a meaningful company
doing meaningful work
delivering meaningful results
                                                 ...
Cautionary Statement Regarding
                            Forward-looking Statements

This presentation includes forward-...
El Paso Asset Map
                                              Nile
                                              Delta
 ...
Costs Are Rising Across the Chain
Capex In Billions
   For a 655 MMcf/d project
                                         C...
NA Terminal Capacity Growth
Bcf/d

     20                                             Canaport
     18                   ...
Historical Load Factors
                   100%
                   90%
                   80%
                   70%
Utili...
Changes in Gas Flows
Major Flow Changes 2006–2016
                                                      Canada
(Bcf/d)
   ...
LNG Threats & Opportunities for El Paso
Opportunity
Threat
Threat/Opportunity




                                        8
LNG Threats & Opportunities for El Paso
Opportunity
Threat
Threat/Opportunity




                                        9
Southeast LNG Projects


                Sabine Pass              MS                                     Elba Island
     ...
GOM Infrastructure: Congestion & Micro Basis




                  Cameron       Kinder


    Golden Pass
                ...
Elba Infrastructure
                                                Update



a meaningful company doing meaningful work  ...
Elba Island & Associated Pipelines
   SNG
   Elba Express
   SNG Cypress
   CGT




Upon completion of downstream infrastr...
Elba Island LNG
                      Growing with Market Demand




                        Reactivated     Elba II    El...
SNG Cypress Project
                                          SNG
                                          FGT
Project sc...
Elba Express Project to SNG and Transco
       Transco Z4
      ~1175 MMcfd
                                      • Owned ...
a meaningful company
doing meaningful work
delivering meaningful results
                                                 ...
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EPWachoviaLNGConf_FINAL(Web)

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EPWachoviaLNGConf_FINAL(Web)

  1. 1. a meaningful company doing meaningful work delivering meaningful results Byron Wright Vice President, Corporate Development Long-term Outlook for North American Gas Market Wachovia LNG Conference November 13, 2007
  2. 2. Cautionary Statement Regarding Forward-looking Statements This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, including, without limitation, changes in commodity prices for natural gas, LNG and power; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; and other factors described in the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward- looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise. 2
  3. 3. El Paso Asset Map Nile Delta Brazil Sinai Gulf Egypt of Egypt Suez Rio de Janeiro Elba Island El Paso Pipeline Group El Paso E&P Company 3
  4. 4. Costs Are Rising Across the Chain Capex In Billions For a 655 MMcf/d project Capita SUPPLY ($1.5) l requ ireme nts de creas LIQUEFACTION ($1.5) e down stream TRANSPORTATION ($1.3) REGAS ($0.5) 2 to 5 years 3½ to 5 years 2 years Upstream costs have risen 30–50% in four years 3 to 3½ years PIPELINE ($0.1–0.3) STORAGE ($0.1–0.3) 1 to 2 years 4 Source: Wood Mackenzie
  5. 5. NA Terminal Capacity Growth Bcf/d 20 Canaport 18 Costa Azul Altamira 16 Northeast Gateway Golden Pass 14 Cameron 12 Sabine Pass Exp Sabine Pass 10 Freeport Gulf Gateway 8 Cove Point Exp 6 Cove Point Lake Charles Exp 4 Lake Charles Elba Isl Exp 2 Elba Isl 0 Everett LNG Imports 2006 2007 2008 2009 2010 5 Source: El Paso, PIRA
  6. 6. Historical Load Factors 100% 90% 80% 70% Utilization Rate 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 NA Regas European Regas Asian Regas Liquefaction 6
  7. 7. Changes in Gas Flows Major Flow Changes 2006–2016 Canada (Bcf/d) Declining exports -2.0 to U.S. -0.4 0.7 -1.2 -1.0 -0.5 2.8 1.5 3.4 2.9 0.6 4.7 Rockies Increasing supplies 4.0 leaving region 0.4 1.2 1.4 1.3 LNG 5.4 Expanding current facilities, Gulf Coast additions 0.8 7 Source: EEA/ICF International July 2007 Reference Case
  8. 8. LNG Threats & Opportunities for El Paso Opportunity Threat Threat/Opportunity 8
  9. 9. LNG Threats & Opportunities for El Paso Opportunity Threat Threat/Opportunity 9
  10. 10. Southeast LNG Projects Sabine Pass MS Elba Island 2.6 Bcf/d 4Q 2008 1.2 Bcf/d Existing GA +0.9 Bcf/d 2010–2012 AL Golden Pass Lake Charles 2.0 Bcf/d 1Q 2009 1.8 Bcf/d Existing LA TX Gulf LNG Freeport LNG 1.3 Bcf/d 2Q 2011 1.5 Bcf/d 1Q 2008 Cameron LNG 1.5 Bcf/d 4Q 2008 FL Port Dolphin Gulf Gateway 0.8 Bcf/d 2010? 0.5 Bcf/d Existing 10
  11. 11. GOM Infrastructure: Congestion & Micro Basis Cameron Kinder Golden Pass Lake Charles Sabine Pass 11
  12. 12. Elba Infrastructure Update a meaningful company doing meaningful work delivering meaningful results 12
  13. 13. Elba Island & Associated Pipelines SNG Elba Express SNG Cypress CGT Upon completion of downstream infrastructure development, Elba Island will be capable of flowing into: SNG’s Mainline to the Southeast, SNG’s Cypress Expansion to Florida; Elba Express to the Mid Atlantic; CGT to South Carolina 13
  14. 14. Elba Island LNG Growing with Market Demand Reactivated Elba II Elba III Expansion Elba Expansion Phase A Phase B In Service Dec. 2001 Feb. 2006 2010 2012 Base Send-Out 446 933 1,518 2,115 Peak Send-Out 675 1,215 1,755 2,115 Total Storage (Bcf) 4.0 7.3 11.5 15.7 14
  15. 15. SNG Cypress Project SNG FGT Project scope SCANA AGL (B’wick) • Phase I: 177 miles of 24quot; pipeline + 4 meters ($255 MM); 220,000 MMBtu/d (May 2007) • Phase II: Midpoint compression ($19 MM); 116,000 MMBtu/d JEA Brandy Branch (May 2008) FGT Jacksonville • Phase III: Space in Elba Express + 2 compressor stations + 12 miles of loop on FGT ($82 MM); 164,000 MMBtu/d (2009–2010) Progress FL 15
  16. 16. Elba Express Project to SNG and Transco Transco Z4 ~1175 MMcfd • Owned by Elba Express Company LLC. Transco Z5 ~1175 MMcfd – Wholly owned subsidiary of SNG – Standalone tariff, rates, and transportation service • Design capacity: 1,175 MMcf/d SNG-Wrens • Pipeline facilities ~750 MMcfd – 105 miles of 42quot; pipeline adjacent to SNG ROW from Port Wentworth to Wrens – 10 miles of 42quot; and 75 miles of 36quot; pipeline along greenfield route from Wrens to Transco – Compressor station approx. 50 miles north of Port Wentworth – Primary interconnects with SNG & Transco • Supported by 25+ year agreements with Shell (945,00 Mcf/d) and BG (up to 230,000 Mcf/d) Elba Express Pipeline • Total capex: ~$600 MM 16
  17. 17. a meaningful company doing meaningful work delivering meaningful results Byron Wright Vice President, Corporate Development Long-term Outlook for North American Gas Market Wachovia LNG Conference November 13, 2007

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