Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Northeast Energy Summit 2014
20 slides from Kinder Morgan's conference presentation, Sep 17, 2014
Slide 1: Northeast Energy Direct (NED) Project Update
Tennessee Gas Pipeline Co, L.L.C. Northeast Energy Direct (NED) Project Project Update Northeast Energy Summit September 17, 2014 Curtis Cole
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
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 fut
Slide 3: Kinder Morgan: North American Assets
Kinder Morgan: North American Assets 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 Bc
Slide 4: TGP System Overview
TGP System Overview System Overview Market Area Supply Trends 13,900 Miles Pipe Facilities 79 Bcf Storage ~8.0 Bcf/d Capacity 1.4 Million Horsepower > 500 FT Customers Supply & Market Rich Overall Annual Throughput 4
Slide 5: Northeast Production: Marcellus and Utica
Northeast Production Marcellus and Utica UTICA UTICA MARCELLUS Marcellus Area Production Utica Area Production Production continues to grow Production in initial stages ~ 22 Bcf/d Dry Gas by 2020 ~ 4.0 Bcf/d by 2020 TGP largest Marcellus transporter to date TGP well positioned ~ 2.5 Bc
Slide 6: New England / Northeast Trends
New England / Northeast Trends New England’s Gas Burn: • ~ 52%: Gas-fired electricity generated 2013 (Source: ISO-NE) • ~ 95%: TGP average Z6 winter load factor • Various IT services curtailed most days Supply Sources • In 2012, the Northeast region received 60% of its gas supply from Eastern US sou
Slide 7: Pipeline Expansion - Pricing Impact
Pipeline Expansion - Pricing Impact Extreme Peaks Historical Pricing $25.0000 • New England and New York traded at parity 2013 Expansions to November 2013 NY/NJ expansions in-service NY/NJ, not NE • New York basis significantly reduced $20.0000 • TGP’s NEUP Project * - Impact of NE • Spectra’s NJ-NY
Slide 8: TGP's Recent Development
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
Slide 9: Northeast Energy Direct Project – Full Path
Northeast Energy Direct Project – Full Path Transformative NED Project links Large Volume, High Pressure, and Prolific Marcellus supplies to New England * Any final route determination is subject to surveying, land acquisition and easements, environmental impact assessments, permitting and stakehold
Slide 10: Northeast Energy Direct Project – Supply Path
Northeast Energy Direct Project – Supply Path Project Details In-Service: November 2018 Scalable Volume: 0.6 – 1.0 Bcf/d Provides incremental, direct access to Northeast supply ~135 miles of greenfield 30” pipe 1440 psig ~32 miles of 36” looping (TGP 300 Line) Three new C/S including b
Slide 11: Northeast Energy Direct Project – Market Path
Northeast Energy Direct Project – Market Path Project Details In-Service: November 2018 Scalable Volume: 0.8 – 2.2 Bcf/d ~177 miles new and co-located pipe ~73 miles of market delivery laterals 0.8 Bcf/d scalable to 2.2 Bcf/d Market Reach MA, CT, RI, NH, NY directly M&NP & PNGTS U.S. m
Slide 12: Northeast Energy Crisis
Northeast Energy Crisis The energy situation is likely to worsen if no new capacity is constructed; • Currently, four large New England coal, oil and nuclear power plants are planning to retire in the next few years due to increasing operating costs and new emissions standards. This includes the Bra
Slide 13: Northeast Energy Crisis
Northeast Energy Crisis 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)
Slide 14: Northeast Energy Crisis: Letter from Senate Delegation
Northeast Energy Crisis LETTER FROM THE NEW ENGLAND U.S. SENATE DELEGATION TO DEPARTMENT OF ENERGY SECRETARY MONIZ – December 13, 2013 “ According to the Federal Energy Regulatory Commission (FERC), the New England market is particularly at risk for service disruption due to limited pipeline capacit
Slide 15: Governors' Statement on Northeast Energy Infrastructure
Governors’ Statement on Northeast Energy Infrastructure • 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 reliabl
Slide 16: NED – Market Benefits
NED – Market Benefits • 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 rel
Slide 17: KM Announces Initial Anchor Shippers
KM Announces Initial Anchor Shippers On July 30, 2014, Kinder Morgan announced it had reached agreement with key local natural gas distribution companies (“LDCs”) throughout New England to transport approximately 500,000 Dth/d of long-term firm transportation on the Northeast Energy Direct Project r
Slide 18: Northeast Energy Direct Project Overview
Northeast Energy Direct Project Overview New England region as a whole stands to benefit from the Estimated Project Schedule proposed NED Project as it will enable New England to sustain its electric grid, reduce emissions, and lower Action Timing energy costs to compete on a more level economic p
Slide 19: Project Presentations to Date
Project Presentations to Date • April 7, 2014 : Montague (MA) Board of Selectmen • July 15, 2014: Lunenburg (MA) Board of Selectmen • April 8, 2014: Dracut (MA) Board of Selectmen • July 22, 2014: Royalston (MA) Board of Selectmen • April 9, 2014: Ashburnham (MA) Board of Selectmen • July 23, 2014:
Slide 20: Contacts
Contacts Curtis Cole Coralie Sculley Director, Business Development Account Director – Marketing Curtis_Cole@kindermorgan.com Coralie_Sculley@kindermorgan.com 713-420-3373 (office) 713-420-6336 (office) 832-217-5161 (cell) 713-818-0411 (cell) 4