Transcript Name of Speaker Title of Speaker

Continental Connector
WPA
presented by
Laine Lobban
Manager, Business Development
El Paso Western Pipelines
October 25, 2005
Connectivity / Take-Away
Take-Away
Capacity (MMcf/d)
Pipeline
ANR
1,400
Tennessee Gas
4,150
Texas Gas
2,000
Texas Eastern
2,500
Trunkline
1,600
CenterPoint Energy MRT
730
Columbia Gulf
2,400
Florida Gas
1,900
Natural Gas Pipeline
1,800
Panhandle Eastern
1,500
Southern Natural Gas
3,000
Transco
4,000
TOTAL
26,980
3
Project Description
Opal to Southeast
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Aggregates Wyoming gas through existing El Paso infrastructure with minimal new
facilities
First 600 MDth/d to Greensburg at favorable rate
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1 to 2 Bcf/d expansion from mid-continent to southeast
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Does not require large commitments – can expand for 150 Mdthd
Rate is not less favorable for small shippers
Rampable with growth; avoids stranded demand charges
Project does not have to be supported entirely by Wyoming producers or State of
Wyoming
Direct access uses existing El Paso pipeline infrastructure from Opal, Wind River,
Wamsutter, and Powder River
Earmarked production is from Wyoming, not Colorado
42” pipe
Highest growth market in U.S.
Anchored by 500 MDth/d+ commitments from mid-continent
Predominately existing mid-continent production, which will alleviate Rockies basis
Late 2007 in-service to Greensburg, mid 2008 in-service to Perryville and Pugh, Alabama
Not an end-to-end Greenfield project, so timing delays minimized and environmental
impacts much less
Fewer regulatory and environmental issues to delay or deter project or strand shipper at
intermediate delivery points
4
Projected North American Demand
Western
Canada
NW and
Alaska
6.3
7.2
7.7
Bcf/d
5.3
6.4
7.3
Eastern
Canada
2.5
2.7
3.1
4.0
4.2
4.9
3.8
4.7
5.2
3.7
4.1
4.7
Maritimes
and
Northeast U.S.
9.0
10.1
11.7
10.5
10.9
11.6
8.7
11.1
14.4
Total
2004
72.8
2009
82.2
2014
93.6
14.1
14.6
16.2
Mexico
5.0
6.2
7.0
Source: El Paso
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Project Summary
►
Expecting to complete transportation letter agreement
for commitment from mid-continent of 500 MDth/d this
week
– Primarily existing production
– Will free up capacity from Greensburg on existing
pipes
– Will alleviate Rockies basis issue minimum of 1
year faster than alternatives at less cost to Rockies
producer
►
Project utilizes existing infrastructure through most of
route
6
Project Schedule
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Preliminary engineering complete
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NEPA pre-filing starting this week
–
NEPA scope much smaller than cross country Greenfield project
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Open season on-going
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Rates for different segments are established
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Anticipate final agreements in January
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FERC filing in late 2006 for entire project
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Avoids risk of phased filing approach where project could stall at
intermediate delivery points
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Start construction in spring 2007
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In-service to Greensburg late 2007
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In-service to Perryville and Pugh mid 2008
7
Project – One Other Consideration
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Alaska Pipeline has stepped up horizon for delivery
to U.S. given U.S. price levels
– 3 to 3.5 Bcf/d pipeline; 35 Tcf of recoverable gas
– Producers are currently negotiating agreement with
Alaska
– Would follow with NEPA work in preparation of filing
applications to Canada and U.S. Federal regulatory
agencies
– Will enter through Northwest, Chicago, and
Northeast
– Estimated 2012 in-service timeline per recent report
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Questions?
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Contact:
– Craig Coombs
– Laine Lobban
– Ed Miller
719-520-4387
719-520-4344
719-520-4305
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