Kinder Morgan Market Opportunity and Financial Overview slide image

Kinder Morgan Market Opportunity and Financial Overview

Reliable, Long-Duration Storage is Critical in Peak Demand Periods KINDER MORGAN DAILY AVERAGE OF WEEK-OVER-WEEK CHANGES IN U.S. WORKING GAS bcfd ■send-out ■build 20 -20 0 -80 Jan-2011 Jan-2012 Jan-2013 Jan-2014 -40 2014 polar vortex ~41 bcfd Uri -60 2018 polar vortex ~51 ~48 bcfd bcfd Jan-2015 Jan-2016 Jan-2017 Peak weather events have historically required 40-50 bcfd of natural gas storage send-out Jan-2018 Jan-2019 Jan-2020 Jan-2021 Jan-2022 DAILY POWER EQUIVALENT TWh per day 6.1 50 bcfd natural gas storage send-out 2050 U.S. APS forecasts only ~1.5 TWh of daily battery capacity Reliability is critical during these weather events & batteries would have to be recharged the following day - assuming weather conditions permit 1.5 U.S. 2050 battery capacity under APS Left: EIA Weekly Underground Natural Gas Storage Report. KM analysis. Right: Based on IEA data from the IEA (2022) World Energy Outlook, World Energy Outlook 2022 - Analysis - IEA. All rights reserved; presentation modified by Kinder Morgan (data unchanged). APS = Announced Pledges Scenario. Note: Battery equivalent based on natural gas energy converted terawatt hours (TWh) at 0.29 TWh per day per 1 bcfd; then, energy storage converted into power equivalent using assumed 42% efficiency rate of a natural gas peaker plant. Battery storage capacity assumes 4-hour duration by multiplying capacity by 4. IEA utility-scale battery storage assumptions range from one to eight hours. 17
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