Gas/Electric Partnership

Transcription

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

2 Cautionary Statement Regarding Forward-looking Statements 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 forwardlooking 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 and on our website at 2

3 Kinder Morgan Natural Gas Pipelines Source: KM GIS

4 Interstate Movements of Natural Gas 2011 Source: EIA Natural Gas Annual

5 Interstate Movements of Natural Gas 2014 Source image : EIA Natural Gas Annual

6 Projected Growth in Shale Gas Production Bcf/d 90 U.S. Dry Natural Gas Production U.S. Dry Natural Gas Production History Projections Shale Gas 2014 Marcellus 14 Bcf/d* Non-Associated Offshore Tight Gas Coalbed Methane Associated with Oil Onshore Alaska Source: U.S. Energy Information Administration, Annual Energy Outlook 2013 Early Release EIA: 2014 estimate 6

7 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 7

8 Tennessee Gas Pipeline Source: TennesseeAdvantage.com 8

9 Shale Supply and Pipeline Reversals Tennessee Gas Pipeline Line Line 300 Line Utica 300 Line Marcellus 100 Line 800 Line 500 Line Line Eagleford 100 Line 800 Line 500 Line Northeast supply from GOM & Onshore Source: TGP Shipper Meeting 100% Northeast supply from Marcellus Ohio reversal with 1 + Bcf flowing south 9

10 NGPL Capability to Serve Incremental 5,000 + MW Power load Northern Border REX 1 + Bcfd 1.4 Bcfd ~ 7,000 MW* REX 1.6 Bcfd ~ 8,000 MW* 1.6 Bcfd ~ 8,000 MW LEGEND Storage Power Plant Pipeline Compressor Source: NGPL Customer Meeting 2013 *NGPL can add 2 + Bcfd of system capacity by reversing existing pipelines 10

11 KinderMorgan Y-Grade Project Source: kindermorgan.com/projects/ygrade/ 11

12 References TGP REX NGPL /AtlanticSunriseOpenSeasonProjectMap2013.pdf Transco KM Y-Grade 12