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Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids Gas/Electric Partnership Anders T. Johnson Northwest Conference Center Cypress, Texas February 6, 2014 Source: EIA

Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

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Page 1: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Gas/Electric Partnership

Anders T. Johnson Northwest Conference Center

Cypress, Texas February 6, 2014

Source: EIA

Page 2: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

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 future actions, conditions or events, future operating results or the ability to generate revenues, income

or cash flow or to make distributions or pay dividends are forward-looking statements. Forward-looking statements

are not guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or

events and future results of operations of Kinder Morgan Energy Partners, L.P., Kinder Morgan Management, LLC, El

Paso Pipeline Partners, L.P., and Kinder Morgan, Inc. may differ materially from those expressed in these forward-

looking statements. Many of the factors that will determine these results are beyond Kinder Morgan's ability to

control or predict. These statements are necessarily based upon various assumptions involving judgments with

respect to the future, including, among others, the ability to achieve synergies and revenue growth; national,

international, regional and local economic, competitive and regulatory conditions and developments; technological

developments; capital and credit markets conditions; inflation rates; interest rates; the political and economic

stability of oil producing nations; energy markets; weather conditions; environmental conditions; business and

regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural

products; the timing and success of business development efforts; terrorism; and other uncertainties. There is no

assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them

do, what impact they will have on our results of operations or financial condition. Because of these uncertainties,

you are cautioned not to put undue reliance on any forward-looking statement. Please read "Risk Factors" and

"Information Regarding Forward-Looking Statements" in our most recent Annual Reports on Form 10-K and our

subsequently filed Exchange Act reports, which are available through the SEC’s EDGAR system at www.sec.gov and

on our website at www.kindermorgan.com.

Cautionary Statement Regarding Forward-looking Statements

2

Page 3: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Kinder Morgan Natural Gas Pipelines

Source: KM GIS

Page 4: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Interstate Movements of Natural Gas 2011

Source: EIA Natural Gas Annual 2011

4

Page 5: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Interstate Movements of Natural Gas 2014

Source image : EIA Natural Gas Annual 2011

5

Page 6: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Projected Growth in Shale Gas Production

Source: U.S. Energy Information Administration, Annual Energy Outlook 2013 Early Release EIA: 2014 estimate

Bcf/d

0

10

20

30

40

50

60

70

80

90

U.S. Dry Natural Gas Production

Onshore

Associated with Oil

Coalbed Methane

Non-Associated Offshore Tight Gas

Alaska

Shale Gas

U.S. Dry Natural Gas Production

History Projections

2014 Marcellus 14 Bcf/d*

6

Page 7: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Dynamics of Supply and Transport

• Predicted growth of Marcellus supply

• Predicted growth of Utica supply

• Traditional pipelines reversing direction – Tennessee Gas

• Open Season for pipeline reversal – Rockies Express

– Natural Gas Pipeline of America

• Liquids outlet to enable gas development – Gas pipeline conversion to Y-Grade

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Page 8: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Tennessee Gas Pipeline

Source: TennesseeAdvantage.com 8

Page 9: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

Shale Supply and Pipeline Reversals Tennessee Gas Pipeline

300 Line

100 Line 500 Line

800 Line

200 Line

500 Line 100 Line

800 Line

500 Line

200 Line

300 Line

2007 2014

Marcellus Utica

Eagleford

Northeast supply from GOM & Onshore 100% Northeast supply from Marcellus Ohio reversal with 1+ Bcf flowing south

Source: TGP Shipper Meeting 9

Page 10: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

LEGEND Storage Power Plant Pipeline Compressor

NGPL Capability to Serve

Incremental 5,000+ MW Power load

REX 1+ Bcfd

1.6 Bcfd ~ 8,000 MW*

1.6 Bcfd ~ 8,000 MW

REX

Northern Border

1.4 Bcfd ~ 7,000 MW*

*NGPL can add 2+ Bcfd of system capacity by reversing existing pipelines

Source: NGPL Customer Meeting 2013 10

Page 11: Source: EIA Changes in Gas Pipeline Utilization, Flow Directions, and Conversions … · 2014-02-10 · Changes in Gas Pipeline Utilization, Flow Directions, and Conversions to Liquids

KinderMorgan Y-Grade Project

Source: kindermorgan.com/projects/ygrade/ 11