1

Pipeline Operations Update

Ray Miller

Vice President, Pipeline Management

2

TGP Pipeline Management

• Harvey

• System Summary

• Winter 2016/2017

• Summer 2017

• Pipeline and Storage Integrity

• Operational Expectations

3

TGP System Map

100 Line 800 Line

500 Line

200 Line

300 Line

200 Line

87

1

315 245 261

823 527

860

40

204

219

11,800 miles of pipe Active supply/delivery meters ~734 Storage capacity ~99 bcf Direct connected power ~23,300 mw

Bear Creek

Colden Hebron-Ellisburg-Harrison

267

9

110

321 Rivervale

Mahwah

4

Harvey

5,000

6,000

7,000

8,000

9,000

10,000

MD

TH

TGP System Wide Deliveries

0

300

600

900

1,200

1,500

15-A

ug

16-A

ug

17-A

ug

18-A

ug

19-A

ug

20-A

ug

21-A

ug

22-A

ug

23-A

ug

24-A

ug

25-A

ug

26-A

ug

27-A

ug

28-A

ug

29-A

ug

30-A

ug

31-A

ug

1-S

ep

2-S

ep

3-S

ep

4-S

ep

5-S

ep

6-S

ep

7-S

ep

8-S

ep

9-S

ep

10-S

ep

11-S

ep

12-S

ep

MD

TH

TGP Texas Deliveries

5

Harvey

Brazos River

Basement Sta. 9

Daylight at Sta. 9

6

Harvey

Warehouse

Mosquitoes

7

System Wide Flows

800 Line

Northeast ~4.5 Bcf/d Long haul south ~4.5 Bcf/d

8

TGP Gas Receipts

800 Line

Marcellus ~4.1 Bcf/d ↑ Utica ~1.1 Bcf/d Eagle Ford ~.7 Bcf/d Haynesville ~.4 Bcf/d Traditional and Offshore ~.5 Bcf/d ↓ Pipelines and storage ~2.0 Bcf/d

502 687 871 1,085 601

654 664

808

1,998 2,080

2,107

2,254

957 1,106

1,369

1,676 2,088

2,070

2,154

2,470 1,015

1,072

1,047

1,089

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2014 2015 2016 2017 YTD

ZONE 6

ZONE 5

ZONE 4

ZONE 3

ZONE 2

ZONE 1

ZONE L

ZONE 0

9

TGP System Wide Throughput

*YTD through August

MD

th/d

+5% +6%

+14%

10

Winter Northeast 2016/2017 Temperatures

200

400

600

800

1000

1200

1400

Nov Dec Jan Feb Mar

HD

Ds

Winter 2016/17

Winter 2015/16

Winter 2014/15

Winter 2013/14

30 Year Average

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2016 2017

System Wide LDC Demand M

Dth

/d

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2016 2017

System Wide Power Demand

12

MD

th/d

13

National Storage Activity

14

National Storage Regulations

• Evolving regulation of Gas Storage following Aliso Canyon incident

• Safety/Integrity Recommended Practices (RP) Development

– Industry-initiated in 2011; working groups formed in 2012

– Participation: Operators (including Kinder Morgan), consultants, State & Federal regulators

– 3-year process completed in 2015

• API RP 1170 and 1171 final publication in 2015

– Salt Cavern (1170)

– Depleted & Aquifer Reservoir(1171)

– Design, operations, integrity and safety procedures addressed

15

Bear Creek Storage Work

• Installing/removing tubing may require site preparation and workover rigs to handle thousands of pounds of steel.

• One of the greatest risks to people and the environment is the installation and removal of the tubing and the packer.

o Tubing must be removed to inspect the casing integrity. o Packers can fail and thus should be installed only where a risk

based analysis indicates.

Winter System Wide 2016/2017

• Overview

– Fairly average winter

– System-wide throughput increased 4% compared to winter 2015/2016

– Storage Inventories down from 2015/2016

• Demand

– TGP system peak (24-hr) ~11.8 Bcf/d on Jan 7, 2017 (including storage withdrawals)

– Power plant load peak (24-hr) ~ 1.8 Bcf on Jan 7, 2017

– Several peak winter days in January

– Exports to Mexico increased 21% compared to winter 2015/2016

• Supply

– Marcellus and Utica remained strong

– Eagle Ford declined slightly

– Dracut / Distrigas decreased

16

17

Winter System Wide Flows 2016/2017

volumes are MDth/d

2014-2015 2015-2016 2016-2017 % Change

LDC 2,079 1,654 1,720 4%

Power 1,040 1,132 1,095 -3%

Interconnects 4,727 4,942 5,173 5%

Mexico 499 696 844 21%

Other 240 366 299 -18%

TOTAL 8,585 8,790 9,131 4%

18

Station 315 Work

Summer System Wide 2017

• Demand

– Relatively flat to previous year

– Slight increase in exports to Mexico

– Northeast market demand experienced slight decrease

• Storage

– Northern Storage levels are slightly down from last year (91% vs 96%)

• Requesting customers to withdraw Northern storage ISS by Sep 30, 2017

• Managing storage inventory in Northern storage fields

– Bear Creek Storage levels are higher than last year (63% vs 44%)

– A lot of maintenance to finish up

19

20

Summer System Wide Flows 2016/2017

2015 2016 2017* % Change

LDC 925 866 847 -2%

Power 1,344 1,524 1,357 -11%

Interconnects 4,346 4,638 4,625 0%

Mexico 576 757 786 +4%

Other** 443 272 450 +65%

TOTAL 7,633 8,057 8,064 +0.1%

Volumes are MDth/d * Through August

**Other includes fuel, storage and industrial

-

200

400

600

800

1,000

1,200

1,400

1,600

2015 2016 2017*

Zone 6

Zone 5

Zone 4

Zone 2

Zone 1

Zone 0

21

Summer System Wide Power Demand

+13%

MD

th/d

* Through August

-11%

22

Pig Launcher

23

Types of Pigs disk pig smart metal loss pig brush pig

gauge pig

smart pig in the trap

smart caliper pig

Mrs. Piggy

24

Pipeline and Storage Integrity

Pipelines

• MFL pipe metal loss

• AFD long seam metal loss

• HSD hard spot detection

• EMAT stress corrosion cracking

• Material verification hydrotest

• Make piggable projects

• Class changes projects

• New project modifications

• Pressure weld remediation

• Geo hazard remediation

• Known anomaly remediation

• Wrinkle bend analysis

Storage Fields

• MFL casing metal loss

• Noise logs

• Gamma ray neutron logs

• Cement bond logs

• Well head maintenance program

• Master valve replacement program

• Annulus pressure program

• Down hole shut-off valves

• Bottom hole pressure survey

• Shut-in tests

• Inventory verification

• Tubing and packer review

25

Possible Service Interruptions

• Maintenance (Pipe and horsepower)

– Planned

– Unplanned

• Integrity

– Anomaly remediation

• Expansion project work

– Pig launchers and receivers (Installing, modifying, operating)

• Other

– Soil movement remediation program

– Class location upgrades

– Hurricane Harvey

26

Tools TGP Uses To Mitigate Outages

• Communication

– Post EBB communications early

– Once posted, communicate with shippers

• Operational Strategy

– Adjust line pack to accommodate minor outages

– Utilize existing storage capacity

• External Options

– Work with other pipelines to mitigate effects

– Manage imbalance with other pipes before and after an outage

– Acquire third party service

27

Operational Expectations

• Continued high utilization across the system

– Strong Marcellus and Utica supplies

– Increased Haynesville and Eagle Ford drilling

– New LNG and Mexico markets

• Continued maintenance, integrity, and expansion related activities

– System-wide work

– Limited operational flexibility

• Continued restrictions

– Depth of restrictions depend upon many factors

• Continued safe and reliable deliveries to firm shippers

Station 317 Work

28

29

Tennessee Gas Pipeline 24 Hour Contact List

Gas Control

24 hour and emergency

800-231-2800

John O’Neal – Mgr

713-420-6106

Cell –832-571-9866

Layne Sanders – Dir

713-420-5024

Cell – 832-563-5024

Danny Ivy - VP

713-369-9311

Cell – 713-829-2761

Ray Miller – VP

713-369-9330

Cell – 713-206-8338

Transport and Storage

24 hour Scheduling Hotline

713-420-4999

Cathy Soape – Manager

713-420-3814

Cell – 713-922-5083

Debbie Vasquez – Manager

713-420-3864

Cell – 713-806-7723

Sherri Glazebrook – Director

713-420-3677

Cell – 281-678-1183

Gene Nowak – VP

713-369-9329

Cell – 713-252-9759

Commercial/Marketing

Jason Connelly - Director

713-420-2446

Cell – 713-444-3940

Ernesto Ochoa – Director

713-420-1734

Cell – 281-414-3823

Kim Watson – President

713-369-9233

Cell – 713-204-5423

Field Operations

Tom Burgett– Director(Northeast)

860-763-6027

Cell – 713-829-2919

John Pannel – Director (Central)

615-221-1511

Cell – 615-714-1930

Cy Harper – Director (South)

281-689-4534

Cell – 205-613-6701

Tom Dender – VP

713-420-3833

Cell – 205-572-1549

Ken Grubb –COO GAS Pipelines

713-369-8763

Cell – 713-702-1210

Updated September 2017