

Page 13: 6-5-14 Curtis Cole - Presentation

• 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

Page 14: 6-5-14 Curtis Cole - Presentation

• 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

Page 15: 6-5-14 Curtis Cole - Presentation

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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

Page 16: 6-5-14 Curtis Cole - Presentation

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• 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

Page 17: 6-5-14 Curtis Cole - Presentation

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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

Page 18: 6-5-14 Curtis Cole - Presentation

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Contacts

Curtis Cole

Director, Business Development

[email protected]

713-420-3373

Norman (Dodson) Skipworth

Manager – Marketing

[email protected]

713-420-2727