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Kinder Morgan Kinder Morgan Silver Canyon Silver Canyon Pipeline Pipeline Business Overview ACC Workshop NOI February 13, 2004

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Page 1: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

Kinder Morgan Kinder Morgan Silver Canyon Silver Canyon

PipelinePipelineBusiness OverviewACC Workshop NOIFebruary 13, 2004

Page 2: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

2

OverviewOverview

Map Markets Supply Basins Timeline

Page 3: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

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Silver Canyon PipelineSilver Canyon Pipeline

&-

&-&-

&-

Needles

Topock

Blythe/Ehrenberg

Phoenix

San Diego

Las Vegas

TucsonEl Paso

Albuquerque

Blanco

Blythe EnergyPower Plant

Harqualhala

PandaGila River

Plant

Palo VerdeArlington Valley

MesquiteRedhawk

West Phoenix

ProposedCopper Eagle

Storage

Silver Canyon Pipeline

Market Hub

Power Plant

3rd Party Pipeline

Page 4: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

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MarketsMarkets

Arizona Phoenix area

Utility LDC (2 proposed interconnects with

SWG) Power Plants: Hoping to serve the

6300 MW of new generation near Palo Verde

California (Ehrenberg) SoCalGas Baja Norte

Page 5: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

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Supply Basins Supply Basins

Rocky Mountains (TransColorado) Significant increase in

Piceance/Paradox production over next 5 years

TransColorado 125,000/d expansion to San Juan Hub 4th Qtr. 2004

San Juan Slight production decline over the

next 10 years, but increased south flow from Rockies will fill the gap

Page 6: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

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LNG Access from BajaLNG Access from Baja

Firm transportation is offered from supply sources at Ehrenberg (LNG) to markets East of California (Phoenix)

Pipeline segment from Phoenix to Ehrenberg will be bi-directional

300,000 MMBtu/d

Page 7: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

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TimelineTimeline

Open Season Closed April 30, 2003

Mid-2006 In-Service date (depends on customer needs)

Page 8: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

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Here’s what you get Here’s what you get with Kinder Morganwith Kinder Morgan

Flexibility Contractual flexibility

Seasonal contract volumes, sculpted contract volumes

Receipt to delivery point pathing Alternate receipt and delivery points

(including out of the path) Primary firm transportation from Ehrenberg

to Phoenix area Fully segmented, Order 637 compliant

Operational flexibility 16/24 hour gas day

Page 9: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

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How we are different How we are different from other expansion from other expansion projectsprojects

Kinder Morgan has strong balance sheet which allows flexibility when raising capital for expansions/acquisitions

Access to the Rocky Mountain, San Juan Basins (vs. Permian) and LNG

Lower fuel Pipeline industry experience

Commercial Construction and Operations

Page 10: Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

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Contact InformationContact InformationBusiness Development Business Development TeamTeam

Steven M. Harris, Vice President [email protected] 713-369-9214

Lorraine M. Lindberg, Manager [email protected] 713-369-9277

Kimberly S. Watson, Director [email protected] 713-369-9233