2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams

 
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
WE MAKE ENERGY HAPPEN

2018 Spring Update                  NYSE: WMB
                                    williams.com
Customer Service
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Forward-looking Statements

> The reports, filings, and other public announcements of Williams Partners L.P. (WPZ) and Transcontinental Gas Pipe Line Company, LLC (Transco) may
   contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking
   statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
   amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act
   of 1995. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,”
   “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,”
   “assumes,” “guidance,” “outlook,” “in service date” or other similar expressions. These forward-looking statements are based on management's beliefs and
   assumptions and on information currently available to management and include, among others, statements regarding:
       –   Our and our affiliates future credit ratings;
       –   Amounts and nature of future capital expenditures;
       –   Expansion and growth of our business and operations;
       –   Financial condition and liquidity;
       –   Business strategy;
       –   Cash flow from operations or results of operations;
       –   Rate case filings;
       –   Seasonality of certain business components
       –   Natural gas, natural gas liquids, and olefins prices, supply, and demand; and
       –   Demand for our services
> Forward-looking statements are based on numerous assumptions, uncertainties and risks that could cause future events or results to be materially different
   from those stated or implied in this presentation. Many of the factors that will determine these results are beyond our ability to control or predict. Specific
   factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:
        – Availability of supplies, market demand, and volatility of prices;
        – Inflation, interest rates, and fluctuation in foreign exchange rates and general economic conditions (including future disruptions and volatility in the
           global credit markets and the impact of these events on customers and suppliers);
        – The strength and financial resources of our competitors and the effects of competition;
        – Whether we are able to successfully identify, evaluate and execute investment opportunities;
        – Our ability to acquire new businesses and assets and successfully integrate those operations and assets into our existing businesses as well as
           successfully expand our facilities;
        – Development of alternative energy sources;
        – The impact of operational and developmental hazards and unforeseen interruptions;
        – Costs of, changes in, or the results of laws, government regulations (including safety and environmental regulations), environmental liabilities,
           litigation, and rate proceedings;

                                                                                                                                                                      2
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Forward-looking Statements (cont’d)

        – Williams’ costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;
        – Our allocated costs for defined benefit pension plans and other postretirement benefit plans sponsored by our affiliates;
        – Changes in maintenance and construction costs;
        – Changes in the current geopolitical situation;
        – Our exposure to the credit risk of our customers and counterparties;
        – Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally-recognized
          credit rating agencies and the availability and cost of capital;
        – The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;
        – Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities;
        – Acts of terrorism, including cybersecurity threats and related disruptions;
        – Additional risks described in our filings with the Securities and Exchange Commission (SEC)
>   Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution
    investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or announce publicly the
    result of any revisions to any of the forward-looking statements to reflect future events or developments.
>   In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this
    presentation. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon
    changes in such factors, our assumptions, or otherwise.
>   Investors are urged to closely consider the disclosures and risk factors in WPZ’s and Transco’s annual reports on Form 10-K filed with the SEC on Feb. 25, 2015,
    and each of our quarterly reports on Form 10-Q available from our offices or, in the case of WPZ, from our websites at www.williams.com and
    www.investor.williams.com

                                                                                                                                                                            3
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Commercial Operations - Customer Services

                                                     Gary Duvall
                                                    VP Transco
                                                    Commercial

                                                   Hector Alatorre
                                                      Director
                                                  Customer Services

       Keith Higginbotham                           John Cassapo                              Suzanne Heiser
                                   Bill Eiser                         Martha Janousek
           Manager                                                                            Laurie Catlett
                                                                         Manager
                                                                                                  Leads
                                   Business           Business
                                Development –      Development –      Customer Service
        Customer Service        Production Area     Market Area          Contracts            Transportation
                                                                                                Marketing

                                                                            Paul Prodoehl
               Toi Anderson
                                                                            Celyna Ebohon
              Cindy Hungate
                                                                          Laarni Hernandez
              Andrea Beltran
                                                                            Karen Gallardo
               James Corley
                Liz Hughes
                                                                          Contract Analysts
                 Sean Xin
             Customer Service
             Representatives

                                                                                                               4
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Strategic Asset Position

                            CONNECTING THE BEST
                                 SUPPLIES
                               Marcellus-Utica,
                                 Gulf Coast
                            TO THE BEST MARKETS
                            New York City, Washington
                            D.C., Philadelphia, Florida,
                               Atlanta, LNG export

                           • Nations largest-volume interstate
                             pipeline system
                           • 9,700 miles of pipeline with 14.98
                             MMdth of gas per day for system-
                             wide delivery capacity (As of
                            12/31/17)
                           • 50 compressor stations, four
                             underground storage fields and
                             one LNG storage facility
                           • Competitively positioned between
                             strong supply and demand areas
                             along eastern seaboard

                                                             5
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Transco Peak Day Deliveries and System Capacity

Note: Includes all system deliveries and all Zones.

                                                      6
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Weather

   Location     January 4, 2018   January 5, 2018   January 6, 2018
                  High / Low        High / Low        High / Low
    New York        29 / 19            19 / 9            13 / 6

    Charlotte       34 / 18            36 / 8           34 / 12

     Atlanta        35 / 20           38 / 16           39 / 20

     Tampa          56 / 38           60 / 35           61 / 41

                                                                      7
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Peak Day Delivery Quantities by State

         3,500

         3,000

         2,500
MMscfd

         2,000

         1,500

         1,000

          500

            0
                 TX   LA   MS   AL       GA      SC        NC      VA   MD   PA   NJ   NY

                                     1/5/2018   1/8/2017   1/18/2016

                                                                                            8
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Takeaways From Winter &
    Opportunities Going Forward
>   Transco system was stressed, but performed well. Many teams worked long hours managing equipment
    issues, storage changes, gas scheduling activity, etc.

>   Peak day occurred on a Friday which allowed the system to recover over the weekend.

>   OFO issuance and limitations on availability of non-primary firm transportation helped manage capacity
    and system suppliers performed well given the temperatures and potential production freeze off issues.

>   The Transco system continues to expand and has transformed into a bi-directional system, highlighting the
    need for additional collaboration between Pipeline Control and Operations and customer activity driving
    dynamic system operations, requiring frequent operating changes.

>   Large deliveries dependent on a fixed set of assets requiring timely and frequent communication and
    coordination, both internal and external.

>   Increase opportunities for dialogue and collaboration between Pipeline Control and customers, better
    understanding their needs and enhancing operating relationships.

>   Opportunities for additional pipeline control focus and engagement on near and longer term system
    outage and modernization needs.

                                                                                                                9
2018 Spring Update Customer Service - WE MAKE ENERGY HAPPEN - Williams
Supply / Demand Forecast: 2016-2021

                                                               Anadarko, Arkoma and Appalachian Basin

                                                                                                                    +15
                                                                                                                   23  38
                    +1                                                                                 +1                        +2
                14  15                                                                            11  12                      15  17
                                      +1
                                  13  14

                                                                            +3
                                                                        35  38                        +10              +3
                                                                                                     26  36          12  15
          Regional Production change,
          2016 to 2021 (Bcf/d) (1)
          Regional Demand change,
          2016 to 2021 (Bcf/d) (1)

(1) Size of bubble indicates magnitude of 2021 production or demand
Source: Wood Mackenzie 1H 2017, excludes impact of net Canadian imports.
Data contained in this slide is property of Wood Mackenzie. Per Williams’ agreement, data may only be used for
individual customer meetings unless prior consent is received. Do not duplicate or alter information in any way.

                                                                                                                                          10
Receipt
       or
                                            Volume (MMscf)
                                   Receipt or Receipt / Delivery / Net                          Supply Overview
     Lateral               04-01-2016 to               04-01-2017 to
                                                                              % Chg
                            03-31-2017                  03-31-2018
     McMullen               61 / (17) / 44                61 / (33) / 28       (36%)

       CTGS                204 / (96) / 108            164 / (29) / 135        25%                                                            Leidy
       SWLA                 105 / (80) / 25           82 / (852) / (770)      (3180%)                                                                       Lambertville

      CENLA                 102 / (5) / 97              121 / (9) / 112        15%                                                                                  Rivervale
                                                                                                                               Lower Chanceford
  Zone 3 M/L Total               751                          1,503            100%
                                                                                                                            Pleasant Valley
       SELA                 185 / (92) / 93             138 / (52) / 86        (8%)
                                                                                                                                                      Zone 6
   Sta85 Receipts               2,110                         2,399            14%                                            Nokesville
    Mobile Bay           559 / (1,333) / (774)       517 / (1,198) / (681)     (12%)
                                                                                                                   Boswells Tavern
   Black Warrior                  25                           31              23%

   Cascade Creek                 109                           125             15%

  Boswells Tavern                176                           95              (46%)                        Cascade Creek

     Nokesville                   68                           66              (4%)
                                                                                                                                       Zone 5
Pleasant Valley/Cove              75                           66              (12%)
       Point
 Lower Chanceford                828                           846              2%
                                                                                        Sta85 Receipts
    Lambertville                  67                           72               7%                                                  Peak Day Information
     Rivervale                   213                           209             (2%)                          Peak Day deliveries to Cheniere affect SWLA and
                                                                                                   Zone 4     Mainline interconnects in Zone 3.
       Leidy             2,976 / (972) / 2,004       3,107 / (983) / 2,124      6%
                                                                                           Black Warrior     Station 85 receipts at 3.3 BCF.
                                                                     Zone 3                                  Mobile Bay flow southward peaks as Florida sees
                                                 Zone 2
                                                                                                              peak conditions.
                                                                                           Mobile Bay
                                                                                                             Large increases in numerous mid Atlantic receipts as
                          Zone 1                                                                              gas demand rises in Zone 5.
              McMullen
                                                          SWLA                                               Large decrease in deliveries to Elba.

                                                                               SELA
                                                                                                             Cove Point Pipeline sends over 500 MMCF to
                                                                 CENLA
                                              CTGS                                                            Transco.
                                                                                                             Leidy receipts at over 4.0 BCF
Market Transitions Drive More Volume Southward

                                                 Sta090

                                                               Northbound Flow
                                                 Sta130

                                                 Sta065

                                                 Sta165
                                                 Sta030

                                                               Southbound Flow
                                                 Sta195

                                                 Sta045

                                                          12
Transco Deliveries to End Users by State

      2,000,000

      1,800,000

      1,600,000

      1,400,000

      1,200,000
Dth

      1,000,000                                  2013
                                                 2014
       800,000                                   2015
                                                 2016
       600,000                                   2017

       400,000

       200,000

             0

                                                        13
Growth Volumes Well Balanced Among Customers

LDC / Industrial                LNG Exports
                    19%   23%

                                                   Distribution of total
                                                   volume growth (7.2
                                                   Bcf/d) for 2017 to 2020
                   32%    26%

     Producer                   Power Generation

                                                                             14
Leidy Line & Wharton Storage Update &
System Maintenance
Leidy Line
>   Transco has completed the requirements of the Corrective Action Order (CAO).
>   In addition to CAO compliance activities, integrity testing was also performed on other pipelines on the Leidy system.
    This includes over 325 miles of pipeline.
>   The tests included the use of various pigging technologies, hydrotests, etc.
>   All of Transco Leidy Lines are back to normal operations.
Wharton Storage
>   Transco is currently undertaking a comprehensive assessment of Station 535, the storage field and the related injection
    and withdrawal lines to and from storage.
>   The target is to have the assessments and all necessary repairs complete on both the storage field and the compressor
    station in time to provide service for the 2018-2019 withdrawal season.
>   The objective of the assessment is to ensure that that all of the Wharton Storage Facilities continue to operate in a safe
    and reliable manner once the repairs are complete and placed back in service.
>   Transco intends to continue to implement measures designed to mitigate potential impacts of this event on its ability to
    provide Rate Schedule GSS service.

>   We will keep you appraised of any additional developments, including any limitations on the availability of storage
    services provided under Rate Schedule GSS.
System Maintenance
>   Williams takes steps for prevention measures through a continual Operations and Maintenance Program.
>   Schedule found at www.1Line.Williams.com.

                                                                                                                                 15
Modernization Program

> Modernization Program – Evaluation
  – A strategic and defined program to upgrade and/or replace HP/Compression and
    pipeline facilities that
    • Require replacement based on risk profile
    • Require upgrades to meet new / emerging PHMSA and EPA rules
    • Provides reliability improvements to meet current and future flow conditions
  – Focuses on capital optimization that evaluates systems with a life-cycle viewpoint
  – An evaluation of the various cost recovery methods acceptable to FERC policy (PL15-
    01-000)
  – Transco will continue to keep Customers updated on the progress of the modernization
    program

                                                                                           16
Priority of Service Summary

> No-notice priorities of service offered by Transco: Traditional, Non-Traditional, Secondary
   and IT to continue providing additional flexible service
   – Flexible services will continue to be available when operationally feasible
   – Only Traditional and IT no-notice are provided by current tariff in Section 5.1 (b) of Rate Schedule FT, FTG, FDLS
     and IT
> No-notice is related to the primary contract path
   – Supported in current tariff in Section 4.7 of Rate Schedule FT, FTG, and FDLS
> Removal of Path for HBLV no-notice requests without a supply of gas
   – No-notice is received and delivered at the point of delivery and is supported by Section 5.1 (b) of Rate Schedule FT,
     FTG, and FDLS
> Imbalances held in zone of receipt; HBLV no-notice receipt is at the SSDP
   – No changes to Imbalance Resolution GT&C Section 25 or Cash Out GT&C Section 37
> No additional capacity needed to use Station 95 Pool; No transportation fee or fuel
   between Station 85 and Station 95 transactions
   – Segmentation allows shipper to relocate low burn requests from OIA 1 to OIA 2
   – Proposed tariff changes to GT&C Sections 28, 37, 51 and 52 to accommodate additional Station 95 pool in Zone 4
> Transportation and fuel charges assessed as provided in current tariff
   – No additional charges are proposed for transactions on system

                                                                                                                             17
Regulatory Update

>   On March 16, 2018, Transco filed to change the pooling rules in its tariff effective October 1, 2018 to
    begin charging commodity and fuel rates on transactions leaving the zones 5 & 6 pools rather than
    applying those charges to transactions going into those pools. The proposed change will make
    Transco’s pooling rules consistent at all of its market area pools.
>   On March 27, 2018, Transco filed an application with the Commission to abandon approximately 1.4
    bcf of Eminence capacity effective April 1, 2018, due to the company’s decision to operate the
    caverns at a lowered pressure.
>   On March 15,2018, the Commission issued a revised Policy Statement in Docket No. PL17-1-000,
    which revises its policy regarding the recovery of income tax costs in rates of jurisdictional natural
    gas pipelines. Because the Commission found that an impermissible double recovery results from
    granting a Master Limited Partnership (MLP) pipeline both an income tax allowance and a return on
    equity pursuant to the discounted cash flow methodology, the Commission revised its policy and will
    no longer permit an MLP to recover an income tax allowance in its cost of service. The Commission
    further found that, while all partnerships seeking to recover an income tax allowance will need to
    address the double-recovery concern, the Commission will address the application of its revised
    Policy Statement to non-MLP partnership forms as those issues arise in subsequent proceedings.
>   The Commission also issued a contemporaneous Notice of Proposed Rulemaking in Docket No.
    RM18-11-000, that proposes a process that will allow it to determine which jurisdictional natural gas
    pipelines may be collecting unjust and unreasonable rates in light of the recent reduction in the
    corporate income tax rate in the Tax Cuts and Jobs Act and the FERC’s revised Policy Statement.
    Transco is evaluating the impact of these issuances on its business.

                                                                                                              18
Rate Case Update
> As agreed in Article VI of the Stipulation and Agreement in Docket No. RP12-993, et al.,
   Transco will file a NGA Section 4(e) general rate case no later than August 31, 2018.

> Assuming that the filing date is August 31, 2018, the base period for the rate case will be
   June 1, 2017 – May 31, 2018 and the test period will be June 1, 2018 – February 28,
   2019.

> Assuming a full five month suspension period for the new rates, the effective date of the
   rates will be March 1, 2019.

                                                                                                19
Unsubscribed Capacity

                        FT Capacity
                        313,850 FT; Non-seasonal; Mobile Bay MP261 to Pooling Station 85 Z4A

                        37,346 FT; Non-seasonal; Southeast Louisiana Lateral Station 62-65

                        3,763 FT (ACQ) Available 8/1/2018; Seasonal (March 1- November 30) Telescoped
                        Capacity

                        Washington Storage
                        124,200 dt Storage Capacity; Withdrawal 1,307 dt/d; Injection 690 dt/d.
                        available 5/1/2018.

                        262,678 dt Storage Capacity; Withdrawal 2,765 dt/d; Injection 1,459 dt/d.
                        available 8/23/2018, pending the outcome of an open season.

                        Eminence EESWS
                        62,201 dt; Withdrawal 7,446 dt/d; Injection: 621 dt/d.

                        Eminence ESS Rate Schedule
                        2,018,705 dt; Withdrawal: 239,949 dt/d; Injection: 20,042 dt/d.

                        54,996 dt; Withdrawal 6,518 dt/d; Injection 544 dt/d. available 11/1/2018, pending the
                        outcome of an open season.

                        47,484 dt; Withdrawal 5,684 dt/d; Injection 474 dt/d. available 3/1/2019, pending the
                        outcome of an open season.

                                                                                                          20
Atlantic Sunrise (ASR) Project – 1Line Changes

> New “ROUTE” data element will be added to 1Line with the ASR Project in-service date
  – The Atlantic Sunrise (ASR) project will include the new Central Penn Line South (CPLS), giving
    shippers an alternate route option for some Zone 6 transactions.
    • A NAESB nomination element, ROUTE, will be required for affected Zone 6 transactions and will be effective with the
      ASR Project in-service date.
    • Valid Route options will be displayed in 1Line for affected nominations and secondary capacity release transactions.
    • EDI and Flat File formats will include the new ROUTE option. To ensure EDI files work correctly, customers must
      participate in testing.
    • Presentations with more details on the new ROUTE element, including EDI and Flat File testing information:
      – http://www.1line.williams.com/Transco/files/EDIASRCommunication.pdf
      – http://www.1line.williams.com/Transco/files/presentations/NewNominationDataFieldWebinar.pdf

> River Road Transfer Point
  – The junction of the new Central Penn Line South (CPLS) and Transco’s mainline, north of Station 195
    will be a Transfer Point
    • Delivery and Receipt volumes at the Transfer Point must match for each transaction.
    • “Lesser of” rule will apply for out of balance transactions across Transfer Point
    • Transport charges will apply on both deliveries to and receipts from Transfer Point

                                                                                                                             21
Atlantic Sunrise (ASR) Project – 1Line Changes

> Nominations and non-ASR secondary                                Leidy -
  capacity releases with paths that cross or                       Dominion
  are within any of the red brackets require
                                                                              Sta. 517
  Route selection.
> 3 Route Options
   – Non-CPLS: transaction moves on the

                                                                                North-CPLS
     Mainline or Leidy Line only
   – South-CPLS: transaction moves DOWN

                                                                                             CPL-South (CPLS)
     the CPLS to the Mainline
   – North-CPLS: transaction moves UP the                                                                                    210 Pool

                                                                               South-CPLS
     CPLS to the Leidy Line
> Valid Route options will be displayed in
  1Line.
> No Route option for:
   – Transactions with paths that do not cross
     into the bracketed triangle                                          Sta. 195
                                                                                                                River Road
   – Primary capacity releases                            Zone 6                                                Transfer
   – Secondary capacity releases of ASR
     contracts                                   Zone 5                BG&E

                                                                                                                                        22
Major Expansion Projects

                                                       Gateway                    Project                               Mdt/d
     Pre-construction               Atlantic Sunrise   Q1 2021
                                                                  Rivervale       Atlantic Sunrise                      1,700
     Under construction                Mid 2018
                                                                  Q4 2019
     In Service                                                                   Garden State                               180
                                   Garden State
                                 Q3 2017 / Q1 2018                                Gulf Connector                             475

                                                                                  St. James Supply                           162
                               Southeastern Trail        Northeast Supply
                                   Q4 2020               Q4 2019 / Q1 2020        NESE                                       400

                                                                                  Hillabee – Phase II                        207

           Hillabee Phase 2                                                       Rivervale South to Market                  190
                Q2 2020                                                           Southeastern Trail                         296
 Gulf Connector                                                                   Gateway                                     65
   Q1 2019
                                                                                  Total Expansion Capacity                   3.26

                                                                                  Current Transco Capacity*             14.98

                                                                                  Total Post-Expansions                 18.24
            St. James Supply
                 Q2 2019                                         * Includes 20 MDth/d for Garden State and
                                                                 400 MDth/d for Atlantic Sunrise placed in service in 2017

                                                                                                                               23
Northern Market: Continuing Strong Growth

                                                                                                     Rivervale South to
                                                                                                           Market                  New York Bay
                                                                                                     • 195 Mdt/d                • 115 Mdt/d
                                                                                                     • Q4 2019                  • October 6, 2017
                                Leidy Hub

                                                                                                     Gateway                          New York City
                                                                                                • 65 MDth/d
                                                                                                • Q1 - 2021
                                                Atlantic Sunrise
                                               • 1,700 Mdt/d
                                               • Mid 2018                                                                    210           Northeast Supply
                                                                                                                                            Enhancement
                                                                                                                                         • 400 Mdt/d
                                                                                                                                         • Q4 2019 / Q1 2020
                                                                                         195
                                                                                                                             Garden State
                                                                                                                           • 180 Mdt/d
                                                                                                                           • March 23, 2018

                                                                                             VA

Note: In-service dates and capacities for projects not yet in service represent expected in-service dates and capacities

                                                                                                                                                               24
Power Generation Fuels Southern Market Expansions

                                                                                                                                                   Virginia Southside II
                                                                                                                                                  • 250 Mdt/d
                                                                                                                                                  • December 1, 2017
                                                                                                                           165
                                         Dalton Expansion
                                                                                                                     160
                                        • 448 Mdt/d
                                        • August 1, 2017

              Hillabee Expansion Ph I
              • 818 Mdt/d
              • July 11, 2017                                                                                                Southeastern Trail
                                                                                                                           • 296 Mdt/d
                                                                                                                           • Late 2020

                                                                       Hillabee Expansion Ph II
                                          85                          • 207 Mdt/d
                                                                      • Q2 - 2020

Note: In-service dates and capacities for projects not yet in service represent expected in-service dates and capacities

                                                                                                                                                                           25
Gulf Coast Area Expansions Serving LNG and
     Industrial Customers

                                                                                                                           65
                                  Gulf Connector
                                 • 475 Mdt/d
                                 • 1st half 2019                                                              50
                                                                                           45                                    St. James Supply
                                                                                                                                • 161 Mdt/d
                                                                                                                                • Q2 2019

                            30
                                                                                            Gulf Trace
                                                                                       • 1,200 Mdt/d
                                                                                       • February 1, 2017

Note: In-service dates and capacities for projects not yet in service represent expected in-service dates and capacities

                                                                                                                                                    26
LNG Opportunities

                                           Gas Flows to Sabine Pass in Bcf/d
> Contracted with four of six
                                     3.5
 LNG facilities currently            3.0
                                                       Daily
 in-service or under                 2.5

 construction (~2 Bcf/d)             2.0
                                     1.5                                                       LNG

  – Market access to the other two   1.0
                                     0.5
    export facilities                 -

> Contracted with Sabine
 Pass Liquefaction; took
 delivery of nearly 90 Bcf
 in Nov. 2017                                                                    LNG

> Seven additional projects
 in development to
                                                                     LNG
 support LNG exports                                           LNG

                                                   LNG

                                                 LNG
                                                                               Sabine Pass, Contracted
                                                                               Other Contracted
                                                                               Market Access

                                                                                                     27
Eastern Interstates – Projects in Execution
We are currently executing a total of 10 different expansion opportunities
                                                                                                                                                            Constitution
                                                                                                                                                              Q3 2019
                                                                                                            Station 240 Modernization
                                                                                                                     Q4 2019
                                                                                                                                                       New York Bay Expansion
                                                                                              Rivervale South to Market                                       Q4 2017
                                                                                                       Q4 2019
                                                                                                                                                       NE Supply Enhancement
                                                                                                              Gateway                                    Q4 2019 / Q1 2020
                                                                                                              Q1 2021
                                                                                        Atlantic Sunrise                                             Garden State Phase I
                                                                                           Mid 2018                                                       Q3 2017

                                                                                                                                                     Garden State Phase II
                                                                                    Southeastern Trail                                                    Q1 2018
                                                                                        Q4 2020
                                                                                                                                               Virginia Southside II
                                                                                                                                                     Q4 2017

                                                                       Gulf Trace                                          Dalton Expansion
                                                                        Q1 2017                                                Q3 2017
                                              Gulf Connector
                                                 Q1 2019
Projects shaded in yellow are                                                                                                           Hillabee Phase 1
starting or under construction.                                                                                                              Q3 2017
Projects shaded in green are in
service. Stars represent power                                                      St. James Supply                                    Hillabee Phase 2
generation                                                                               Q2 2019                                             Q2 2020

      Shipper                     FERC Certificate                  FERC                          FERC                            Major
                                                                                                                               Construction                        In-service
    Commitments                   Application Filed                EIS / EA                     Certificate
                                                                                                                                Activities
                                  REGULATORY MILESTONES FOR FULLY CONTRACTED REGULATED EXPANSIONS
                          NE Supply Enhancement                Rivervale South to                                           Atlantic Sunrise                  Gulf Trace -       ISD 2/17
                                                                                           Constitution
                          Filed 3/17                           Market                      Received 12/14                   Began 3/17                        Hillabee Ph 1 -    ISD 7/17
                          Rivervale South to Market            Received 3/18               Hillabee Ph 2                    Gulf Connector                    Dalton -           ISD 8//17
                          Filed 9/17                                                       Received 2/16                    Began 2/18                        Garden St Ph 1 -   ISD 9/17
                          Gateway                                                                                           St. James                         Garden St Ph 2 –   ISD 3/18
                          Filed 11/17                                                                                       Began 4/17                        New York Bay -     ISD 10/17
                          Southeastern Trail                                                                                                                  VSS II -           ISD 12/17
                          Filed 4/18                                                                                                                                                         28
Garden State
                                                        Project Status:
                                                        • Phase I in service on Sept 9, 2017 (20 MDth/d);
                                                        • Phase II placed in-service on March 23, 2018 (160 MDthd).

                                                                  505
                                                      Zone 6

                                                                                                      207
                                            PA
                                                                               210 Pool
                                                                205

                                                                 Trenton

>   Expansion from Station 210 in Mercer County, NJ
    to a new delivery point with New Jersey Natural                                                 NJ
                                                                                203
    on Transco’s Trenton Woodbury Lateral in
    Burlington County, New Jersey                                                     New Meter and
                                                                                       Compressor
>   Service will be provided under Transco’s FT                                          Station
    Service.
>   Capacity: 180 MDth/d
      >   Phase I – 20 MDth/d and
      >   Phase II – 160 MDth/d
>   Shipper: New Jersey Natural Gas Company

                                                                                                                      29
Atlantic Sunrise
                                                     Project Status:
                                                     • All regulatory authorizations/ permits received with
                                                        construction underway on all project facilities;
                                                     • Target in-service date: Mid 2018.
>   Expansion of Transco’s Leidy Line to Mid-
    Atlantic and Southeast Markets
                                                                                                    New York City
>   Provides access to markets in Zones 6, 5 and 4                    Zone 6
>   Service will be provided under Transco’s FT                                    195
                                                                                                 To River Road:
    Service                                                                                        500 Mdt/d
>   Capacity: 1,700 Mdt/d
                                                                                     To Pleasant Valley:
>   Shipper: Numerous                                                                    350 Mdt/d

                                                                                    Shipper                        Dth/d
                                                                                    Anadarko                       44,048
                                                                      Zone 5        SWN                            44,048
                                                                                    Inflection                     26,429
                                  Zone 4                                            Chief                         420,000
                                                                                    Cabot                         850,000
                                                                                    Seneca                        189,405
                                           85
                                                                                    WGL Mid.                       44,048
                                                                                    MMGS                           22,024
                                                                                    Southern Co.                   60,000
                                                                                    Total                     1,700,002

                                                                                                                            30
Gulf Connector

                                                                               Project Status:
                                                                               • Construction commenced in February 2018;
>   Expansion of Transco's mainline from                                       • Target In-Service Date: Q1 2019.
    Station 65 to LNG delivery points in Zone 2                                                                    MS       85
    and Zone 1                                                                    LA                      Zone 4
>   Will be provided under Transco’s FT Service
                                                                                  Zone 3
>   Capacity: 475 Mdt/d                                                                           65

                                                   Zone 2               45
                               TX

                      Zone 1
                                    30
                                                     Freeport LNG – 75 Mdt/d

                               CCLNG - 400 Mdt/d

                                                                                                                                 31
St. James Supply

                                                                Project Status:
                                                                • Received FERC Certificate on January 18, 2018;
>   Incremental transportation from Transco’s                   • Construction commenced in April 2018;
    Station 65 to a new interconnect with the                   • Target In-Service Date: Q2 2019.          85
    proposed YCI M1 facility
>   Will be provided under Transco’s FT Service
>   Capacity: 161.5 Mdt/d
>   Shipper: YCI St. James Enterprises LLC                                                  Zone
                                                                                              4

                                                          65

                                                  Zone

                                                              SELA
                            45                                                                               82
                                                    3

                                                                            YCI St. James
                                                                             Enterprises

                                                         62

                                                                                                                   32
Station 240 Modernization

Project Status:
• Transco filed a 30-day advance notice with FERC on
  March 1, 2018
• Target In-Service Date: Q4 2019

Project Facts:
• Replace liquefaction plant at Station 240 in Carlstadt,
  New Jersey to resolve safety and emissions issues,
  liquefaction degradation, operational/reliability
  issues.
• Facilities:
    Gas Pretreatment
    10 MDth/d Liquefaction
    Compression
    Control System and Transformers

Background:
• Station 240 is a peak-shaving LNG plant constructed in
  1964.
• Consists of liquefaction, vaporization, and storage.
• The vaporization was replaced/upgraded in 1991.
• Total Storage is approximately 2,000 MDT
• Contractual Vaporization of 400 MDthd; Contractual
  Liquefaction of 10 MDth/d.

                                                            33
Rivervale South to Market
                                                     Project Status:
                                                     • FERC Application filed on August 31, 2017;
                                                     • Received EA on March 16, 2018;
>   Expansion from the Rivervale interconnect with   • Target In-Service Date: Q4 2019.
    Tennessee Gas Pipeline in Bergen County, NJ to
    the existing Central Manhattan M&R and Station
    210 Pool.
>   Will be provided under Transco’s FT Service
                                                     Rivervale
>   Capacity: 190 Mdt/d
>   Shipper(s): Direct Energy (187.5 Mdt/d), UGI
    Energy Services (2.5 Mdt/d)

                            Zone 6                     New York City

                                          210 Pool

                                                                                                    34
Northeast Supply Enhancement
                                                         Project Status:
                                                         • FERC Application filed on March 27, 2017;
                                                         • Draft Environmental Impact Statement received on
                                                           March 23, 2018;
                                                         • Target In-Service Date Q4 2019 / Q1 2020.

                                                                                   303
  >   Expansion from Station 195 in York County, PA to
      the Rockaway Lateral in New York Bay.                                                     Narrows

  >   Will be provided under Transco’s FT Service.
  >   Capacity: 400 Mdt/d
                                                                                                Rockaway
  >   Shipper: National Grid                                                        207         Delivery Point
                                                            205       210 Pool

                                           200
                      Atlantic Sunrise
                      Project

                          Proposed River
                          Transfer Point
                    195

                                                                                                                 35
Hillabee Phase 2
                                                                   Project Status:
                                                                   • FERC Order on Feb 2, 2016 and all other permits
                                                            Zone     have been received;
                                                              4    • Limited work completed to-date;
                                                                   • Target In-Service Date: Q2 2020.

>   Point-to-point lease with Sabal Trail from Station 85
    to a new interconnect in Hillabee, AL
>   Leased capacity will be used by Sabal Trail to
    provide access to Station 85 for its greenfield
    pipeline, which will extend to central Florida to
    serve Florida markets
>   Capacity: 207 Mdt/d
>   Shipper: Sabal Trail Transmission

                                                                                                                       36
Gateway

>   Expansion from the proposed PennEast
    Pipeline Company interconnect in Mercer
    County, NJ to the existing Paterson M&R
    and Ridgefield M&R.
>   Will be provided under Transco’s FT Service
>   Capacity: 65 Mdt/d
>   Shipper(s): PSEG Power (54 Mdt/d), UGI
    Energy Services (11 MDt/d)

                                        210 Pool

                                                   Project Status:
                                                   • FERC Application filed on Nov 15, 2017;
                                                   • Target In-Service Date: Q1 2021.

                                                                                               37
Southeastern Trail

 >   Firm transportation from the existing Zone 5
     Pleasant Valley Interconnect with Dominion’s Cove
     Point Pipeline south to our existing Zone 3 Pool at         Zone 6
     Station 65.
 >   Will be provided under Transco’s FT Service
 >   Capacity: 296.375 MDt/d
 >   Shipper(s): PSNC, SCE&G, City of Buford (Ga), City of
     LaGrange (Ga), Virginia Natural Gas.

                                                                              Zone 5

                                                     Zone 4

                                                              Project Status:
                                                              • FERC Application filed on April 10, 2018;
                                                              • Target In-Service Date: Q4 2020.

                                                                                                            38
WE MAKE ENERGY HAPPEN

Projects in Development

                              39
Adelphia Connection Expansion
In Development

                                                                           Martins Creek Terminal
                                                   From MARC1
                                                     on Leidy                     Lower Mud Run

Project Facts:
• Path from MARC 1 and a proposed
  interconnection with Adelphia Gateway Pipeline
  to markets on Transco's Marcus Hook / Trenton
  Woodbury Lateral.
• Facilities: Potential pipeline replacement,
  compression addition and meter station                                                                            207
  additions/ uprates.
• Capacity: 250 MDth/d                                                                               210 Pool
                                                                                             205
• Proposed ISD: November 1, 2021

                         Pennsylvania
                                                                                                     203

                                             200
                                                                                                     Trenton    New Jersey
                                                                                                    Woodbury
                                                                                                     Lateral
                                                           Contract Path

                           Proposed Interconnect
                           with Adelphia Gateway
                                  Pipeline

                                                                                                                             40
South Louisiana Market
In Development

                                                            Contract Path

     Project Facts:                                            Zone
     • Path from Transco’s Station 65 to a new interconnect with 3
       the methanol facility in St. James Parish, LA.
     • Facilities: 0.6 miles of 20-inch Greenfield lateral
     • Capacity: 202 Mdt/d
     • Proposed ISD: 2021
                          45

                                                                            41
Bluebonnet Market Express
In Development

                        Waha Supply Header

                                                  Contract Path

                                                                                                   Katy Delivery Header

                                                                                      Station 30

                                                                                                                          Station 35

                                                                         Station 17

  Project Facts:                                                  Agua Dulce
  • Greenfield pipeline from the Waha Supply Hub in the
    Permian basin to the Katy Hub landing area on Transco.
  • Facilities: 476 miles of Greenfield pipeline, 5 Greenfield
    compressor stations totaling 224,000 hp and 12 receipt
    and delivery meter stations.
  • Capacity: 2,000 Mdt/d
  • Proposed ISD: Late 2020

                                                                                                                                       42
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