TransGas General Overview

TransGas General Overview

TransGas General Overview TransGas Facilities Many Islands Pipe Lines (Canada) Limited TransGas and Adjacent Systems Primary Business Overview The Saskatchewan Market TransGas Energy Pool Storage

TransGas Facilities An integrated natural gas transmission and storage company Connecting supply on the West to move through the Province Storage can provide over 60% of peak winter day need Connected to supply in Alberta, TransCanada Mainline and the U.S.

TransGas Facilities Close to 13,900 kilometres of high pressure pipe 22 compressor stations with 82,250 horsepower compression TransGas Facility Map Beacon Hill Flin Flon Transports 239 PJ annually LLoydminster North Battleford St. Louis Prince Albert Melfort Natural Gas Storage Service of 50 PJ capacity and 806 TJ/d deliverability Including expansion into 2012 Hatton Unity Coleville Bayhurst South Bayhurst Success Piapot Landis Asquith Prud'Homme Saskatoon Rosetown Chaplin Swift Current Loreburn Moose Jaw Regina Melville Yorkton Moosomin Shaunavon Weyburn Estevan

Many Islands Pipe Lines (Canada) Limited Many Islands Pipe Lines (Canada) Limited Facility Map NEB regulated affiliate that owns pipelines crossing the Saskatchewan border. Provides interconnections with TransCanada Mainline, NGTL, WBI, Havre Pipelines, and Swan Valley Gas. Incremental tolling structure; however, tolls for receipt connections to the TransGas system are rolled into the TransGas toll. 9 Alberta border crossings. Alberta 9 1 2 3 4 5 6 7 8 TransGas Legend High- Pressure Gas Transmission Lines High- Pressure Lines (6" and larger) Areas of Major Gas Reserves TCPL Pipeline Foothills Pipeline Beacon Hill Apache Compressor Station Meadow Compressor Station & Storage Lake Prince Albert North St. Louis Battleford Melfort Unity Prud'homme Asquith Landis Saskatoon Coleville Rosetown Loreburn Bayhurst South Regina Bayhurst Success Chaplin Moose Jaw Swift Current Hatton Piapot Shaunavon MIPL (C) L 1. Cold Lake - Beacon Hill 2. Bronson North 3. Bronson Lake 4. Frog Lake 5. Marwayne 6. Lloydminster 7. Unity 8. Esther / Smiley 9. Midcontinent 10. Shaunavon 11. Steelman Portal 12. Swan Valley 12 Yorkton Melville Moosomin Weyburn Manitoba 10 a 10 b Montana Estevan 11 North Portal North Dakota Updated: Jan. 2, 2009 W:/TSPCON/System Planning/System Operation/MIPL/MIPL Dwgs Jan 209.ppt

TRANSGAS and ADJACENT PIPELINE SYSTEMS Hudson Bay ALBERTA SASKATCHEWAN MANITOBA TCPL NOVA TransGas Legend High-Pressure Gas Cold Lake Primrose Lake Transmission Lines High Pressure Lines (6" and larger) Beacon Hill Meadow Lake Edmonton Lloydminster Paynton Prince Albert TCPL Pipeline Foothills Pipeline Ltd. MIPL (Canada) LTD. Unity Landis Prud'homme Saskatoon SVGC Compressor Station Compressor Station & Storage Facility Ontario Calgary Bayhurst Loreburn Yorkton B.C Pacific Gas Transmission Co. WASHINGTON IDAHO Montana Power Co. Piapot Foothills Pipeline Shaunavon Swift Current Monchy Havre Pipelines Northern Border Pipeline Co. MONTANA Regina Estevan Moosomin North Portal Manitoba Hydro NORTH DAKOTA SOUTH DAKOTA Williston Basin Interstate Winnipeg TCPL Emerson Great Lakes Transmission Mid-Western Gas Transmission Kenora Dryden MINNESOTA Lake Superior w:\cust\tania\1999\pwrpnt\maps\adjmap.ppt

TransGas Energy Pool

Firm Storage Service. Capacity 50 PJ 806 TJ/d Including expansion into 2012 Beacon Hill Pierceland Paynton Energy to Store #2 Expansion 9.5 PJ Firm Volume 88 TJ/d Deliverability TransGas Storage Facilities Meadow Lake STORAGE FACILITY STORAGE FACILITY WITH EXPANSION PLANNED CAPACITY INCREASE NO CAPITAL North Battleford St. Louis Prince Albert Melfort N Unity Landis Asquith Saskatoon Prud'homme SVGC 27 Caverns 2 Fields @ 8 production/ injection facilities Hatton Coleville Rosetown Bayhurst South Bayhurst Pennant Success Piapot Swift Current Shaunavon Foothills Loreburn Chaplin TCPL Moose Jaw Regina Melville Alliance Weyburn Yorkton Moosomin Estevan WBI

TransGas Design Storage Volume and Deliverability 2001 2012 60 900 806 Storage Capacity (PJ) 50 40 30 20 512 30.8 512 30.8 512 30.8 512 30.8 586 32.0 586 32.8 609 35.3 679 37.9 717 39.4 744 42.7 744 44.0 48.6 800 700 600 500 400 300 Storage Deliverability (TJ/d) 200 10 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 Contracted Storage Volume Contracted Storage Deliveability

The Saskatchewan Market Industrial TransGas serves Industrial (101 large and 154 small industrials and commercial meters) 153 PJ/year Examples include: Electric Generation, Potash, Fertilizer, Ethanol, Oil, Manufacturing and Processing Power Potash Upgraders Ethanol

The Saskatchewan Market Other Residential and Commercial, over 352,000 Customers 62 PJ/year Delivered by the Distribution Utility Rural Commercial Residential Resorts Natural Gas Marketers, Producers and Consumers doing business at the TransGas Energy Pool

TransGas Addressing Change TransGas Key Business Drivers Supply and Demand Changing Balance between the two

TransGas Key Business Drivers S U P P L Y The volumes of natural gas receipts onto the transmission system and deliveries from the transmission system are affected by: Volumes of natural gas production Discovery of new reserves Development of existing reserves though natural gas well drilling programs Economics of natural gas production in Saskatchewan versus other jurisdictions Consumption levels by end-use customers New end-use customers D E M A N D

Saskatchewan Gas Well Drilling 2500 2000 1500 1000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2009 and 2010 both saw a sharp drop in the number of new wells drilled comparatively. 2011 is expected to have similar results to 2010.

Saskatchewan Receipts 2010 Saskatchewan production averaged 468 TJ/d at 238 receipt points.

Demand Growth 2011 Saskatchewan Land Sales Potash Industry Expansions Underway Natural Gas Fired Power Generation Enhanced Oil Recovery Saskatchewan Sustained Economy

Supply vs. Demand (1982 2020) Annual Volume (PJ) 350 300 250 200 150 100 50 Actual Forecast 0 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Years TransGas Supply Intra Saskatchewan Load

Meeting Saskatchewan s Supply Requirements Alberta Interconnections North System Direct to NGTL Cold Lake Unity South System Empress via TransCanada Mainline McNeil via Foothills Pipeline

Alberta Interconnect Constraints The ability to move gas South to North is a challenge: System built to move gas North to South Significant increase in North System loads Significant decrease in North System supply If we could have the new Alberta receipts fill up the north interconnection points, future capital additions would be minimized.

Alberta Receipt Review Have been working over the past two years on the commercial aspects of Alberta supply with the TransGas Customer Dialogue Group a forum for information exchange with TransGas customers. The discussions started fairly general but more recently have focused on a Nova Inventory Transfer (NIT) to TEP service in combination with Empress Receipts.

NIT to TEP Receipt Service TransGas will contract for the capacity with NGTL to move the gas to the TransGas system. TransGas will manage the flow of gas to the various border points to optimize system operations and minimize net costs. By TransGas holding the NGTL service there is greater assurance that this capacity can be maintained long term and potentially increased.

Empress Receipt Expansion Recommended: 47 km NPS 16 130 TJ/d incremental capacity May 2012 in-service (excluding river crossing) NPS 10 NPS 12 South Saskatchewan River Empress McNeil Bayhurst I NPS 12 Apache TCPL Alberta Saskatchewan NPS 12 NPS 16 Foothills

TransGas Services & Satisfaction Services Tariff and Other Satisfaction 2010 Customer Satisfaction Results

Services T A R I F F Receipt Delivery Export Storage Elevated Pressure Service Low Heat Value Processing Compression & Gathering

Coleville Location

Coleville Commercial Services TransGas 14 Gathering System Coleville Site Process Plant C C Liquids High Pressure Transmission System

Customer Survey In its 2010 Customer Satisfaction Survey, TransGas received an overall mean rating score of 4.65 out of 5.00.

Overall Satisfaction with TransGas Overall Satisfaction Key Account Management Customer Services Administration & Facilities Requests 93% 2010 2009 97% 98% 94% 96% 93% 94% 89% Key Account Management Customer Service Administration Facilities Requests