1

Pipeline Operations Update

October 8, 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

3

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

6

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

7

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

– Southbound flow on 100 and 500 lines

• No significant mechanical issues during Winter Season!

• Increased volumes at Distrigas and Dracut

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

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

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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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%

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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

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

volumes are MDth/d

+52%

+13%+8%

+36%

+15%

Total Marcellus supply near

20 bcf/d this summer!

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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%

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Scheduled Maintenance

Remaining

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EBB Website

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Impact Report – Next Week Outages

Segment

Design Capacity

Available Capacity

& Amount

reduced by

23

Impact report – Monthly Report

Zone 0 and L – October

Station Reversal

Sta. 32 (7/1/2015 - 11/15/2015)

Hydrotest

MLV 25-1D to 26-1 (9/8/2015 - 10/23/2015) (M)

Hydrotest

MLV 5-1 to 9-1 (10/26/2015 – 12/20/2015)

Capacity of 692,000 reduced to 550,000 (seg. 109 BH) (M)

Force Majeure

MLV 403-1 to 404-1 (8/3/2015 - 11/30/2015)

Capacity of 240,000 reduced to 120,000 (seg. 409 BH) (M)

Hydrotest

MLV 4-3 to 9-3 (8/16/2015 - 10/19/2015)

Capacity of 692,000 reduced to 370,000 (seg. 109 BH) (M)

Hydrotest

MLV 31-3 to 33-3 (9/1/2015 - 10/31/2015)

Capacity of 1,256,000 reduced to 350,000 (seg. 132 FH)

MLV 32-1D to 33-1 (11/1/2015-12/20/2015)*tentative

Capacity of 1,256,000 reduced to 400k/700k (seg. 132 FH)

Zone 1 – October

Station Reversal

Sta. 63 (6/15/2015 - 11/15/2015)

Hydrotest

MLV 843-1 (9/1/2015 - 10/21/2015)(M)

Capacity of 223,000 reduced to 0 (seg. 834 BH)

*can still flow north and south of this point

Pipe Replacement/Hydrotest/Valve Replacement

*Various valve sections on the 500 lines

Segment 548 BH (at MLV 555)

Capacity of 1,578,000 reduced to 1,055,000

(9/26/2015 – 10/15/2015)

Capacity of 1,578,000 reduced to 830,000

(10/15/2015 – 10/30/2015)

Zone 2 & 3 – October

Station Reversal

Sta. 110 (3/15/2015 - 10/31/2015)

Capacity of 1,829,000 reduced to 1,500,000 (seg. 187 BH)

Anomaly Remediation

MLV 96-1D to 106-1S (5/4/2015 - 11/30/2015)

MLV 87-3 to 96-3 (10/5/2015 - 10/31/2015)

Station Reversal

Sta. 96 (4/6/2015 - 10/16/2015)

Capacity of 1,829,000 reduced to 1,500,000 (seg. 187 BH)

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)

Maintenance Pig

Sta. 266A-100 (10/15/2015)

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 0 and L – November

Station Reversal

Sta. 32 (7/1/2015 - 11/15/2015)

Hydrotest

MLV 5-1 to 9-1 (10/26/2015 – 12/20/2015)

Capacity of 692,000 reduced to 550,000 (seg. 109 BH) (M)

Force Majeure

MLV 403-1 to 404-1 (8/3/2015 - 11/30/2015)

Capacity of 240,000 reduced to 120,000 (seg. 409 BH) (M)

Hydrotest

MLV 32-1D to 33-1 (11/1/2015-12/20/2015)*tentative

Capacity of 1,256,000 reduced to 400k/750k (seg. 132 FH)

Zone 1 – November

Pipe Replacement/Hydrotest/Valve Replacement

*Various valve sections on the 500 lines

Segment 548 BH (at MLV 555)

Capacity of 1,578,000 reduced to 895,000

(11/1/2015 – 11/15/2015)

Zone 2 & 3 – November

Station Reversal

Sta. 106 (TBD)

Anomaly Remediation

MLV 96-1D to 106-1S (5/4/2015 - 11/30/2015)

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

35

At Compressor Building

In the Yard

Use of Hydrovac

36

Station 114 Reversal Project

View of Yard Piping New Header

New Scrubber

37

Loading magflux tool into launcher

Removing tool from receiver

Pigging

38

Caliper Pig Received

Caliper Pig Pre-Launch

Difficult Operations at Times

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Winter Readiness

• 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

40

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

42

Capacity Release Changes eff. April-1-2016

43

NAESB Cycles eff. April-1-2016

44

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

Danny Ivy - VP

713-369-9311

Cell – 713-829-2761

Ray Miller – VP

713-369-9330

Cell – 713-206-8338

Transport and Storage Services

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

Ernesto Ochoa – Director

713-420-1734

Cell – 281-414-3823

Sital Mody – VP

713-420-7336

Cell – 832-643-0042

Norman Holmes - VP

713-420-4442

Cell – 205-901-0456

Kim Watson – President

713-369-3229

Cell – 713-204-5423

Field Operations

Ron Bessette– Director (Northeast)

860-763-6027

Cell – 985-209-4478

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

205-325-3883

Cell – 7205-572-1549

Gary Buchler – COO GAS Pipelines

713-369-8463

Cell – 713-824-3904

Colorado Springs, CO Office

713-420-2600

Two North Nevada Ave

Colorado Springs, Co 80903

Birmingham, AL Office

713-420-2600

569 Brookwood Village St

Birmingham, AL 35209

Downers Grove, IL Office

630-725-3000

3250 Lacey Rd Suite 700

Downers Grove, IL 60515

Houston, TX Office

713-369-9000

1001 Louisiana St

Houston TX 77002

October 2015