Keystone Pipeline System: Gulf Coast Pipeline & Keystone XL Pipeline

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1 Keystone Pipeline System: Gulf Coast Pipeline & Keystone XL Pipeline Natural Gas and Energy Association of Oklahoma May 9, 2013

2 TransCanada Enterprise Value ~$50 billion North America s Largest Natural Gas Pipeline Network 35,500 miles wholly-owned 7,000 miles partially-owned Average volume of 14 Bcf/d Keystone Pipeline 2,149-mile system, from Hardisty AB to Cushing OK and Wood River IL 591,000 bpd capacity Safely delivered 500 million barrels of oil since June

3 TransCanada North America s 3rd Largest Natural Gas Storage Operator 380 Bcf of capacity Canada s Largest Private Sector Power Generator 19 power plants, 10,800 MW 4,400 employees 34 states 7 provinces U.S. headquarters in Houston 3

4 Pipelines in North America More than 2.5 million miles of pipelines in the U.S. enable safe movement of energy products Safest and most efficient form of transportation Because they operate underground, their importance goes unnoticed Virtually every gallon of gasoline and diesel fuel used in Oklahoma is delivered by pipeline 4

5 TransCanada s Oil Pipeline Business US$14 billion investment 1.4 million bbl/d capacity More than 1.1 million bbl/d contracted Provides significant platform for: Oil sands growth Shale oil growth Connecting to new markets/supply Other transportation services 5

6 Gulf Coast Pipeline 485-mile pipeline from Cushing, OK to Nederland, TX Construction began in August and the project is expected to be operational in late 2013 Capacity up to 700,000 barrels per day when in operation in 2013 but ultimate of 830,000 in 2015 US$2.3 billion project that has created 4,000 construction jobs 6

7 Gulf Coast Pipeline is Good for America The Gulf Coast Pipeline will relieve a glut of oil at Cushing The Gulf Coast Pipeline will transport growing supplies of U.S. crude oil to meet refinery demand in Texas The Gulf Coast Pipeline will reduce U.S. dependence on foreign crude from unreliable sources The Gulf Coast Pipeline will transport more North American oil supply to meet American demand 7

8 Gulf Coast Pipeline is Good for Oklahoma The Gulf Coast Pipeline is spending approximately $2 million each month on construction goods and services The Gulf Coast Pipeline workforce spends approximately $2.5 million each month for personal purchases The Gulf Coast Pipeline has created 1,000 jobs in Oklahoma Pipeline: 750 jobs Facilities: 250 jobs The Gulf Coast Pipeline is supplied by Oklahoma vendors Cameron Valves, Tulsa Pipeline Equipment Inc. Tulsa Local 798, Tulsa 8

9 Pipeline Construction: An Assembly Line 9

10 Gulf Coast Pipeline Construction Spread 1 OK/TX Spread 2 TX Spread 3 TX Clearing 100% 100% 98% Grading 100% 100% 96% Stringing 100% 100% 96% Welding 100% 100% 95% Lowering-in 86% 100% 74% Backfill 85% 100% 72% 10

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18 Keystone XL 1,183-mile pipeline from Hardisty, AB to Steele City, NE US$5.3 billion capital cost Private funding, no government spending Presidential Permit application submitted on May 4, 2012 Nebraska Governor approved Keystone XL re-route on Jan 22, 2013 Department of State issued Draft Supplemental Environmental Impact Statement on March 1,

19 Economic Benefits Creates thousands of jobs and billions of dollars in private-sector investment Allows hard-working Americans use their skills to build a critical piece of North American energy infrastructure that will supply U.S. refineries with oil they need to continue making products we rely on every day Generates billions in tax revenue during construction and pipeline operations 19

20 Energy Security The U.S. consumes 18.5 million barrels of oil and imports eight to nine million barrels each day The EIA (Energy Information Administration) forecast in 2012 the U.S. will continue to import 7.5 million bbl/d into 2035 to meet its needs Strengthens American energy security by delivering reliable supplies of Canadian and American oil 20

21 Contact Information Gulf Coast Pipeline Project Office 2700 Post Oak Blvd., Suite 400 Houston TX tproject General Inquiries Toll-free: (866) Landowner Inquiries Toll-free: (866)

22 Thank You!