1

Pipeline Operations Update

Enfield Office

October 14, 2015

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Agenda

• TGP System Overview

• Winter Look Back (‘14/15)

• Summer Look Back (‘15)

• Scheduled Maintenance Remaining

• Scheduling Update

Marcellus ShaleMarcellus Shale

Utica Shale

Southeast

Northeast

EagleFord ShaleEagleFord Shale

Haynesville ShaleHaynesville Shale

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Tennessee Gas Pipeline

� Proudly providing reliable service

to New England for over 60 years

� 11,900 miles of pipeline

� 96 Bcf of storage capacity

� ~9.0 Bcf/d – design capacity

� Abundant & Growing Supply

System Overview

4

System Flows – 2014

Long Haul to the south

� Marcellus ~3.5 Bcf/d

� Utica ~.6 Bcf/d

� Increased Middle System utilization (in

reverse)

� ~1 Bcf/d South flow at Sta 87

TGP Operations

800 Line

500 Line

200 Line

300 Line

100 Line

200 Line

Sta 87

5

System Flows – 2015

800 Line

500 Line

200 Line

300 Line

100 Line

200 Line

Long Haul to the south

Sta 87

� Marcellus ~3.5 Bcf/d

� Bifurcated flows with long haul to the south

� Utica ~1 Bcf/d

� ~1.6 Bcf/d South flow at Sta 200 and ~1.5

Bcf/d at 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

*2015 through July

MD

th/d

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2010 2011 2012 2013 2014 2015 YTD

Z6

Z5

Z4

Z3

Z2

Z1

ZL

Z0

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Winter Look Back

• Record peak send out at 10.5 MMDTH on Feb 19th– Record snow fall in Boston area. Cold temps in New England.

• Increased OFOs– Zones 5 & 6, 40 days (35 days in 13/14)

– Zones, 4 days (9 days in 13/14)

– 17 Meter Specific OFO’s for Power Plants (0 in 13/14)

• Increased Southbound flow– Westbound into station 219 at .9+ bcf/d

– Southbound through station 200 at 1.2+ bcf/d

– Increased Utica receipts

• No unexpected mechanical issues during Winter Season

• Volumes at Distrigas and Dracut on occasion; price dependent

8

Winter Summary - System Deliveries

2012-2013 2013-2014 2014-2015 % Change

LDC 1,830 2,046 2,087 +2%

Power 1,130 1,096 1,258 +15%

Interconnects 3,924 4,841 5,014 +4%

Other 572 61 58 -4%

TOTAL 7,455 8,044 8,417 +5%

volumes are MDth/d

9

-

200

400

600

800

1,000

1,200

1,400

1,600

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Zone 6

Zone 5

Zone 4

Zone 2

Zone 1

Zone 0

Winter Total System Power Deliveries

volumes are MDth/d

+36%

+17%

-19%-3%

+15%

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Cold New England Weather

200

400

600

800

1000

1200

1400

Nov Dec Jan Feb Mar

HD

Ds

Winter 2014/15

Winter 2013/14

Winter 2012/13

30 Year Average

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Winter New England Deliveries – Zones 5 and 6

2012-2013 2013-2014 2014-2015 % Change

LDC 1,324 1,467 1,511 +3%

Power 346 274 315 +15%

Interconnects 468 1,316 1362 +3%

TOTAL 2,137 3,057 3,187 +4%

volumes are MDth/d

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Winter North Supply Analysis - Zones 4, 5 & 6

Winter Period (Nov-Mar) Average MDth/d

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

09-10 10-11 11-12 12-13 13-14 14-15

Dracut

Distrigas

Shelton

Wright

Niagara

Marcellus

Utica

Rex

+70%

+15%+5%

+38%

+17%

Total Marcellus supply was

over 19 bcf/d this winter!

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Summer Summary

• Demand is up (vs previous summer)– Overall system - 8% higher

– Power Generation - 25% higher

• Market Area Supply continues to increase– Increase in both Utica and Marcellus Supply

• Increased Southbound Flows– Station 200 (Ohio) – 1.5 to 1.6 Bcf/d

– Station 860 (Tennessee) - 0.8 – 0.9 Bcf/d

– South Texas market remains strong

• Main drivers– Heat and Storage fill

– High level of system maintenance, repair, rebuild activity

• GETTING READY FOR WINTER

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Summer Total System Deliveries

2013 2014 2015 TD % Change

LDC 875 874 911 +4

Power 1,272 1,296 1,629 +25%

Interconnects 3,589 4,445 4,667 +4%

Other 401 56 52 -7%

TOTAL 6,137 6,671 7,259 +8%

volumes are MDth/d

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2009 2010 2011 2012 2013 2014 2015 TD

Zone 6

Zone 5

Zone 4

Zone 2

Zone 1

Zone 0

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Summer Total System Power Deliveries

volumes are MDth/d

+22%

+9%

+16%

-22% +2%

+25%

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Summer New England Deliveries – Zones 5 & 6

2013 2014 2015 TD % Change

LDC 570 573 575 +0.5%

Power 510 491 524 +6%

Interconnects 408 1,249 1,199 -4%

TOTAL 1,488 2,313 2,297 -0.5%

volumes are MDth/d

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0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2010 2011 2012 2013 2014 2015 TD

Dracut

Distrigas

Shelton

Wright

Niagara

Marcellus

Utica

Rex

Summer North Supply Analysis – Zones 4, 5 & 6

volumes are MDth/d

+52%

+13%+8%

+36%

+15%

Total Marcellus supply near

20 bcf/d this summer!

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Scheduled Maintenance

Remaining for 2015

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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

Zone 4 – October

ILI/Cleaning Pig

MLV 200-1 to 204-1 (10/15/2015)

MLV 200-2 to 204-2 (10/20/2015)

Interconnect

MLV 212-2 (10/2/2015 – 10/9/2015)

MLV 212-4 (10/12/2015 – 10/19/2015)(M)

ILI/Cleaning Pig

MLV 204-2 to 209-2 (10/13/2015 – 10/15/2015)

MLV 204-4 to 209-4 (10/27/2015 – 10/29/2015)

Station Maintenance

Sta. 321 (10/1/2015 – 10/8/2015)

Capacity of 1,625,000 reduced to 1,300,000 (seg. 321 FH)

Sta. 323 (10/13/2015 – 10/20/2015)

Capacity of 1,625,000 reduced to 1,375,000 (seg. 321 FH)

Maintenance Pig

MLV 319-1 to 321-1 (10/13/2015)(M)

MLV 319-2 to 321-2 (10/15/2015)

MLV 317-1 to 313-1 (10/20/2015)(M)

MLV 317-2 to 313-2 (10/22/2015)Station Maintenance

Sta. 204 (10/21/2015 – 10/25/2015)

Zone 5 – October

Unit Maintenance

Sta. 245 (8/11/2014 – 8/14/2014)

Station Maintenance

Sta. 241 (10/12/2015 – 10/16/2015)

Capacity of 1,030,000 reduced to 820,000 (seg. 245 FH)

Station Maintenance

Sta. 325 (10/1/2015 – 10/8/2015)

Capacity of 1,625,000 reduced to 1,300,000 (seg. 321 FH)

ILI/Cleaning Pigs

MLV 325-1 to 329-1 Re-Run (10/16/2015)

Capacity of 1,625,000 reduced to 1,300,000 (seg. 321 FH)

Zone 6 – October

Station Maintenance

Sta. 265E (9/19/2015 – 11/9/2015)

Hydrotest

MLV 261-1 (8/20/2015 – 10/12/2015) (M)

Capacity of 1,090,000 reduced to 735,000 (seg. 260 FH)

Unit Maintenance

Sta. 264 (10/19/2015 – 10/20/2015)

Capacity of 1,091,000 reduced to 800,000 (seg. 260 FH)

Zone 6 – November

Station Maintenance

Sta. 265E (9/19/2015 – 11/9/2015)

Maintenance Pig

Worcester Lateral/265A-100

(11/3/2015)

Maintenance Pig

Sta. 266A-100 (11/4 and 11/6)

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Station 245 HP Replacement

Main Line #1 Tie-in

with coating removed for cut

Compressor Building construction

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Loading magflux tool into launcher

Removing tool from receiver

Pigging

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Winter Readiness for TGP System

• Scheduled Maintenance– All routine compressor, pipeline and meter station maintenance in the Market Area shall be

completed by early November.

• Compression– Test run all compression units prior to winter season

– Field Operations will be on-site at compressor stations during significant winter events.

• Storage– Market Area Storage is on par to meet the storage level target for mid-November

• Pipeline– Maintain linepack targets by area

– Maintain throughput targets

– Maintain pressures for key areas

– Field Operations will be on-site at locations along the pipe during significant winter events

• Communication– Winter Forecasts are shared with Field Operations

– Daily Operational Con Calls

– Operational Discussions between ISO’s and Gas Control

– Winter Customer Meetings

- Ongoing dialogue between the Customers and Gas Control/Commercial Groups

- EBB Postings

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Scheduling Update

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• Elimination of Common Location Codes

(DRNs)

• Capacity Grid/Postings

• Nomination Timelines/Intraday Cycles

• Capacity Release

• Flowing Gas Data Set EDI Maps

• Code Values

• Notices/Offers to Purchase Release Capacity

NAESB Implementation Version 3.0, Order 809

Significant Changes

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Capacity Release Changes eff. April-1-2016

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NAESB Cycles eff. April-1-2016

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Winter Days – (%) Restricted

Restriction Point

Highly Utilized TGP Paths

Percentage Days Restricted

(November - March)

2013/2014

Sta. 200 30.46%

Sta. 245 100%

Sta. 261 30.46%

Sta. 267 2.65%

Sta. 315 BH 100%

Sta. 321 94.70%

MLV 336 50.33%

MLV 355 BH 70.20%

Sta. 1 BH 50.99%

Mahwah 49.67%

Rivervale 80.79%

Percentage Days Restricted

(November - March)

2014/2015

22.52%

100%

32.45%

5.29%

100%

94.71%

73.51%

5.96%

11.26%

64.24%

80.79%

Restrictions through 100% of IT services into a portion of SOP through

Volumes restricted between 750,000 and 1,250,000 Dths

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Summer Days – (%) Restricted

Restriction Point

Highly Utilized TGP Paths

Percentage Days

Restricted (April - Sept)

2015

Sta. 200 16.39%

Sta. 245 98.91%

Sta. 261 95.08%

Sta. 267 1%

Sta. 315 BH 64.48%

Sta. 321 60.11%

MLV 336 4.92%

MLV 355 BH 15.85%

Sta. 1 BH 48.64%*

Mahwah 95.08%

Rivervale 48.64%

Restrictions through 100% of IT services into a portion of SOP through

Volumes restricted between 500,000 and 950,000 Dths

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MARITIMES DRACUT SCHEDULED FLOWS

2013/14 vs 2014/15 (DTH)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

NOV DEC JAN FEB MAR

2013/14 2014/15

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DISTRIGAS SCHEDULED FLOWS

2013/14 vs 2014/15 (DTH)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

NOV DEC JAN FEB MAR

2013/14 2014/15

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Possible Scheduling Processes Implemented during Winter

• No delivery nominations allowed at Receipt Meters

• No receipt nominations allowed at Delivery Meters

• No meter bounces allowed at Power Plants

• Meters held to EPSQ

• Restriction locations adjusted as capacity utilization changes

• Limitations of Storage Services/Linepack Services

• Imbalance Warnings

• Daily OFOs

• Hourly OFOs

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Tennessee Gas Pipeline 24 Hour Contact List

Gas Control

24 hour and emergency

800-231-2800

Ganesh Venkateshan – Mgr.

713-420-2099

Cell –832-980-8296

Layne Sanders – Director

713-420-5024

Cell – 832-563-5024

Ray Miller – VP

713-369-9330

Cell – 713-206-8338

Transport and Storage Services

24 hour Scheduling Hotline

713-420-4999

Cathy Soape Hutton– 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

Ernesto Ochoa – Director

713-420-1734

Cell – 281-414-3823

Sital Mody – VP

713-420-7336

Cell – 832-643-0042

Dodson Skipworth- Acct Dir

713-420-2727

Cell – 713-823-7590

Becky Mack-Acct Dir

713-420-4656

Cell – 832-405-3135

Coralie Sculley-Acct Dir

713-420-6336

Cell-818-0411

Houston, TX Office

713-369-9000

1001 Louisiana St

Houston TX 77002

October 2015

Field Operations

Don Perkins– Ops Manager (NE

Area)

413-821-2022

Cell – 413-896-6097

Milton White– Ops Manager

(Nassau Area)

518-766-3611

Cell – 903-748-5041

Ron Bessette– Director

(Northeast)

860-763-6027

Cell – 413-313-4380

Tom Dender – VP

713-420-3833

Cell – 205-572-1549

Gary Buchler - VP

713-369-8463

Cell – 713-824-3904