© 2014 The Williams Companies, Inc. All rights reserved.

Williams Energy Canada: Propane Dehydrogenation in Alberta: Challenging, But Possible

CERI Petrochemical Conference: June 2015

© 2014 The Williams Companies, Inc. All rights reserved.2 Williams: CERI Petrochemical Conference 2015

Forward-looking statements

The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) and Williams Partners L.P. (WPZ) may contain or incorporate by

reference statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of Section 27A

of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward looking statements in

reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements by

various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “assumes,” “forecasts,” “intends,”

“might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “guidance,” “outlook,” “in service date” or other similar expressions. These

forward-looking statements are based on management's beliefs and assumptions and on information currently available to management and include, among others,

statements regarding:

> Amounts and nature of future capital expenditures;

> Expansion and growth of our business and operations;

> Financial condition and liquidity;

> Business strategy;

> Cash flow from operations or results of operations;

> The levels of dividends to Williams stockholders and of cash distributions to WPZ unitholders;

> Seasonality of certain business components;

> Natural gas, natural gas liquids, and olefins prices, supply, and demand; and

> Demand for our services

Forward-looking statements are based on numerous assumptions, uncertainties and risks that could cause future events or results to be materially different from

those stated or implied in this presentation. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could

cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:

> Whether Williams has sufficient cash to enable it to pay current and expected levels of dividends;

> Whether WPZ has sufficient cash from operations to enable it to pay current and expected levels of cash distributions, if any, following establishment of cash

reserves and payment of fees and expenses, including payments to WPZ’s general partner;

> Availability of supplies, market demand, and volatility of prices;

> Inflation, interest rates, and, in the case of Williams, fluctuation in foreign exchange and general economic conditions (including future disruptions and volatility in

the global credit markets and the impact of these events on our customers and suppliers);

> The strength and financial resources of our competitors and the effects of competition;

© 2014 The Williams Companies, Inc. All rights reserved.3 Williams: CERI Petrochemical Conference 2015

Forward-looking statements continued

> Ability to acquire new businesses and assets and integrate those operations and assets into our existing businesses, as well as successfully expand

our facilities;

> Development of alternative energy sources;

> The impact of operational and development hazards and unforeseen interruptions;

> Costs of, changes in, or the results of laws, government regulations (including safety and environmental regulations), environmental liabilities, litigation,

and rate proceedings;

> Williams’ costs and funding obligations for defined benefit pension plans and other postretirement benefit plans sponsored by its affiliates;

> WPZ’s allocated costs for defined benefit pension plans and other post retirement benefit plans sponsored by its affiliates;

> Changes in maintenance and construction costs;

> Changes in the current geopolitical situation;

> Our exposure to the credit risk of our customers and counterparties;

> Risks related to strategy and financing, including restrictions stemming from our debt agreements, future changes in our credit ratings and the availability and

cost of capital;

> The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate.

> Risks associated with weather and natural phenomena, including climate conditions;

> Acts of terrorism, including cybersecurity threats and related disruptions; and

> Additional risks described in our filings with the Securities and Exchange Commission (SEC).

Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution

investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or to announce publicly the

result of any revisions to any of the forward-looking statements to reflect future events or developments.

In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this

announcement. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon

changes in such factors, our assumptions, or otherwise.

With respect to WPZ, limited partner interests are inherently different from the capital stock of a corporation, although many of the business risks to which we are

subject are similar to those that would be faced by a corporation engaged in a similar business.

Investors are urged to closely consider the disclosures and risk factors in Williams’ and WPZ’s annual reports on Form 10-K filed with the SEC on Feb. 27, 2013,

and each of our quarterly reports on Form 10-Q available from our offices or from our websites at www.williams.com and www.williamslp.com.

© 2014 The Williams Companies, Inc. All rights reserved.4 Williams: CERI Petrochemical Conference, 2015

Williams Assets & Operations

© 2014 The Williams Companies, Inc. All rights reserved.5 Williams: CERI Petrochemical Conference, 2015

Unique Business

Williams Energy Canada

> Our Vision: Increase the value of stranded or underutilized NGL’s and olefins by utilizing our unique assets, unique experience, and strategic relationships.

> Produce NGLs and olefins from oil sands offgas

> Offgas used as fuel in upgrader or processed

– Processing offgas removes higher value NGLs and olefins

> Significant environmental benefits– CO2 emissions reduction from

Suncor/Horizon: 0.5 million tonnes per year in 2015

– Significant SO2 emissions reduction

© 2014 The Williams Companies, Inc. All rights reserved.6 Williams: CERI Petrochemical Conference | 2015

Propane Dehydrogenation (PDH) Project Update

> Converts propane into polymer grade propylene (PGP)

> Plans for 2 PDH plants

– 525 kTa capacity (1.1 billion lbs/yr of PGP) each

– >$1 billion CAD capex for each plant

– Anticipated start-up times

• PDH1: late-2018

• PDH2: to be determined

> PDH technology has been selected

– UOP Oleflex

> Regulatory approval received

> Completed FEED work

> Site works is underway

> Formal negotiations progressing with one company for PGP offtake from PDH 1

– ~75 kTa of PGP still available for offtake from PDH1

> In discussions with multiple parties for PGP offtake from PDH2

© 2014 The Williams Companies, Inc. All rights reserved.7 Williams: CERI Petrochemical Conference | 2015

PDH Project Update…continuedStripping and Storing Topsoil

© 2014 The Williams Companies, Inc. All rights reserved.8 Williams: CERI Petrochemical Conference, 2015

Company Capacity (kta)Expected / Announced

Start-upMarket Intelligence

Dow 750 Q3-2015Assumed to be dedicated to derivative plant;

under construction

Enterprise 750 Q4-2016Announced fee-type deals;

under construction

REXpro 300 2017 Cancelled

Ascend1,000

(2 plants)2019+ Not financed, no off-taker

Formosa Plastics 650 2018 Construction has started

Williams (Canada)

525 2019 Dedicated to derivative plant

Sunoco Logistics Under evaluation

Other PDH Projects in North America

Strategic Value & Market Dynamics

© 2014 The Williams Companies, Inc. All rights reserved.9 Williams: CERI Petrochemical Conference | 2015

Advantages of a Williams PDH in Alberta

> Traditionally advantaged propane feedstock

> Access to Asian markets

> Traditional Alberta propane markets shrinking

– Bakken, Utica, and Marcellus production, Cochin pipeline reversal

> Only producer of polymer grade propylene (PGP) in Canada

– Significant storage, handling and distribution facilities and expertise in place

> Established PGP market presence

> Complementary to U.S. PGP production

> Local hydrogen market for by-product stream

> Synergies with Williams existing facilities in Alberta and USGC

– Unique offgas fractionation facilities provide high value outlet for butane/butylene co-product

– PGP distribution hub in USGC

© 2014 The Williams Companies, Inc. All rights reserved.10 Williams: CERI Petrochemical Conference | 2015

$1,101 / MT

$989 / MT

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

$US/MT

Cumulative Production - Million Metric Tons

Low cost Alberta PDH-sourced PGP creates highly competitive PP on a global basis

• An integrated Alberta polypropylene plant would have one of the lowest cash costs of any plant in North America

• The base case margin of $622/MT would generate margins of $280 million/yr

• The large amount of naphtha based PGP supply supports global prices and high margins for North American producers with a feedstock advantage

US Price$1,729 / MT

Alberta PP Cash Costs(@ 25 cpg diff)

$1,216 / MT

Base Case Alberta PP Margin of $628/MT with

range of $513 to $740/MT

IHS 2014 Competitive Cost & Margin Analytics – Polypropylene; Williams Energy Canada

© 2014 The Williams Companies, Inc. All rights reserved.11 Williams: CERI Petrochemical Conference | 2015

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

$US/MT

Cumulative Production - Million Metric Tons

Source: IHS 2014 Competitive Cost & Margin Analytics – Polypropylene; Williams Energy Canada

Alberta produced PP integrated with PDH-sourced PGP will be among the lowest cost NA producers

$1,216 / MT0.00

• An integrated Alberta polypropylene plant would have one of the lowest cash costs of any plant in North America per IHS

• Due in part to the linkage of the PGP offtake price to the Edmonton propane price discount to Mt. Belvieu, an Alberta plant remains competitive with a Gulf Coast plant even in the scenario with a flat Edmonton basis

US PP Price$1,729/MT

$986 / MT(0.50)

$1,101 / MT(0.25)

Albert Integrated Polypropylene Plant – Cash Cost $US/MT

Edm-MB Basis ($US/gal)

© 2014 The Williams Companies, Inc. All rights reserved.12 Williams: CERI Petrochemical Conference | 2015

Source: Williams Energy Canada, Pembina, Plains, Keyera

Expected growth in the WCSB NGL supply has spurred major fractionation capacity additions

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2014 2015 2016 2017 2018

Bbl/d Planned Alberta Propane Fractionation Capacity

Pembina RFS 3

Plains

Williams Offgas

Dow

Keyera

Pembina RFS 2

Pembina RFS 1

Plains Expansion

PDH I Requirement

© 2014 The Williams Companies, Inc. All rights reserved.13 Williams: CERI Petrochemical Conference | 2015

Propylene Derivatives in Alberta

> Between PDH units and offgas-produced PGP, Williams’ PGP production in Alberta will be sufficient to support 2 world-scale polypropylene plants with additional volume for other derivative units.

– Economic advantage to building in Alberta

• Lower cost PGP, Government CCA program

> Export PGP derivative off West Coast to access Asian markets• Option if North America propylene market becomes over-supplied

11 days

23 days

38 days

16 days

© 2014 The Williams Companies, Inc. All rights reserved.14 Williams: CERI Petrochemical Conference | 2015

Propylene Derivatives – Market Share & Growth

> Polypropylene (68%)…plastics films, fibers, packaging (4.8%/yr)

> Acrylonitrile (7%) …Acrylic fibers, ABS resins, nylon (2.2%/yr)

> Propylene Oxide(7%) … Antifreeze, polyurethane foams(3.4%/yr)

> Cumene to Phenol(4%) …Epoxy Resins, Polycarbonate(4.7%/yr)

> Acrylic Acid(4%)…Paints, coatings, hygienic products(5.2%/yr)

> Others (10%)…Plasticizers, coatings, solvents, acetone, detergent, pharmaceuticals, gasoline(2.5%/yr)

> Note: Source IHS Global Inc.

© 2014 The Williams Companies, Inc. All rights reserved.15 Williams: CERI Petrochemical Conference | 2015

Market Access/Relative Value for Propylene Derivatives

> Multiple Buyers– Easier to shift to higher priced markets with minimal changes to infrastructure

– Standardized products accepted around the world

> 22,000 bpd of propane to propylene equivalent to

~110,000 bpd bitumen export value

> 22,000 bpd of propane to polypropylene equivalent to

~140,000 bpd bitumen export value

© 2014 The Williams Companies, Inc. All rights reserved.16 Williams: CERI Petrochemical Conference | 2015

PDH Environmental Considerations

> Technology was selected due reduced environmental impact:

– Reduced water usage due to areal coolers vs cooling water

– Lower electrical power consumption

– Less noxious waste material

© 2014 The Williams Companies, Inc. All rights reserved.17 Williams: CERI Petrochemical Conference | 2015

Challenges of PDH in Alberta Compared to the USGC

> Higher capital cost

> Uncertain business climate

> Feedstock (propane) price uncertainty due to potential propane export terminals

> Derivative partner/offtaker complications

– Derivative plant has no other PGP supply options

> Complex OSBL situation

– Long lead time for grid connection

– Lack of utility water infrastructure

© 2014 The Williams Companies, Inc. All rights reserved.18 Williams: CERI Petrochemical Conference | 2015

Future Opportunities

> PDH is on the cusp….but we’ll do it!– Capital costs moving favorably

> PDH 2

> PDH 3?

> PDH in Canada still looks strong