NGTL System Capacity Optimization Open Season ResultsJuly 15, 2020

Objectives• Assist customers in the optimization of their transportation service requirements • Support NGTL with the optimization of its expansion program

• Help align System capacity growth with customer growth• Construction of the right facilities in the right timeframe

Requests• Deferral or advancement of pending contracts• Turnback of certain billable contracts• Early notification of non-renewal of billable contracts

Conditions• Acceptance of requests required a net benefit

• To the System and customers• From a Rates perspective

Capacity Optimization Open Season - Objectives & Conditions

Contract Impacts

Overview of Accepted Requests

FT-D

• 352 TJ/d of advancement requests

• FT-D1: 31 TJ/d

• FT-D2: 321 TJ/d

• 575 TJ/d of deferral requests

• FT-D1: 160 TJ/d

• FT-D2: 415 TJ/d

FT-R

• 124 mmcf/d of deferral requests

Additionally, received 25 mmcf/d of early FT-R non-renewal notification

Open Season Impact on Aggregate System

• High FT levels remain, continuing to commercially underpin planned facilities

• The Open Season requests support a delay in Design Flow growth

• Reduced Design Flows result in deferrals of planned facilities

Facility Update

Summary of Facility In-Service Date Changes

Proposed Compressor

LEGEND:

Proposed Pipe

Proposed Facility

Approved Applied-for To Be Applied-for

MAP I.D. FACILITY DESCRIPTION

PRE COOS

TARGET IN-

SERVICE DATE

POST COOS

TARGET IN-

SERVICE DATE

1 Groundbirch Mainline Loop (Sunrise) 24km NPS 42 Nov-21 Apr-22

North Corridor Expansion Project

2 NWML Loop No. 2 (Bear Canyon Extension) 25km NPS 36 Apr-22 Apr-23

3 Hidden Lake North CS Unit Addition 30MW Apr-22 Apr-23

4 NCC Loop (North Star 2) 24km NPS 48 Apr-22 Apr-23

5 NCC Loop (Red Earth 3) 32km NPS 48 Apr-22 Apr-23

6 Saddle Hills Unit Addition 30MW Nov-22 Apr-23

7 Groundbirch Mainline Loop (Saturn) 24km NPS 42 Nov-22 Apr-23

8 Emerson Creek C/S 2 x 30MW Apr-23 Apr-24

9 GPML Loop 4 (Valhalla North) 33km NPS 48 Apr-23 Apr-24

NE (North of Bens) Design Chart

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0

10

20

30

40

50

60

70

80

90

100

110

120

130

1-No

v-14

1-No

v-15

1-No

v-16

1-No

v-17

1-No

v-18

1-No

v-19

1-No

v-20

1-No

v-21

1-No

v-22

1-No

v-23

MMcf/d106m3/d

Deliveries Receipts Design Flow (2019) Receipt Design Flow Contract Profile (May 2020)

Buffalo & Goodfish C/S

North Corridor Exp.

NE (North of Bens) Design Chart Post Open Season

North Corridor Exp.

PRPA Design Chart Pre-Open Season

Saturn Loop/Saddle CS

Valhalla Loop/Emerson CS

EME Project

Sunrise LoopClearwater CS

2021 NGTL Exp

PRPA Design Chart Post-Open Season

One Season

One Year

Saturn Loop/Saddle CS

Valhalla Loop/Emerson CS

Sunrise Loop

Central Design Chart Pre-Open Season

Central Design Chart Post-Open Season

Deferrals enabled Central Area advancements

resulting in increases to Design Flows

EGAT Design Chart Pre-Open Season

EME Project

Clearwater CS

2021 NGTL Exp

EGAT Design Chart Post Open Season

ABC Design Chart

ABC Design Chart

No impacts to ABC facilities

• Until 2024/25 system demand is lower compared to 2019 forecast

• Oil Sands gas demand is lower in the near term

• Electric Generation gas demand is higher in near term

• Industrial gas demand growth is reduced in near term

• Export growth remains strong

• Supply will continue to meet demand

Forecast Summary

• Results in benefits to the NGTL system and its customers through optimized facility timing, reduced tolls, and by assisting customers in optimizing their transportation requirements

• Incorporating the requests of the Open Season in NGTL’s forecast and design process, NGTL has concluded that all proposed expansion projects continue to be required to meet aggregate system requirements

• However, the required in-service dates for some facilities have been deferred by one season, or one year, to align with the revised system requirements and the accepted requests to delay contract commencement dates.

• The following projects will have revised in-service dates:• Groundbirch Mainline Loop (Sunrise Section)• North Corridor Expansion Project• Saddle Hills Unit Addition• Groundbirch Mainline Loop (Saturn Section)• Emerson Creek Compressor Station• Grande Prairie Mainline Loop 4 (Valhalla North Section)

• For further detail on these projects, please refer to NGTL’s Facility Status Update (Appendix 2) at:

http://www.tccustomerexpress.com/docs/ab_regulatory_facilities/July%202020%20Facility%20Status%20Update_Final.pdf

Summary