Operations and Facilities Update

Chris Shorts 1

Union Gas |

0

5

10

15

20

25

30

35

40

45

11/1

11/1

6

12/1

12/1

6

12/3

1

1/15

1/30

2/14 3/

1

3/16

3/31

Daily

HDD

Union Merged Merged Normal

2016/2017 Winter Experience

2

9.3% warmer than normal in Winter 2016/17

November: 17.5% warmer

March: 4.4% colder

December: 0.6% colder

January: 13.7% warmer

February: 20.1% warmer

Union Gas |

Weather Forecast Variability

3

Operating flexibility is critical to respond to fluctuations in weather

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

November December January February March

% -C

olde

r / +

War

mer

Winter weather forecast by month for 2016/2017

November ForecastStart of Month ForecastActuals

Union Gas |

0%

20%

40%

60%

80%

100%

Nov Mar Jun Oct

5 Yr Range

5 yr Average

2016-2017 Actual

2015-2016 Actual

Storage Operation

4

Storage levels reflecting the warmer than normal winter

Union Storage Percentage Full

December 2016: 28 PJ withdrawn

March 2017: <33 PJ than 2016

Union Gas |

Winter Operational Update Highlights

November

2016 Dawn Parkway expansion facilities in service adding just under 0.5 PJ of capability

December

Parkway discharge sets new record at 2.9 PJ

January

Parkways discharge sets new record, over 3 PJ for 3 consecutive days (Jan 5th, 6th, and 7th)

February

Seven days of net injections into storage

5

Union added new facilities to meet changing customer demands

Union Gas |

Empress

Fort Frances (MDA)

EDA

WDA

NDA SSMDA

NCDA

Dawn Parkway

Union’s transportation portfolio is changing

Changing Gas Flows Meeting Market Demand

Union North “West”

Union North “East”

Union South

Nipigon Hearst

6

Union Gas |

2015/16 Dawn Parkway Expansion

Lobo C Compressor

Hamilton-Milton Pipeline

Brantford-Kirkwall Pipeline

Parkway West & Parkway D Compressor

Expansion projects on-time and on-budget 7

Union Gas |

2016 Burlington Oakville Project

8

2016 Burlington-Oakville OEB Application $120 MM Expected Total $85 MM

Union Gas |

2017 Dawn Parkway Expansion

Dawn

Lobo

Bright

Kirkwall

Parkway/Parkway West

Dawn Compressor

Lobo D Compressor

Bright C Compressor

2017 Dawn Parkway OEB Settlement $623 MM Expected Total $623 MM

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Union Gas |

2017 Dawn Parkway Projects Dawn H

10

Union Gas |

2017 Dawn Parkway Projects Bright C

11

Union Gas |

2017 Panhandle Reinforcement Project

2017 Dawn Parkway OEB Application $265 MM Expected Total $265 MM

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Union Gas |

2017 Panhandle Reinforcement Project

13

Union Gas |

Future Dawn Parkway Expansion 2019 Open Season Results

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• Open Season Closed – February 2, 2017

• Union received and accepted 132 TJ/d of bids with a 15

year term starting November 1, 2019

• Signed contract of 75 TJ/d

Union Gas |

2016 – 2018 Dawn Storage Expansion Space and Deliverability

• OEB Approval – April 2017 for space and deliverability

• OEB Submission for 2018 deliverability work – October 2017

Year In-Service

Incremental Space (TJ)

Incremental

Deliverability (TJ/d)

2016 1,600 0

2017 1,900 68

2018 0 57

Total 3,500 125

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