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el paso 032607_presentation

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el paso 032607_presentation

  1. 1. a meaningful company doing meaningful work delivering meaningful results The Natural Gas Pipeline Outlook March 2007 Jim Yardley – President, Pipeline Group Pipeline & Gas Journal/INGAA Pipeline Opportunities Conference March 26, 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 oil, natural gas, and power and relevant basis spreads; general economic and weather conditions in geographic regions or markets served by the company and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition; 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. Our Purpose El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner 3
  4. 4. El Paso Pipeline System Tennessee Wyoming Gas Pipeline Interstate Colorado Interstate Gas Cheyenne Plains Pipeline Mojave Pipeline Southern Natural Gas Elba Island El Paso LNG Natural Gas Mexico Florida Gas Ventures Transmission (50%) • 19% of total U.S. interstate pipeline mileage • 23 Bcf/d capacity (16% of total U.S.) • 16 Bcf/d throughput (28% of U.S. consumption) • Over $2 billion in committed growth projects 4
  5. 5. Pipeline Industry Today: Some “Givens” • Meaningful work – Delivering gas safely and reliably • Increasing gas demand • Huge infrastructure needs • Aging workforce and assets • GHG policy debate intensifying 5
  6. 6. Challenge #1: Will there be supply for the U.S.? Bcf/d 50 45 40 35 LNG able a Avail d Canad Supply 30 ly Supp tates an S nited 25 for U 20 Asia (including 15 India) LNG Consumption 10 European 5 Mexico & LNG Consumption Caribbean 0 LNG 2005 2006 2007 2008 2009 2010 2011 2012 Consumption 6
  7. 7. Challenge #2: How will infrastructure get built? Timely? Manpower? Cost? $900 2006 $850 2005 $800 2004 $450 2003 $0 $200 $400 $600 $800 $1,000 Steel Plate Price per Net Ton Source: Berg Steel Price (X-70 Plate) 7
  8. 8. Challenge #3: What will be gas’ role in GHG policy? U.S. GHG Emissions by Fuel and Power Plant Sector - 2004 CO2 Emissions MMT CO2eq 1,000 2,500 Reallocated Electricity HFC, PFC, SF6 (1) Methane 2,000 800 N2O CO2 Emissions (kg/MW-hr) Non-Energy CO2 CO2 from Coal CO2 from Oil 1,500 600 CO2 from Gas 1,000 400 200 500 0 0 Industrial Transportation Power Residential Commercial Agriculture PC IGCC NGCC Sector 1 Range depending on technology Source: 2005 Electric Power Research Institute, Inc. 8
  9. 9. Challenge #4: We need to do all this safely • Pipeline integrity programs • Pipeline damage prevention 9
  10. 10. Gas Pipelines Today – March 2007 • Big opportunities • Big challenges 10
  11. 11. a meaningful company doing meaningful work delivering meaningful results The Natural Gas Pipeline Outlook March 2007 Jim Yardley – President, Pipeline Group Pipeline & Gas Journal/INGAA Pipeline Opportunities Conference March 26, 2007

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