Wachovia LNG Conference. May 16, 2006

Transcription

1 Wachovia LNG Conference May 16, 006

2 Forward Looking Statements This presentation contains forward looking statements, including these, within the meaning of Section 7A of the Securities Act of 1933, as amended and Section n 1E of the Exchange Act of 1934, as amended. Forward looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results s and securities values of Kinder Morgan Inc., Kinder Morgan Energy Partners, L.P. and Kinder Morgan Management, LLC collectively known as Kinder Morgan ) ) may differ materially from those expressed in the forward looking statements contained throughout this presentation and in documents filed with the SEC. Many of the factors that will determine these results and values 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, i regional and local economic, competitive and regulatory conditions and developments; ; technological developments; capital markets conditions; inflation rates; interest est rates; the political and economic stability of oil producing nations; energy markets; weather conditions; environmental conditions; business and regulatory or legal decisions; ions; the pace of deregulation of retail natural gas and electricity and certain agricultural a products; the timing and success of business development efforts; terrorism; and other r uncertainties. You are cautioned not to put undue reliance on any forward looking statement.

3 Overview Who is Kinder Morgan? Infrastructure Opportunities in North America Kinder Morgan Response 3

4 Who is Kinder Morgan? Largest independent transporter of petroleum products in the U.S. transport more than million barrels per day Bbl/d) nd largest transporter of crude oil and petroleum products in Canada C transport more than 950,000 Bbl/d of crude oil and petroleum products nd largest transporter of natural gas in U.S. approximately 4,000 miles of interstate / intrastate pipeline nd largest natural gas storage operator in U.S. over 300 Bcf of working gas storage capacity Largest transporter of CO in the U.S. transport more than 1 Bcf/d of CO Largest independent terminal operator in U.S. ~96 million barrels of liquids capacity handle over 80 million tons of dry bulk products 3rd largest LDC in Canada largest in B.C.) 89,000 customers 4

5 Kinder Morgan Assets Pacific Trans Mountain Northern TransColorado CALNEV Pacific 3 Corridor Express KMCO Wink 3 KMIGT Trailblazer SACROC Claytonville KMTejas Cypress Yates 8 7 KMTP 5 Cochin NGPL North Platte 3 Plantation Central Florida NGPL KMI) NGPL GAS STORAGE KMI) RETAIL GAS DISTRIBUTION KMI) GAS FIRED POWER PLANTS KMI) PRODUCTS PIPELINES KMP) PRODUCTS PIPELINES TERMINALS KMP) TRANSMIX FACILITIES KMP) NATURAL GAS PIPELINES KMI KMP) NATURAL GAS STORAGE KMI KMP) NATURAL GAS PROCESSING KMI KMP) CO PIPELINES KMP) CO OIL FIELDS KMP) CRUDE OIL PIPELINES KMP) TERMINALS KMP) TERASEN GAS KMI) PETROLEUM PIPELINES KMI) PETROLEUM PIPELINES TERMINALS KMI),3,8) INDICATES NUMBER OF FACILITIES IN AREA KM HEADQUARTERS 5

6 North American Energy Trends Expanding Canadian Oilsands Production Growing Rockies Natural Gas Production Increased Supply of LNG on Gulf Coast 6

7 KM LNG Response Trend KM Opportunity Increased Supply of LNG on Gulf Coast PIPELINE: KM Louisiana Pipeline STORAGE: Dayton, Sayre, N. Lansing, additional opportunities 7

8 LNG: Increased Supply on Gulf Coast Pipeline Footprint will allow the Intrastate the opportunity to capture LNG transport and balancing business as the market develops *# *# Source: company websites!!! k j Katy & Calhoun LNG 1 Bcf/d Oxy Ingleside 1 Bcf/d ExxonMobil Vista Del Sol 1 Bcf/d Cheniere Corpus Christi.6 Bcf/d k j! k j Freeport LNG 1.5 Bcf/d *# *# BP Pelican Island 1. Bcf/d!! Sempra Port Arthur Bcf/d!! Sempra Cameron 1.5 Bcf/d LNG Plant existing) LNG Plant proposed)! & Natural Gas Pipeline Co. of America KM Tejas Pipeline KM Texas Pipeline Cheniere Sabine Pass.6 Bcf/d ExxonMobil Golden Pass 1 Bcf/d KM Mier Monterrey Pipeline Henry SU Trunkline 300 MMcf/d expansion 8

9 Elements of Single LNG Value Chain Range of Investments by Component $3 6 Billion Upstream $1 Billion Liquefaction $ 3 Billion Shipping $1 Billion Regasification Pipeline $0.5 Billion Market Value Range of Delivered LNG Cargoes = $3.6 $7. Billion per year a) Marketing From industry sources a) Based upon.0 Bcf/d of LNG receipts and $5 $10/MMBtu gas prices 9

10 Regional Markets TOTAL and Chevron each concluded, based on their take away away capacity analysis in the Sabine Pass area, that a new header is necessary. After a thorough screening process of alternatives, TOTAL and Chevron decided that the best proposal is Kinder Morgan s. The new header will provide a highly reliable transportation solution by connecting the Sabine Pass Terminal to key interstate pipelines in the Eunice area where their capacity is the highest. Take Away Capability BCFD Capacity Utilized Available Johnson's Bayou 1 1 Kinder/ Starks Henry Hub 5 3 Eunice Area Sabine Pass LNG Terminal FERC approval includes a 4 inch, 16 mile pipeline to Johnson Bayou 16 Sabine Miles Terminal 45 Miles Kinder/Starks Pipelines Johnson s Bayou 110 Miles Eunice Area Pipelines Henry Hub 10

11 ! Kinder Morgan Louisiana Pipeline 340 Texas Louisiana CGT Delivery Point Transco Delivery Point TETCO Delivery Point ANR Delivery Point Texas Gas Delivery Point FGT Delivery Point Cypress Delivery Point 30 Lake Charles LNG Southern Union Co. Beaumont Southwest Loop Delivery Point Trunkline Delivery Point Lake Charles Tennessee Delivery Point Sabine Delivery Point Lafayette Houston Texas City Galveston 343 Golden Pass ExxonMobil Energy Port Arthur Sempra Energy Sabine Pass Cheniere LNG, Inc.!!!! Cameron LNG Sempra Energy NGPL Delivery Point 34 Sabine Pass LNG Terminal Leg 1 Receipt Point Leg Receipt Point Creole Trail Cheniere LNG, Inc. Southwest Loop Johnson's Bayou Del. Pt. Bridgeline Delivery Point 346 Henry Hub Proposed Kinder Morgan Louisiana Pipeline Leased Capacity on NGPL Proposed Interconnects LNG Terminal Location Natural Gas Pipeline Company of America NGPL Compressor Station 11

12 Kinder Morgan Louisiana Pipeline Description Capital $484 MM Project Description Rayne Lateral Leg 1) 137 miles 4,130,000 Dth/d In service by April 1st, 009 NGPL Lateral Leg ) 1 mile 36 1,597,500 Dth/d Includes 00,000 Dth/d of lease capacity on NGPL to Johnson s Bayou Southwest Loop area In service by October 1st, 008 NGPL Lateral 1,597,500 Dth/d Rayne Lateral,130,000 Dth/d Sabine Pass Facility Tie in in Facilities between Rayne and NGPL Laterals, 1,065,000 Dth/d 1

13 Kinder Morgan Louisiana Pipeline LLC Executed Precedent Agreement with Chevron USA MDQ: 1,697,500 Dth/d Negotiated Rate: Fixed for term of contract Term: 0 years Initial Project Capacity is Sold Out Executed Precedent Agreement with Total Gas & Power North America, Inc MDQ: 1,697,500 Dth/d Negotiated Rate: Fixed for term of contract Term: 0 years 13

14 Kinder Morgan Louisiana Pipeline LLC Beyond the Initial Project Real Future Growth Potential: Currently in discussions to connect additional LNG Plants to the Pipeline ExxonMobil Golden Pass LNG Terminal Sempra Cameron LNG Terminal Southern Union Lake Charles LNG Terminal Potential for expansion of project Increase of 0.3 to 1.5 Bcf/d in capacity Capex ranging from an additional $110 $305 million Greenfield storage development adjacent to the project Future expansion or extensions of the pipeline Smaller Opportunities Include: Synergies with NGPL Early In service opportunities Short haul, haul, IT and PALs services 14

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