All rights reserved. Enterprise Products Partners L.P.

MTS HoustonINDEPENDENCE HUB AND TRAIL

- PART ONE -Thursday May 26, 2005

Bart H. HeijermansBart H. HeijermansSenior Vice PresidentSenior Vice President

22

Table of Contents

Introduction to Enterprise Products Partners L.P.

Deepwater infrastructure in the Gulf of Mexico

Independence Hub and Trail

Marco Polo TLP

IndependenceHub

33

What makes his Project Unique?

Five producers and infrastructure developer collaborating in the fast track development of nine remote gas fields in a new supply corridor in the Eastern Gulf of MexicoRecord Setting Project

Deepest production platform (8,050 ft.)Deepest production (> 9,000 ft.)Deepest pipeline and flowlinesystemsLargest MEG Reclamation Unit

First production from federal waters adjacent to FloridaCompressed scheduleProject Team, contractors and vendors

44

Overview of Enterprise (EPD)

Enterprise filed its IPO in 1998 and has an enterprise value of approximately $14 billion

GulfTerra Energy Partners, L.P. and Enterprise Products Partners L.P. merged in September, 2004 to create one of the largest publicly traded energy partnerships serving producers and consumers of natural gas, natural gas liquids and crude oil

Large platform of assets across the midstream energy value chain

55

Natural Gas and NGL Value Chain

66

Integrated Midstream Energy Services

157157 MMBblsMMBblsof NGL salt of NGL salt

dome storagedome storage

13,231 milesof NGL and

petrochemicalPipelines

23 Natural Gas Processing

Plantswith capacity

of 6.3 BCF

9 NGL Fractionation

Plants with net capacity of439 MBPD

NGL ProductsNGL Products

EthaneEthane IsobutaneIsobutanePropanePropane

Normal Normal ButaneButane

Natural Natural GasolineGasoline

Storage &Distribution

Markets /Markets /2323 BCF of BCF of

Natural Gas Natural Gas StorageStorage

19,181 miles of Natural

Gas& Crude Oil

Pipelines7 Hub

Platforms

77

EPD Gulf of Mexico Assets

NewNewOrleansOrleans

HoumaHouma

Falcon NestSS332

VK817

EC373

TPC

GC608

GB72

VKGS

Poseidon

IndependenceHub

Marco Polo

Allegheny

Typhoon

Nautilus

SS331

Texas Texas CityCity

Port Port ArthurArthur

HoustonHouston

Cameron Highway

HIOS

East Breaks

IndependenceTrail

ConstitutionRed Hawk

Platform

Gas Processing Plant

Gas Pipeline

Oil Pipeline

Gas Pipeline (under construction)

Oil Pipeline (under construction)

88

The Future of Deepwater Infrastructurein the Gulf of OpportunityGulf of Opportunity

Marco Polo TLP4,300 ft. GC608

ConstitutionTruss Spar

5,300 ft. GC680

Typhoon TLP2,100 ft. GC237

EI 371

K2 North

K2

Ticonderoga

Boris

OilOil

GasGas

OilOil

OilOil

GasGas

GasGasGasGas

99

The Deepwater Field Pyramid

ProvedReserves (1)

UndiscoveredResources (2)

Oil (BBO) 0.9/3.6/4.5

Gas (TCF) 12.2/9.8/22.0 232

2.9/5.2/8.2

36.9

Total (BBOE) 75.5

500 < & < 1000 MMBOE500 < & < 1000 MMBOE

100 < & < 500 MMBOE100 < & < 500 MMBOE

50 < & < 100 MMBOE50 < & < 100 MMBOE

25 < & < 50 MMBOE25 < & < 50 MMBOE

7 < & < 25 MMBOE7 < & < 25 MMBOE

< 7 MMBOE< 7 MMBOE

Source MMS

> 923 x

Notes:1. OCS/Deepwater/Total2. In GOM

Est. Deepwater ~ 60 BBOE

> 1000 MMBOE> 1000 MMBOE

Under development (32) Mean Discovery = 65 MMBOEProducing (155)

Source Enterprise

1010

0

1

2

3

4

5

6

7

8

9

Pre 1

996

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

TLP Spar Fixed Tower Floater

Deepwater Platforms

??

2007/8/9 are EPD’s estimates

1111

Infrastructure Triggered DevelopmentsCumulative Deepwater Platforms and Cumulative Deepwater Platforms and SubseaSubsea TieTie--BacksBacks

0

10

20

30

40

50

60

70

80

90

100

Pre 1

996

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

TLP Spar Fixed Tower Floater

Subsea Field Developments Platform Field

Developments

Source Enterprise

1212

Infrastructure Ownership and Capacity Utilization

05

10152025303540

SS - Shelf EdgePlatform

SS - Floating Platform

Affiliated Non-Affiliated

Only 2 out of 38 producing deepwater platforms are owned by third parties

Value of Capacity

Indemnification Schemes

Risk/Reward Structure

Too many platforms are ‘right-sized’

More deepwater infrastructure to be owned by third parties

Subsea Tie-Backs

Source Enterprise

1313

Independence Hub and Trail

1414

Summary

Anadarko, Kerr-McGee, Devon, Dominion and Spinnaker formed Atwater Valley Producers Group (“AVPG”)Enterprise and Cal Dive International will own a floating platform named Independence Hub with the capacity to process 850 MMcfd (Enterprise will have an 80% interest in the platform entity and Cal Dive will own the remainder 20%)Enterprise will build, own and operate a new 134-mile, 24-inch natural gas pipeline, named Independence Trail, with a capacity of 850 MMcfdto transport production from the Independence Hub to an interconnect with Tennessee Gas Pipeline in WD68An integrated project team (“IPT”) with representatives of the Enterprise and the AVPG and other industry experts will build Independence HubAVPG will own and construct tie-back pipelines from the nine anchor fields to Independence HubFirst production expected 2007Independence Hub is Enterprise’s third deepwater platform development

1515

Independence Hub and Trail

Independence Hub

Independence Trail

TGP

1616

Independence Hub

Atlantia Semi in MC920

8,000 feet water depth

850 MMCFD capacity

17 risers

75,000 HP compression initially

Access to 7 million acres supply basin

134 mile 24-inch export pipeline

9 gas fields with initially 19 wells to be tied-back initially in water depths up to 9,000 feet

1717

Independence Project

SpidermanDC 620/621

San JacintoDC 618/619

MerganserAV 36/37

VortexAV 217/261LR 177/221

JubileeAV 305/349LR 265/309

Atlas NWLR 5

Anchor Field

MC920

Mondo NWLR 1/2

CheyenneLR 399

AtlasLR 49/50

Independence TrailIndependence Trail

45 miles

CallistoMC 876

Bass LiteAT 426

Other Discovery

Prospect to bedrilled in 2005

QMC 961

DaredevilLL 94/95

AdirondackAV 168/169

1818

Cheyenne

Jubilee

Vortex

Merganser

Atlas NE

Mondo NW

Atlas NW

Spiderman

San Jacinto

1919

Platform Hull and Moorings

Hull4-column semi with ring pontoonOutside 232’ x 232’ x 160’HColumns 46’ x 46’Pontoons 38’ x 26’Operating draft 105’Displacement 46,160 tonsHull dry weight 14,370 tons

Moorings12 x chain/polyester/chain lines2.5 miles longMooring horizontal offset 10,400’Polyester test inserts15.5’ x 100’ suction piles

2020

Platform Topsides

Two-level deck 140’ x 232’ nominalCapacities

850 MMcf/d gas4,250 bpd condensate3,000 bpd water

Dedicated allocation separationGas dehydration

Process design pressure 2,220 psig

~75,000 hp compression (5 Mars 100 units)

Export pipeline MAOP 3,250 psig

Hydrate inhibition with reclamationDry weight 8,400 tonsOperating weight 10,100 tons

2121

Platform Compression

6 x Mars 100 Turbine Driver Packages (5 Current, 1 Future)

90,000 HP (ISO Rating)

Two Stages of Compression 600 to 3100 psigSingle Stage Identical Compressor Trains

2222

MEG Reclamation Unit

COST SAVINGS / WEIGHT SAVINGS

Single Train/Spared Pumps

High Flux ExchangersHeaters/Condensers

High Efficiency Structured Packing

High MTD Exchangers

Simplified Piping Scheme

Condensation vs. Vacuum Duty

OFFSHORE MEG RECLAIMER FEED CAPACITYStatoil Asgard (N. Sea) 3 x 1800 BPDKerr – McGee Red Hawk 580 BPDShell Mensa 750 BPDEnterprise Independence 7800 BPD

APPROXIMATE DRY WEIGHTAsgard 740 tonsIndependence 375 tonsHalf the Weight, 40% Greater Capacity.

Source information Alliance EngineeringSource information Alliance Engineering

2323

Space and Payload Reserve

2424

What made this Area in the Eastern Gulf Attractive to Enterprise?

Remote location with no infrastructure and nine stranded fieldsFirst mover advantage

Platform will have excess capacity once the decline of the nine anchor fields starts Stimulate additional drilling in the area Majority of gas fields are relatively shallow

Low dry hole costLow drilling and completion cost

Low tie-back cost lower the development threshold for future fields (from 500 BCF to 25 BCF

Relative shallow fields: less wall thickness requiredAdditional pipeline loop not required because of gas productionFuture wells can be connected to existing flowlines and manifold

Less flow assurance problemsPlatform with subsea tie-backs will provide large footprint discoveries in a supply basin of over 7 million acres (size of the State of New Jersey) can be tied-back to the platform

2525

Falcon Corridor

Falcon DevelopmentEast Breaks 579

Water depth: 3450 ft.

Harrier DevelopmentEast Breaks 759 #1 (surface location

– East Breaks 758)Water depth: 4114 ft.

Falcon Nest Platform(owned by Enterprise)

Pioneer’s Falcon development resulted in drilling success at Harrier, Tomahawk and Raptor

Falcon Subsea Systems(owned by Pioneer)

2626

Independence Project - Timeline

2002 2003 2004 2005

Merganser Discovery

AVPG Formed

FEED work

Enterprise approached Kerr McGee with 3rd party owned hub concept

AVPG and Enterprise sign Notice to Proceed

Discoveries

Parallel Negotiations between:• AVPG members • Enterprise and AVPG• AVPG and El Paso• Enterprise and El Paso

Awarded Key LOI’s andproject execution starts

Ordered Line Pipe

Executed commercialAgreements after individual field developments have been sanctioned by producers…… First production 2007 First production 2007 ……

2727

Independence Project Structure

Subsea WorkDrilling & Completion

ProducersProducers

OwnersOwners

ContractorsContractors

TeamTeam

TeamworkTeamworkExpertiseExpertise

CommunicationCommunicationAccountabilityAccountability

No blame CultureNo blame Culture

Commercial AgreementsOwnershipConstructionOperation

Commercial AgreementsOwnershipOperationJOA / shared subseaflowline system

PlatformPipelines

Belief SystemBelief System

2828

Independence Project Organization

Executive SponsorProducers

Executive SponsorKey Contractors

Executive SponsorOwners

Executive Advisory CommitteeExecutive Advisory Committee

Steering Committee(Producers / Owners)

Subsea TeamIntegrated Hub Team(Producers / Owners)

Pipeline Team

Owner

ContractorsVendors

Producers

2929

Major Contracts for Hub

Hull and moorings design and fabrication

Installation of the anchor piles, polyester Mooring system along with the Semi-submersible Hub facility

Gas Turbine Compressor manufacturing

Structural fabrication of the Topsides and the assembly of the facilities and interconnect piping. KOS will also perform the 8,400 ton lift of the Topsides onto the Hull and the integration activity

3030

Jurong Fabrication Progress

3131

Fabrication Progress – KOS TopsidesProduction DeckProduction DeckMain DeckMain Deck

Transition ConesTransition Cones

7272”” Can MachiningCan Machining

3232

Independence Trail

Hub / SE - MC Area

Independence Trail will initiate as a 24-inch diameter pipeline at a new fixed Platform in WD-68 in approximately 115 (fsw) and extended southeast a distance of approximately 134 miles and ending with a 20” SCR onto Independence Hub, in MC-920 in 8,050 (fsw).

MC-920 Hub

3333

Independence Trail

3434

Independence Trail SCR

20-inch and W.T. of 1.21-inch

9,000 feet of VIV Strakes

Maximum lay-tension of 600 te.

Dry recovery weight SCR ~ 460 Te.

Wet recovery weight SCR ~ 900 Te.

3535

Line pipe

Welspun 24-inch line pipe with four W.T. (0.95”, 1.07”, 1.22”, 135”) and 20-inch SCR with W.T. of 1.210”Steel plate from Voest Alpine and Ukraine Pipe rolled by Wellspun (India)

Voest Steel Mill

3636

Pipelay

Stinger Elongation from 110 m to 140 mTension Up-Grade 525 MT to 800 MTA&R Up-Grade 420 MT to 1,000 MTAdditional Aft ship buoyancy / 4,000 MT

Solitaire / Rotterdam

3737

Solitaire Modifications

3838

Vessel back to work in NorwayApril 2005

3939

In-line Dual T- Sleds and Flexjoint

20” SCR Flex- Joint & Dual Tee Assemblies (12-inch and 16-inch on 24-inch)

Oil States

4040

Riser Recovery and Hang-Off

SCR Cross Haul hang off riggingLift and Hang sequenceHull mounted pull-in structures and sheaves

Cross Haul Support bucket

4141

Keys to Success

Collaboration and open discussion of problems and challenges

Performance of project team, vendors, contractors

Interface management

Timely completion of all wells

Regulatory review of permit applications and development plans

Environmental ‘forces of evil’ (hurricanes and loop currents)

4242

To be Continued……..

In 2006 In 2006 ……..