Pre-Bidders Conference

A G E N D A 1. Mexico s Energy Reform 2. CFE s Natural Gas Projects 3. Waha San Elizario Pipeline 4. Waha Presidio Pipeline 5. Telecommunications 6. Bidding Essentials 2

1. Mexico s Energy Reform The new law breaks the monopoly on power generation and marketing. Private firms will be able to participate in the power generation strengthening its competitiveness. The fuel chain in Mexico (i.e., production and marketing) for the generation of power will be open to general market. A new power and fuel market will flourish upon the mid-term, in particular the natural gas market. 3

2. CFE s Natural Gas Projects All natural gas projects of CFE are designed: To expand and reinforce Mexico s natural gas pipeline network utilized for generation of electric power. To improve Mexico s natural gas supply chain. To offer all Mexican end consumers a wider range of opportunities to meet their natural gas consumption needs at more competitive prices. 4

3. Waha San Elizario Pipeline C.O.D. : January 2017 San Elizario SOUTHWEST TEXAS Waha Basin Diameter: 42 Capacity (MMCFD): 1,475 Length (approx) : 225 Miles MAOP (psig): 1,440 5

3. Waha San Elizario Pipeline The Project will include: The development, construction and operation of a Header CFE Waha Header for 2.825 Bcf/d, with at least 10 interconnects to existing pipelines near the Waha Hub area that supply at least 130% of the maximum aggregated capacity of these pipelines (130%*2.825 Bcf/d). The development, construction and operation of a Pipeline with capacity of 1.475 Bcf/d from CFE Waha Header to United States Border with Mexico near San Elizario, Texas. Border crossing and permits to interconnect with a future pipeline that runs from San Isidro to Samalayuca, both located in the State of Chihuahua, Mexico. Minimum pressure of delivery at the international border at 1,145 psig. 25-year Transportation Service Agreement ( TSA ). At the end of the agreement, CFE and the Transporter will enter into a Joint Venture agreement and CFE shall own 49% of the equity. Fiber optic lines ( Fiber Optic Lines ) that will service the telecommunication needs of the pipeline, which will run parallel to it. Design, development, construction and operation of the Fiber Optic Lines must be included in the tariff of the TSA. 6

4. Waha Presidio Pipeline C.O.D. : March 2017 Presidio Waha Basin SOUTHWEST TEXAS Diameter: 42 Capacity (MMCFD): 1,350 Length (approx): 145 miles MAOP (psig): 1,440 7

4. Waha Presidio Pipeline The Project will include: The development, construction and operation of a pipeline with capacity of 1,350 Bcf/d from CFE Waha Header to United States Border with Mexico near Presidio, Texas. Border crossing and permits to interconnect with a future pipeline that runs from Ojinaga to El Encino both located in the State of Chihuahua, Mexico. Minimum pressure of delivery at the international border at 1,160 psig. 25-year TSA. At the end of the agreement, CFE and the Transporter will enter into a Joint Venture agreement and CFE shall own 49% of the equity. Fiber Optic Lines that will service the telecommunication needs of the pipeline, which will run parallel to it. Design, development, construction and operation of the Fiber Optic Lines must be included in the tariff of the TSA. 8

5. Telecommunications Communications between pipeline points and metering stations must be carried out through the Fiber Optic Lines. Real-time data Information about security and performance. Communication with CFE s natural gas operation headquarters in Mexico via web services. Real-time data Information about security and performance. Additional services for Fiber Optic Lines may be required by CFE. CFE will recognize a proportional increment to tariff for these additional services. 9

Asdfakd 6. Bidding Essentials Waha to San Waha to RFP Schedule * Elizario Presidio Send invitations to meeting with Bidders (Electronic) August 25, 2014 August 25, 2014 (Houston, Texas, Houstonian Hotel) September 9, 2014 September 9, 2014 RFP release (Houston, Texas, exact location TBD) September 17, 2014 September 17, 2014 Submission of Bidder questions (Electronic) October 1, 2014 October 1, 2014 Bidder question and answer session (Houston, Texas, exact location TBD) October 8, 2014 October 8, 2014 Publish questions and answers, if necessary release of revised RFP (Houston, Texas, exact location TBD) October 15, 2014 October 15, 2014 Submission of final proposals (Houston, Texas, exact location TBD) November 14, 2014 November 14, 2014 Announcement of winning bidder (Houston, Texas, exact location TBD) December 5, 2014 December 5, 2014 Execution of TSA (Mexico City, Mexico, exact location TBD) * All dates and requirements mentioned in this presentation may change subject to the final specifications of the corresponding RFP January 16, 2015 January 16, 2015 10

6. Bidding Essentials Commitment and Performance Bond Specific experience criteria to be met by the Bidders on development, construction, operation, permitting, routing (ROW s) and financing for similar natural gas transportation projects in the US Governing Law: State of Texas Language: English 11

6. Bidding Essentials Questions about the RFP (when released) must be sent by interested parties and registered Bidders to waha.pipelines@cfe.gob.mx. Questions must be sent by the date specified in the corresponding RFP. Questions will be answered electronically by CFE, which will be followedup by a Q&A Session in Houston, Texas as specified in the RFP. CFE s answers to one particular Bidders will be shared to all Bidders through CFE s website and will be emailed to all registered Bidders. 12

Development of Two Natural Gas Transportation Pipelines from September 9, 2014 The Houstonian Hotel Houston, TX. Guillermo Turrent Schnaas (CFE) Jesús Serrano Landeros (SENER) Javier Gutierrez Becerrril (CFE) Francisco de la Parra Díaz de León (CFE) Emilio Cosío Santamaría (CFE)