KM Freedom Pipeline Project An Attractive Oil Transportation Option to the West Coast Greg Ruben, Vice President Kinder Morgan West Region Pipelines DUG Conference, Permian Basin April 2-4, 2013 Fort Worth, Texas 1
Privileged and Confidential Cautionary Language Regarding Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly…
Presentation Topics Kinder Morgan Asset Footprint Oil Market Fundamentals KM Freedom Pipeline KM Freedom Pipeline Open Season Project Benefits Questions 3
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Crude oil production, particularly from tight oil plays, rises sharply over the next decade. The advent and continuing improvement of advanced crude oil production technologies continue to lift projected domestic supply. Domestic…
Assuming 95 per barrel for Brent going forward, peak production from West Texas approaches 2.5 million BPD, an incremental change of nearly 900,000 BPD over the 2012 level Other crude oil supplies that could source KM Freedom PL…
U.S. oil production is growing significantly, displacing imported barrels while overall consumption is declining. Growth of 1.1 million BPD 2013-2023 Source: EIA 2012 Long Term Energy Outlook and KM Analysis 7
KM Freedom Pipeline Overview Capacity: Up to 400,000 Bbl/d Viable at 250,000 Bbl/d of firm commitments Expected In-Service Date: Q4 2016 Project Scope: Conversion of 604 miles from gas service to oil Return to service of 124 miles of…
KM Freedom Pipeline California Oil Pipeline Grid & Refineries SF Bay Area 450 thousand BPD pipeline capacity from San Emidio 785 thousand BPD refining capacity Shell, Tesoro, Valero, Chevron, Phillips 66 Los Angeles 400 thousand…
KM Freedom Pipeline Wink, Texas Area Oil Pipelines Capacity Pipeline Status In-Service Path (TBD) Plains Basin Existing 450 N/A Permian to Cushing Sunoco West TX Gulf Existing 345 N/A Permian to Longview Plains Centurion Existing…
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KM Freedom Pipeline Open Season Kinder Morgan is conducting a binding open season to determine industry interest in the development of an oil pipeline to transport crude oil from the Permian Basin to serve the refining complexes of…
KM Freedom Pipeline Open Season Construction of the KM Freedom Pipeline will consist of the following major components: Conversion to crude oil service of approximately 740 miles of existing natural gas pipeline currently owned by…
Agency and Public Outreach Meetings Ongoing Route Selection and Permit Preparation Ongoing through December 2013 Open Season April 2, 2013 Begin construction of crude oil facilities and EPNG replacement facilities by First Quarter 2016…
KM Freedom Pipeline Benefits Piped WTI carbon intensity (CI) is lower than the CI of the California refiner average crude slate Lower CI than Bakken crudes Lower CI than WTI by rail Can displace other higher CI crudes Reduces…
Why KM Freedom Pipeline Why Now The basis for this project is compelling for pipeline, producer and refinery economics. The Permian oil production curves show strong forward growth Enhances Permian producer transportation options…
Greg Ruben V.P. Business Development 719-520-4870 Gregory_Rubenkindermorgan.com Tom Dobson Business Development Account Director 719-520-4606 Tom_Dobsonkindermorgan.com 17
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