1

TGP Maintenance/Operations Update

April 18, 2017

2

Agenda

Cathy Soape Hutton Manager, Trans and Storage Svc, KMI East Region

Brian Merchant

Director, Engineering Gas Control, KMI East Region

TGP System Overview Scheduling Update Winter Look Back (‘16/17) Summer Preview (‘17) Scheduled Maintenance Development Project Updates Discussion and Feedback

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TGP System Overview

Marcellus Shale

Utica Shale

Southeast

Northeast

EagleFord Shale

Haynesville Shale

4

Tennessee Gas Pipeline

11,900 miles of pipeline 96 Bcf of storage capacity ~10.23 Bcf/d – design capacity Abundant & Growing Supply

System Overview

5

System Flows – 2017

800 Line

500 Line

200 Line

300 Line

100 Line

200 Line

Long Haul to the south

Sta 87

Marcellus ~3.2-3.4 Bcf/d Utica ~1.0-1.2 Bcf/d ~2.0-2.2 Bcf/d South flow at Sta 87 Consistent exports to Mexico and Canada High system utilization- Maintenance

performed at mutually agreeable times

TGP Operations

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TGP Increasing Annual Throughput

*YTD through March

MD

th/d

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

+5% +6%

+8%

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First Quarter Lookback

*North East Market Area

2015 YTD 2016 YTD 2017 YTD Change

LDC* 1,691 1,335 1,350 1%

Power 1,160 1,143 1,051 -8%

Pipeline

Interconnects 4,670 5,018 5,197 4%

Mexico 572 731 849 16%

Other 836 886 744 -16%

TOTAL 8,928 9,113 9,192 1%

• All volumes are MDth/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

2015 2016 2017YTD through March up 1%

-10%

-25%

-30%

-1%

9%

-20% -11% -7% -10%

-1%

6%

-40% -11%

-9%

32%

• Northeast Market

Average Daily LDC Demand (MDth/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

2015 2016 2017

14% -9%

-8%

18%

1%

14% 24%

27%

4%

5%

-3%

11%

-18%

YTD through March down 8%

-17%

14%

System Average Daily Power Demand (MDth/d)

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DART/Scheduling Updates

DART UPDATE

• Southern Natural Gas (SNG) implemented DART April 1, 2016

• El Paso Natural Gas (EPNG) implementation date 10-1-17

• Enhancements coming to DART – Additional information on Overrun Cut Notice Emails –

effective Tuesday, April 18, 2017 – New confirmation screen features coming soon 2017

• New Enhancements on the horizon – New MDQ Utilization screen features/validations-

coming soon 2017 – New Hourly OFO tolerance screen

DART SCHEDULING TOOLS

• No delivery nominations allowed to Dracut • No receipt nominations allowed at Mendon until ID1 (compared to

EPSQ volumes) • No delivery nominations allowed at Wright/Shelton until ID1

(compared to EPSQ volumes) • Invalid nominations not allowed • Limitations of Storage Services/Linepack Services • No meter bounces allowed at power plants downstream (may be

invoked) • New restriction locations as needed • Imbalance Warnings • Monthly OFOs • Daily OFOs • Hourly OFOs • New Rate Card effective April 1, 2017

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Winter Look Back (‘16/17)

Winter Look Back Summary

• Peak Day was ~10.1 Bcfd on Jan 7, 2017 - Deliveries

• Peak Day was ~1.7 Bcfd on Jan 8, 2017 – Storage (withdrawal)

• Peak Day was ~1.8 Bcfd on Jan 7, 2017 – Power Plant Load

• Winter OFO count

– 2016/2017 Zones 5 & 6 - 28 vs 21 in 2015/2016

11 OFO’s were directed at power plants (Dec/Jan) vs 8 in 2015/16

– 2016/2017 All other zones - 16 vs 6 in 2015/2016

• Storage Inventories down from 2015/16

– 44% lower than the levels for 2015/16

– 2% higher than 2014/15

• System Challenges

– Less supply coming in from Dracut/Distrigas

– Short Term Unit/Pipeline Issues • Managed without cutting In-Path Services at Timely

• Continuous communication between Commercial, Scheduling and Gas Control Groups

Winter Days - (%) Restricted Restriction Point Highly Utilized TGP Paths

Percentage Days Restricted

(November - March)

Percentage Days Restricted

(November - March)

Percentage Days Restricted

(November - March)

Percentage Days Restricted

(November - March)

2013/2014 2014/2015 2015/2016 2016/2017

Sta. 200/204 30.46% 22.52% 64.47% 68.87%

Sta. 245 100% 100% 100.00% 99.33%

Sta. 261 30.46% 32.45% 68.42% 27.81%

Sta. 267 2.65% 5.29% 30.92% 55.63%

MLV 273 0.00% 0.00% 0.00% 17.22%

Sta. 315 BH 100% 100% 76.32% 96.69%

Sta. 321 94.70% 94.71% 86.18% 92.72%

MLV 336 50.33% 73.51% 57.24% 30.46%

MLV 355 BH 70.20% 5.96% 9.21% 5.30%

Sta. 1 BH 50.99% 11.26% 84.21% 0.00%

Sta. 9 BH 0.00% 0.00% 0.00% 43.71%

Mahwah 49.67% 64.24% 92.76% 88.08%

Rivervale 80.79% 80.79% 66.45% 80.79%

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Winter Summary - System Deliveries

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%

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Winter Total System Power Plant Deliveries M

Dth

/d

-

200

400

600

800

1,000

1,200

2013-2014 2014-2015 2015-2016 2016-2017

Zone 6

Zone 5

Zone 4

Zone 2

Zone 1

Zone 0

9%

16%

-3%

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Cold New England Weather

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

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Winter Northeast Market Deliveries

volumes are MDth/d

2014-2015 2015-2016 2016-2017 % Change

LDC 1,506 1,178 1,279 +9%

Power 315 326 266 -19%

Interconnects 1,361 1,485 1,493 +1%

TOTAL 3,183 2,989 3,038 +2%

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Winter North Supply Analysis

Winter Period (Nov-Mar) Average MDth/d

MD

th/d

0

1,000

2,000

3,000

4,000

5,000

6,000

2013-2014 2014-2015 2015-2016 2016-2017

Cobb

Cornwell

Dracut

Distrigas

Marcellus

Rex

Shelton

Utica

Wright

-1%

+17%

+16%

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Summer Preview (‘17)

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Summer Preview

• Demand to remain strong across the system

• Capacity Utilization on the 200/300 Line in Northeast should remain high • Marcellus and Utica Production to remain at High Levels • Southbound Flows

– Volumes through Station 87 should remain in the 2.0-2.2 Bcf/d as maintenance activities are completed

• Exports to Mexico and Canada to remain strong • Storage Field Levels

– Northern Storage levels down from last year; better able to manage maintenance activities and handle market area supply swings

– Bear Creek Storage levels higher than last year; better able to handle higher power demand in the South

• High level of system maintenance, repair, rebuild activity

• GETTING READY FOR WINTER

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Planned Maintenance (‘17)

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EBB Website

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Impact Report – Next Week Outages

Segment

Design Capacity

Available Capacity & Amount reduced by

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Impact report – Monthly Report

Disclaimers • Anticipated Impacts are estimates. Actual

nominations, market demand, weather and pipeline conditions, etc. will determine if, and through what level, restrictions become necessary.

• Unless otherwise stated, all scheduled dates represent gas days as defined in the Tennessee Gas Pipeline tariff to mean a period of twenty-four consecutive hours, beginning and ending at 9:00 a.m. (Central Clock Time).

Disclaimers Disclaimers

• Scheduled dates are subject to change.

• Projects may be added, altered, delayed or cancelled.

• TGP will provide notice of such additions or changes via DART postings.

• Dates posted on DART should be deemed correct in the event of conflicts between DART posted dates and dates within this presentation.

Disclaimers

• Yellow

– Restrictions are possible, but not likely

– With extended duration, restrictions could be necessary from time to time

– (M) denotes that meter(s) may be impacted, refer to EBB posting

• Red

– Restrictions are probable

Color Key for Maps

Zone 0 and L (April/May)

Hydrotest (M) MLV 17-3 to 13- 3 (4/26/2017 – 6/30/2017)

Capacity of 688k reduced to 590k (seg. 109 BH)

ILI/Cleaning MLV 32-3S to 25-3D (4/18 & 4/20)

Spike Test (M) MLV 20-3 to 17-3 (3/20/2017 - 5/19/2017)

Pipe Replacement MLV 20-1 to 20-1A (3/2017 – 5/5/2017)

Capacity of 599k reduced to 415k (seg. 125 BH)

ESD Test Sta. 409 (4/19/2017 - 4/21/2017)

Capacity of 563k reduced to 350k (seg. 490 FH)

Recoat MLV 823-1 to 827-1 (4/3/2017 – 5/31/2017)

Zone 0 and L (June)

Hydrotest (M) MLV 17-3 to 13- 3 (4/18/2017 – 6/30/2017)

Capacity of 688k reduced to 590k (seg. 109 BH)

Spike Test (M) MLV 20-2 to 17-2 (6/1/2017 - 7/20/2017)

Capacity of 599k reduced to 415k (seg. 125 BH)

Hydrotest (M) MLV 826-1 to MLV 827 (6/19/2017 - 7/20/2017)

Capacity of 221k is reduced to 0 (seg. 823 BH)

Station 823 – Station Reversal Piping Modifications (6/5/2017 - 6/15/2017) Capacity of 221k is reduced to 0 (seg. 823 BH)

Zone 1 (April/May)

Trap Modifications Sta. 546 (4/10/2017 –6/10/2017)

Capacity of 1,263 reduced to 1,000 (seg. 548 BH)

ILI/Cleaning MLV 538-2 to 542-2 (5/25/2017 & 6/8/2017)

Zone 1 (June)

Trap Modifications Sta. 546 (4/10/2017 –6/10/2017)

Capacity of 1,263 reduced to 1,000 (seg. 548 BH)

ILI/Cleaning MLV 538-2 to 542-2 (5/25/2017 & 6/8/2017)

ILI/Cleaning MLV 555-1 to 555-1 (6/13, 6/14, 6/20 & 6/22) Capacity 1,263 reduced to 1,040 ( seg. 548 BH)

Zone 2 and 3 (April/May)

Pipe Replacement MLV 107-5 to 109-5 (3/13/2017 – 5/27/2017)

Capacity of 2,366 reduced to 2,300 (seg. 187 BH)

Pipe Replacement MLV 866-1 to 867-1 (4/17/2017 – 4/23/2017)

Capacity of 2,366 reduced to 1,950 (seg. 187 BH)

Zone 2 and 3 (June)

Spike Test MLV 106-4D – 108-4 (6/26/2017 – 9/16/2017)

Capacity of 2,366 reduced to 2,280 (seg. 187 BH)

Zone 4 (April/May)

Drip Removal Sta. 214-1 to 215-1 (4/17/2017 – 5/1/2017)

Capacity of 1,837 reduced to 1,560 (seg. 204 BH)

ILI/Cleaning MLV 307-1 to 219-2 (4/18/17, 4/20/17 & 4/25/17)

Capacity of 1,185 reduced to 800k (seg. 307 BH)

Anomaly Remediation MLV 321-2 to 325-2 (4/24/2017 – 5/6/2017)

Capacity of 1,594 reduced to 1,150 (seg. 324 FH)

Station Outage Sta. 310 (4/20/2017 )

Capacity of 1,145 reduced to 1,000 (seg. 307 BH)

Anomaly Remediation MLV 200-4B to 204-4 (5/29/2017 – 6/10/2017)

MLV 207-4 to 208-4 (5/26 – 6/7) Capacity of 1,837 reduced to 1,510 (seg. 204 BH)

Zone 4 (June)

Anomaly Remediation MLV 200-4B to 204-4 (5/29/2017 – 6/10/2017)

MLV 207-4 to 208-4 (5/26/2017 – 6/7/2017) MLV 204-2 to 209-2 (6/26/2017 – 7/8/2017)

MLV 209-2 to 214-2 (6/12/2017 – 6/24/2017) Capacity of 1,837 reduced to 1510 - 1780 (seg. 204 BH)

Station Tie-In Sta. 323A (6/16/2017 – 6/29/2017)

Capacity of 1,594 reduced to 1,400 (seg. 324 FH)

Station Tie-In Sta. 315 (6/5/2017 – 6/11/2017)

Capacity of 1,774 reduced to 1,490 (seg. 315 BH)

Electrical Tie-Ins Sta. 317 (6/12/2017 – 6/15/2017)

Capacity of 1,774 reduced to 1,680 (seg. 315 BH)

Unit Maintenance Sta. 245 (8/11/2014 – 8/14/2014)

Zone 5 (April/May)

Unit Maintenance Sta. 241-2A (4/17/2017 – 4/21/2017) Sta. 249-2A (4/24/2017 – 4/29/2017)

Capacity of 1,014 reduced to 990k – 960k (seg. 245 FH)

Unit Maintenance Sta. 245-1C (5/1/2017 – 5/3/2017)

Sta. 249-one unit @ a time (5/8/2017 – 6/16/2017) Capacity of 1,014 reduced to 990k – 880k (seg. 245 FH)

Unit Maintenance Sta. 254-2B (5/1/2017 – 5/7/2017)

Capacity of 1,178 reduced to 910k (seg. 256 FH)

ILI Cleaning MLV 313A-100/313A-400 (5/9, 5/11 & 5/16)

Capacity of 813k reduced to 420k (seg. 299FH)

ESD Test Sta. 405 (5/9/2017)

Unit Maintenance Sta. 325-3A & 4A (5/30/2017 – 6/2/2017)

Capacity of 1,594 reduced to 1,580 (seg. 324 FH)

Unit Maintenance Sta. 245 (8/11/2014 – 8/14/2014)

Zone 5 (June)

Unit Maintenance Sta. 249-1B,2B (5/8/2017 – 6/16/2017)

Capacity of 1,014 reduced to 890k (seg. 245 FH)

ESD Test Sta. 241 (6/12/2017 – 6/16/2017)

Capacity of 1,080 reduced to 800k (seg. 245 FH)

ESD Test Sta. 245 (6/19/2017 – 6/23/2017)

Capacity of 1,080 reduced to 760k (seg. 245 FH)

Unit Maintenance Sta. 325-3A & 4A (5/30/2017 – 6/2/2017)

Capacity of 1,594 reduced to 1,580 (seg. 324 FH)

Zone 6 (April/May)

New England Area ILI/Cleaning MLV 264B-101 (4/12/2017 & 4/13/2017) MLV 268A-101 (4/24/2017 & 4/26/2017 MLV 270B-400 (4/10/2017 & 4/11/2017)

New England Area Anomaly Remediation MLV 270C-300 (4/3/2017 & 4/28/2017)

New England Area Anomaly Remediation MLV 270C-300 (5/1/2017 - 5/19/2017) MLV 270A-100 (5/22/2017 - 6/23/2017) MLV 270C-301 (5/1/2017 - 5/19/2017)

New England Area ILI/Cleaning MLV 336-1 to 356-1 (4/27, 5/3, 5/8 &

5/31/2017)

Zone 6 (June)

New England Area Anomaly Remediation MLV 270A-100 (5/22/2017 - 6/23/2017)

Zone 0

Automation Control Update Sta. 409A (Sep./Oct. Exact Dates TBD)

Spike Test MLV 405-2 to 408-2 (moved to 1Q18)

Future Significant Outages

Zone L& 1 (Cameron LNG Project)

Station Reversal Sta. 827 (5/9/2017 - 8/17/2017)

Sta. 847 (8/12/2017 - 12/14/2017) Cooling System Upgrade

Sta. 823 (9/1/2017 - 11/30/2017 Hydrotest

MLV 846-1 to 847-1 (9/15/2017 - 10/15/2017) Sta. 847 (9/15/2017 - 10/15/2017)

Tie-Ins Delhi Lateral (8/7/2017 - 8/17/2017) Station 836A ( 8/7/2017 -8/17/2017)

Future Significant Outages

Zone 3

Pipe Replacement MLV 119-2 (3rd Qtr. 2017 – Exact Dates TBD)

Future Significant Outages

Zone 4

200 Line Ohio/ Kentucky Anomaly Remediation 200-1,-2, -3 & -4 - Various Sites

(June – July)

Susquehanna Expansion 300 Line Tie-Ins (June - July)

Future Significant Outages

Zone 5

Pipe Replacement MLV 231-2 (3rd Qtr. 2017)

Connecticut Expansion Tie-Ins( 200 Line (3rd Qtr. 2017)

Future Significant Outages

Zone 6

Connecticut Expansion Tie-Ins( 200/300 Line (3rd Qtr. 2017)

Controls Replacement (M) Sta. 266A (9/26/2017 – 10/20/2017)

Future Significant Outages

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Development Project Updates

Sta 87

Supply-Push Dth/d In-Service

Broad Run Expansion 200,000 Jun-2018

Susquehanna West 145,000 Nov-2017

Orion 135,000 Jun-2018

Market-Pull Dth/d In-Service

SW Louisiana Supply 900,000 Q1-2018

Lone Star 300,000 Jan-2019

Connecticut Expansion 72,100 Nov-2017

Triad 180,000 Jun-2018

Development Project Updates

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Sta 219

Sta 17

Sta 534

Sta 313

Sta 47

Sta 40

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Questions and Feedback

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Appendix

TGP Hourly Process

• Nominations due 1 hour prior to effective hourly cycle for all hourly cycles except 8 AM cycle

(8 AM cycle nominations due at 8 AM CCT) • Schedulers available until 10 PM CCT nightly • Nominations for hourly cycles after 11 PM cycle:

– Must be entered in Dart – Call Gas Control – Gas Control will call the On Call Scheduler – All parties in the chain must be available to confirm changes – Scheduler schedules/disapproves the nomination for the hourly cycle – Any nominations for hourly cycles 12 AM to 6 AM will be disapproved if Gas Control is not

notified – Nominations must physically be able to flow/adjusted for the hourly cycle (Maximum Hourly

Entitlement MHE); NOTE: Gas Control may not be able to set rate for 8 AM nominations – Service priority switching for hourly cycles may be disapproved – No new business nominations will be accepted at the 8 AM cycle

• Entire batch may be resubmitted; however changes must be “checked” • Be sure to check both Upstream(s) and Downstream(s) • If nominations are disapproved, the customer will be contacted

TGP Retro Process

• A request for retro must be made within 7 calendar days of the gas day affected

• Retro nominations are submitted in Dart as an 8 AM • Customer sends an email to TGP Scheduler with retro request

including all affected/confirming parties for approvals • Separate email(s) to affected/confirming parties can be used for

proprietary information • Email(s) should contain the valid reason for the retro • A summary of the transaction is helpful for analysis • All affected parties should reply all with their

approval/disapproval • If all approvals are received, TGP Scheduler will process the retro • If all approvals are not received, the customer’s 8 AM retro will

be disapproved and the customer and all affected parties will be notified

Acceptable Reasons for Retros

• Discrepancies with confirming parties (EDI mismatch, EPSQ, late cuts, etc on a case by case basis)

• Obvious customer data entry errors ie. transposed pin nos, GIDs, etc (accommodated on a best efforts basis and all parties involved in chain must approve)

• EPSQ/system balanced issues • System issues • Schedule change in order to allocate gas.

Not Acceptable Reasons for Retros

• Customer requests made outside of the 7 day window. • Doing new business after the last cycle has ended • If the correction removes a penalty • To increase volume through a restriction • Request that would put any party or meter further out

of balance with the pipeline • Reallocation of supply and/or market after gas day is

complete

BACKHAUL FUEL OVERRIDE CHANGES

TGP holds Quarterly meetings to review system operations. Rate Schedules; Rate Schedule FT-A; Subsection 5.5 Fuel and Losses “….. The quantity of gas retained by Transporter for Fuel and Losses shall be equal to the quantity of gas scheduled for delivery to Transporter multiplied by the applicable F&LR percentage shown in the Summary of Rates and Charges in Transporter’s effective FERC Gas Tariff for the zone of receipt and zone of delivery applicable to the transportation service. However, for service that is rendered entirely by displacement and for gas scheduled and allocated for receipt at the Dracut, Massachusetts receipt point, Shipper shall furnish only that quantity o f gas associated with Losses as shown in the Summary of Rates and Charges in Transporter’s FERC Gas Tariff. ….” The losses component of the F&LR is equal to 0.01% effective April 1, 2017.

BACKHAUL FUEL OVERRIDE CHANGES

Backhaul Fuel Override Paths • Station 267 to Station 237 (Segment 266, Segment 265, Segment 261, Segment 260, Segment

256, Segment 249, Segment 245, Segment 241, Segment 237) • Niagara Spur North to South (Segment 296, Segment 295) • MLV 336 to Station 319 (Segment 324, Segment 321, Segment 320, Segment 394, Segment

319) • Station 219 to Station 318 (Segment 300, Segment 307, Segment 313, Segment 314, Segment

315, Segment 316, Segment 317, Segment 318) • Station 230 to Station 219 (Segment 224, Segment 219) • Station 87 to Station 219 (Segment 187, Segment 200, Seg 204, Seg 209, Seg 212, Seg 214,

Seg 216, Seg 217) • STA 110 to East End of WV Lateral (Segment 111 FH, Segment 112 BH, Segment 114 FH) • Station 834 to Station 87 (Segment 834, Segment 847, Segment 860) • Station 534 to Station 860 (Segment 534, Segment 542, Segment 548) • Carthage Lateral (from Station 40 to the end of the lateral) (Segment 700 from mainline to

End of lateral) • Station 40 to Station 32 (Segment 132) – delete this backhaul fuel group entirely • Station 409 to STA 40 (Segment 409, Segment 101, Segment 109, Segment 117, Segment

125, Segment 132)

STAFF HOURS

Staffing Hours Regular work hours from 7:30 AM until 4:30 PM Call After Hours line for any questions after 4:30 PM 713-420-4999

Weekends, After Hours, Holidays from 7:30 AM until 10:00 PM Call After Hours line for any questions 713-420-4999

After 10:00 PM call Gas Control 1-800-231-2800