Slide 1: Products Pipelines
Products Pipelines Tom Bannigan – President
Slide 2: The Demographic Wave
The Demographic Wave Kinder Morgan has built a portfolio of refined products assets in the fastest growing demographic markets in the country Demand for refined products is driven in large measure by demographic and economic growth 2000 – 2030 Projected Population Growth Major Markets Served by Kind
Slide 3: Growing and Shifting U.S. Population
Growing and Shifting U.S. Population 13% 49% 48% 12% 16% 37% 40% 3
Slide 4: Expanding and Acquiring to Meet Market Demand
Expanding and Acquiring to Meet Market Demand Track record of expansions and tuck-in acquisitions since acquiring core assets Project Description In Service Cost ($MM) Pacific Tucson Terminal Expansion 1- 100MB tank, truck loading lane 1999 $3.0 Shell Terminal Acquisition 5 terminals 2003 $28.0 Miss
Slide 5: Arizona
Arizona Arizona is the 2nd fastest growing state in the country – 2.5% annual growth projected from 2000 – 2030 (a) Maricopa County (Phoenix) grew over 3% from 2004 to 2005 and led the country in largest numerical growth of population (112,000) (a) Adjacent Pinal County grew at 4.8% over the same pe
Slide 6: East Line Expansion
East Line Expansion Two projects currently under way to expand the El Paso to Phoenix/Tucson East Line East Line Expansion - $210 MM cost with completion date of 5/01/06 160 miles of looped 16” pipeline from El Paso to Tucson 66 miles of new 12” pipeline from Tucson to Phoenix Increases El Pas
Slide 7: East Line Expansion
East Line Expansion CURRENT 8" 12" / 8" / 12" / 8" / 12" PX TU 12" EP PHASE-1 EXPANSION 8" / 12" / 8" NEW 8" 12" PX TU 12" / 16" / 12" TANK 12" EP FARM PHASE-2 EXPANSION NEW 12" P/S 12" 16" TANK P/S PX TU 12" EP FARM 7
Slide 8: Nevada
Nevada Nevada is the fastest growing state in the country – 2.6% annual growth projected from 2000 – 2030(a) Las Vegas/Clark County had the fourth largest numerical increase in population from 2003 to 2004 (75,285) and is one of the 50 fastest growing counties (4.8% 2003 to 2004) in the country(a)
Slide 9: Calnev Expansion
Calnev Expansion Several projects to expand the Calnev pipeline system 2005 / 2006 - $11.8 MM in total approved projects Barstow, CA Debottlenecking – provides approximately 3% additional capacity on the 14” mainline Las Vegas Terminal Expansion Provide additional 160,000 Bbls of tankage for gasol
Slide 10: Florida – The Demographics
Florida – The Demographics Florida is the 3rd fastest growing state in the country – 2.0% annually projected from 2000 – 2030 (a) 14 of the 100 fastest growing counties in the U.S. are in Florida (a) 7 of the 14 counties are in the Central Florida market area (a) Growth anchored by Tampa (2.1% annua
Slide 11: Florida – The Market
Florida – The Market Florida is an 800,000 Bpd refined products market with no indigenous refining capacity. Central Florida is a 360,000 Bpd refined products market Volumes on the pipeline grew at an average annual rate of 3.7% from 2000 to 2005 Tampa terminal volumes grew at an average annual rate
Slide 12: Central Florida Expansion
Central Florida Expansion Project currently under way to expand CFPL and Tampa/Orlando terminal capacity $8.65 MM spent in 2005 and 2006 to expand the Central Florida System Expand the Tampa manifold which increases the capacity of the Central Florida Pipeline by 15% Build a new 120,000 Bbl tank
Slide 13: FERC Update
FERC Update December 16, 2005 FERC Order Addressed issues on remand of BP West Coast Products decision (OR92-8 cost of service issues) Applied FERC Policy Statement on Income Tax Allowance to SFPP case (OR92-8) Reviewed OR96-2 Phase 2 cost of service rulings of Administrative Law Judge Key Out
Slide 14: Financial
Financial REPARATIONS − Reserved $105MM based on current assessment of February 28 compliance filing 2006 REVENUES − Estimate lower East Line/West Line revenues of $15-20MM. − Estimate affected by Arizona volumes, mid-year index adjustment and regulatory filings upon completion of East Line expansio
Slide 15: What’s Next?
What’s Next? SFPP filed for rehearing of December 16 Commission decision on January 17, 2006 Several shippers have also filed petitions for rehearing; other shippers have appealed December 16 decision to DC Circuit Court of Appeals February 28 compliance filing will likely be challenged by shippers.
Slide 16: Kinder Morgan
KINDER’ MORGAN