Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan 2015 Analyst Conference
54 slides from Kinder Morgan's conference presentation, Jan 28, 2015
Slide 1: Natural Gas Pipelines
Natural Gas Pipelines Tom Martin President, Natural Gas Pipeline Group
Slide 2: Natural Gas Segment
Natural Gas Segment Growth Drivers: Shale-driven expansions / extensions LNG exports — Liquefaction facilities — Pipeline infrastructure Gas demand for power generation — Coal plant retirements — Regional demand growth Industrial demand growth Exports to Mexico Repurposing opportunities
Slide 3: Contracted Capacity and Term by Region
Contracted Capacity and Term by Region Contracted Average Term Region Capacity Remaining Storage 132 Bcf 3 yr, 4 mo East Transport 18.9 Bcf/d 8 yr, 7 mo LNG 18 Bcf 17 yr, 5 mo Interstate Storage 46 Bcf 5 yr, 11 mo Transport Contracts West Transport 18.4 Bcf/d 5 yr, 8 mo Avg. = 6 yr, 8 mo Storage 255
Slide 4: Projects Placed Into Service - 2014
Projects Placed Into Service - 2014 4
Slide 5: New Firm Transport Capacity
New Firm Transport Capacity 5
Slide 6: Natural Gas Segment in a Low Oil Price Environment
Natural Gas Segment in a Low Oil Price Environment Risk Assessment Opportunity Assessment Price sensitivity mainly in Midstream Acquisition opportunities — $0.10/Dth gas price change — Lower oil price environment expected to • $2.8 MM/yr (excluding hedges) lead to greater acquisition opportuniti
Slide 7: Gas Pipeline Group Project Backlog
Gas Pipeline Group Project Backlog Approximate $1.9 billion increase from 2014 7
Slide 8: Region Asset Reviews
KINDERMORGAN Region Asset Reviews
Slide 9: East Region Assets
East Region Assets Growth Drivers: Asset footprint provides a base for serving growing and supply-constrained markets from both traditional and developing supply regions TGP uniquely positioned in growing Marcellus and Utica shale plays to provide region-wide access to both Gulf Coast and Northe
Slide 10: East Region Project Backlog
East Region Project Backlog 10
Slide 11: TGP - Broad Run Flexibility and Expansion
TGP - Broad Run Flexibility and Expansion Capacity: 790 MDth/d Capital: $751.0 MM Estimated In-service: 11/2015 and 11/2017 Project Scope: — Piping/compression modifications to 7 existing stations — Horsepower at 3 greenfield stations Commercial Benefit: Moves gas north- to-south from a re
Slide 12: TGP - Susquehanna West
TGP - Susquehanna West Capacity: 145 MDth/d Capital: $143.0 MM Estimated In-service: November 2017 Project Scope: — 8.2 miles of 36” pipeline loop — Compressor relocation — Upsize existing compressor Commercial Benefit: Northeast Marcellus to points of liquidity Avg. Contract Term: 15 ye
Slide 13: TGP - Niagara Expansion
TGP - Niagara Expansion Capacity: 158 MDth/d Capital: $26.0 MM Estimated In-service: November 2015 Project Scope: — 3.1 miles of 30-inch pipe looping — Station 229 meter facilities — Lease on National Fuel Gas (140 MDth/d) Commercial Benefit: Provides additional market for Marcellus gas an
Slide 14: TGP - South System Flexibility
TGP - South System Flexibility Capacity: 500 MDth/d Capital: $187.3 MM Estimated In-service: 1/2015-12/2016 Project Scope: — Station modifications at 7 stations — Horsepower replacement at 1 station Commercial Benefit: Provides more than 900 miles of north-to-south transportation capacity
Slide 15: TGP - Marcellus to Milford
TGP - Marcellus to Milford Capacity: 135 MDth/d Capital: $129.3 MM Estimated In-service: June 2018 Project Scope: — 12.9 miles of 36” looping — Station upgrades Commercial Benefit: Provides firm transportation to Milford (TCO) Avg. Contract Term: 15 years Current Status: — PAs executed
Slide 16: TGP - Connecticut Expansion
TGP - Connecticut Expansion Capacity: 72.1 MDth/d Capital: $82.2 MM Estimated In-service: November 2016 Project Scope: — 13.3 miles of pipeline loop — Acquisition of Thompsonville Lateral Commercial Benefit: Additional capacity to serve New England market Avg. Contract Term: 15 years C
Slide 17: TGP - Cameron LNG
TGP - Cameron LNG Capacity: 900 MDth/d Capital: $138.4 MM Estimated In-service: 2Q-4Q 2018 Project Scope: — Compressor station modifications to accommodate bi-directional flow — 18,000 HP of new compression — New pipeline laterals for enhanced supply access to the Perryville Hub Commercial
Slide 18: TGP - Lone Star
TGP - Lone Star Capacity: 300 MDth/d Capital: $122.8 MM Estimated In-service: July 2019 Project Scope: — 2 greenfield compressor stations Commercial Benefit: Provide supply to Corpus Christi LNG liquefaction project Avg. Contract Term: 20 years Current Status: — PA fully executed — Ser
Slide 19: SNG / Elba Express Expansion
SNG / Elba Express Expansion Capacity: 417 MDth/d (a) Capital: $179.6 MM (a) Estimated In-service: June 2016 Project Scope: — Compression on SNG and EEC — Additional pipeline and other facilities Commercial Benefit: Additional access to Marcellus/Utica shale gas for existing and new SNG cu
Slide 20: Liquefaction at Elba Island
Liquefaction at Elba Island Elba Liquefaction Company (ELC) / SLNG Capacity: 350 MMcf/d Capital (KM-share, $MM): ELC (KM 51%) $884 SLNG (KM 100%) 446 Total $1,330 Estimated In-service: 2017 - 2018 Project Scope: — ELC: Facilities for liquefaction — SLNG: Ship loading facilities; boil-off gas
Slide 21: East Region Additional Potential Growth Projects
East Region Additional Potential Growth Projects Additional Marcellus / Utica Project Opportunities — Large production increases in these two areas will provide expansion and greenfield opportunities to move more gas into the Northeast and significant quantities south to the demand centers on the
Slide 22: East Region Growth Opportunity
East Region Growth Opportunity TGP Northeast Energy Direct (NED) Project Market Path: — From Wright to Dracut — 30” mainline • 0.8 - 1.2 Bcf/d • $2.9 - $3.5 billion — Potential upside, 36” mainline • Up to 2.2 Bcf/d • $3.8 - $4.4 billion Supply Path: — From Marcellus to Wright — 30” mainline • 0
Slide 23: West Region Assets
West Region Assets Growth Drivers: Large asset footprint provides numerous opportunities for expansion capital investment West Region pipelines reach back to all Rockies basins — Diverse geology, and hydrocarbon mix, coupled with changes in technology, create the opportunity for new builds and c
Slide 24: West Region Project Backlog
West Region Project Backlog 24
Slide 25: EPNG - Upstream of Sierrita
EPNG - Upstream of Sierrita Capacity: Phase II, 350 MDth/d Capital: Phase II, $525.9 MM Estimated In-service: October 2020 Project Scope: — Phase II: New Franconia compressor station – 10,300 HP 100 mile, 36” Havasu Loop Reverse Casa Grande ‘A’ and ‘C’ and Cimarron compressor stations
Slide 26: West Region Additional Potential Growth Projects
West Region Additional Potential Growth Projects Growth in exports to Mexico — Total incremental Mexico growth by 2025 projected up to 2.2 Bcf/d that can be served from the EPNG footprint • Incremental power generation demand growth on Willcox, Samalayuca laterals and Sierrita • Creates opportunit
Slide 27: West Region Growth Opportunity
West Region Growth Opportunity Mexico Incremental Gas Demand Potential Est. Avg. Daily Gas Capacity Demand Key Demand Type (MW) (MDth/d) Electric Gen Conversions1 3,000 380 Electric Gen New Builds2 ~10,000 1,300 Industrial Potential 500 Total Incremental Mexico Demand Potential 2,180 Capital (KM s
Slide 28: West Region Growth Opportunity - Freedom Pipeline
West Region Growth Opportunity Conversion Opportunity - Freedom Pipeline Capacity: − 200,000 Bbl/d of 30o API crude − 100,000 Bbl/d of condensate Capital: $2.0 B - $2.5 B Estimated In-service: 2019 Project Scope: − Converts underutilized EPNG Lines 2000 and 1903/04 to crude oil/condensate se
Slide 29: Central Region Assets
Central Region Assets Growth Drivers: Large and strategic asset footprint near major shale plays and supply basins provides opportunities to attach new supply — Developing NGPL Gulf Coast Line expansion projects related to growing NE production Potential to serve 11 Bcf/d of transportation deman
Slide 30: Central Region Project Backlog
Central Region Project Backlog 30
Slide 31: KMLP - Magnolia LNG Liquefaction Transport Project
KMLP - Magnolia LNG Liquefaction Transport Project Capacity: 700 MDth/d Capital: $142.7 MM Estimated In-service: 3Q 2018 Project Scope: — Construct 32,000 HP at a new compressor station in Acadia Parish, Louisiana — Modify existing meter facilities located in Evangeline and Acadia Parishes,
Slide 32: KMLP - LNG Liquefaction Transport Project
KMLP - LNG Liquefaction Transport Project Capacity: 1,200 MDth/d Capital: $190.3 MM Estimated In-service: 3Q 2019 Project Scope: — Construct 82,000 HP at a compressor station in Acadia Parish, LA — Modify existing meter facilities located in Evangeline Parish, LA for bi-directional flow — Co
Slide 33: Central Region Additional Potential Growth Projects
Central Region Additional Potential Growth Projects Growth in Marcellus and Utica supply — Continue to develop expansion opportunities related to growing Marcellus and Utica supply seeking Midwest and Gulf Coast markets LNG Liquefaction Opportunities — LNG liquefaction projects moving forward in
Slide 34: Midstream Assets
Midstream Assets Growth Drivers: Large asset footprint provides continued expansion capital investment Competitive expandability and connectivity for increased deliveries into Mexico for its growing reliance on natural gas (Texas Intrastate) Significant storage positions and connectivity provi
Slide 35: Midstream Project Backlog
Midstream Project Backlog 35
Slide 36: Cheniere Corpus Christi LNG
Cheniere Corpus Christi LNG Capacity: 250 MDth/d Capital: $77.1 MM Estimated In-Service: 4Q 2018 Project Scope: — Crossover pipeline from KMTP Index 50 to Tejas mainlines Commercial Benefit: — Increase receipt capacity from Katy and HCP plant tailgate for delivery to Cheniere Corpus Christ
Slide 37: SK Freeport LNG
SK Freeport LNG Capacity: 440 MDth/d Capital: $153.3 MM Estimated In-Service: 3Q 2019 Project Scope: — New 30” lateral from Tejas mainline to Stratton Ridge — Additional upstream compression on existing mainlines Commercial Benefit: — Deliver gas to Freeport LNG terminal and capture additi
Slide 38: Midstream Additional Potential Growth Projects
Midstream Additional Potential Growth Projects Exports — Electric generators in Mexico are looking towards natural gas to fuel new plants to meet growth and replace other fuels such as oil — Additional pipeline expansions to serve Texas LNG liquefaction projects Processing and Gathering — Contin
Slide 39: Midstream Growth Opportunities
Midstream Growth Opportunities Gulf Coast Expansion Projects In addition to LNG gas exports, KM Midstream has opportunities to provide more gas to Mexico and to power and chemical plants that are expected to come on-line in 2015-2019 along the Texas Gulf Coast Capital: $200 MM - $750 MM Opport
Slide 40: Gas Pipeline Group Growth Outlook
Gas Pipeline Group Growth Outlook 40
Slide 41: Natural Gas Pipelines Appendix
Natural Gas Pipelines Appendix
Slide 42: EPNG - Washington Ranch Expansion Project
EPNG - Washington Ranch Expansion Project Capacity: Increases operational capacity by 4 Bcf Uinta Basin Piceance Basin Capital: $7.9 MM Anadarko Basin UTAH COLORADO Estimated In-service: December 2015 NEVADA CALIFORNIA ARIZONA Blanco Project Scope: San Juan — Drill and connect 2 wells (one c
Slide 43: EPNG - TGS Line 20121 Extension
EPNG - TGS Line 20121 Extension Capacity: 33 MDth/d Capital: $8.8 MM Estimated In-Service Date: July 1, 2015 Project Scope: — Trans Mountain meter station & regulation — 3.6 miles of 12” Pipeline extension of Line 20121 to Three Hills meter station Commercial Benefit: Additional capacity t
Slide 44: West Region Growth Opportunity - West Coast LNG
West Region Growth Opportunity West Coast LNG Liquefaction Transportation Jordan Cove LNG would be beneficial to western gas pipelines via higher throughput Incremental volumes (MMcf/d) 2013-2023 volumes. if Jordan Cove is built Based on the Brent forward prices, North GTN American LNG export projec
Slide 45: KMLP - Additional Magnolia LNG Liquefaction Transport
Central Region Growth Opportunity KMLP - Additional Magnolia LNG Liquefaction Transport Capacity: 700 MDth/d Capital: $57 MM - $172 MM Estimated In-service: Late 2019 Project Scope: — Construct 30,000 HP at a new compressor station in Calcasieu Parish, LA — Construct 64,000 HP at a compresso
Slide 46: Chicago Market Expansion Project (CMEP)
Central Region Growth Opportunity Chicago Market Expansion Project (CMEP) Capacity: 240 MDth/d Capital: $14.5 MM (KM 20% share) Estimated In-service: Late 2016 Project Scope: — Construct 30,000 HP at a new intermediate compressor station in Livingston County, IL Commercial Benefit: Provide
Slide 47: Midstream - Hill Country Pipeline Expansion
Midstream - Hill Country Pipeline Expansion Capacity: 160 MDth/d Capital: $9.7 MM Estimated In-Service: 2Q 2015 Project Scope: — Extension of Hill Country Pipeline by purchase of EPNG pipeline and new construction Commercial Benefit: — Plant dedication with volume commitment — Provides low
Slide 48: Midstream - DCP Goliad Plant Residue Lateral
Midstream - DCP Goliad Plant Residue Lateral Capacity: 160 MDth/d Capital: $33.1 MM Estimated In-Service: 3Q 2015 Project Scope: — Construction of 34 miles of 16” pipeline from Goliad plant tailgate to Tejas mainline Commercial Benefit: — Demand fee based contract — Expands existing Tejas
Slide 49: Midstream - Boardwalk to Liberty Y Grade Pipeline
Midstream - Boardwalk to Liberty Y Grade Pipeline Capacity: 15 MBbl/d Capital: $14.8 MM Expected In-Service Date: 1Q 2015 Project Scope: 15 miles of 8” y- grade pipeline connecting Boardwalk’s Flag City Plant to Liberty Pipeline (KM/ETC JV) Commercial Benefits: — Enables KM to take NGLs in
Slide 50: Midstream - Altamont Bluebell Loop and East Station Expansion
Midstream - Altamont Bluebell Loop and East Station Expansion Capacity: 6 MDth/d Capital: $9.4 MM Expected In-Service Date: 1Q 2015 Project Scope: — 6 miles of 12” pipeline — Discharge piping and treating capacity upgrades at East Station — Compressor installed at East station Commercial B
Slide 51: Midstream - Oklahoma Processing Optimization
Midstream - Oklahoma Processing Optimization Capacity Increase: 14.3 MDth/d Capital: $10.9 MM Expected In-Service Date: — Paden Plant optimization: 2Q 2015 — Harrah Plant optimization: 1Q 2015 Project Scope: — Paden Plant optimization: Installation of heat exchangers, Sulfa Treat tower and c
Slide 52: Midstream - Eagle Ford Fractionation Outlet
Midstream - Eagle Ford Fractionation Outlet Capacity: 30 MBbl/d Capital: $22.2 MM Expected In-Service Date: 4Q 2015 Project Scope: ~26 miles of 12-inch pipeline from Markham, TX to a new NGL fractionator being constructed near Sweeny, TX Commercial Benefits: — Provides economic outlet for
Slide 53: Midstream West Region Growth Opportunity
Midstream West Region Growth Opportunity Powder River Lateral Abandonment & Conversion to NGL Service Initial Capacity: 20 MBbl/d, expandable up to 70 to 100 MBbl/d with future pump station additions Estimated In-Service: 2016 Project Scope: — Conversion of 16-inch lateral to NGL service — New
Slide 54: Kinder Morgan
KINDERJMORGAN
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