1. Canada, an Emerging Energy Superpower
CANADA INC.
2006 Energy Round Table
Canada, an Emerging Energy Superpower
September 26th, Calgary, Alberta
Ian D. Anderson President Kinder Morgan Canada

2. The Challenge, The Opportunity
Overview
Kinder Morgan Profile
The Challenge, The Opportunity
Kinder Morgan Canada as Part of the Solution

3. Forward Looking Statements
This presentation contains forward looking statements, including these, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Exchange Act of 1934, as amended. Forward looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results and securities values of Kinder Morgan Inc., Kinder Morgan Energy Partners, L.P. and Kinder Morgan Management, LLC (collectively known as “Kinder Morgan”) may differ materially from those expressed in the forward-looking statements contained throughout this presentation and in documents filed with the SEC. Many of the factors that will determine these results and values are beyond Kinder Morgan's ability to control or predict. These statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others, the ability to achieve synergies and revenue growth; national, international, regional and local economic, competitive and regulatory conditions and developments; technological developments; capital markets conditions; inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather conditions; environmental conditions; business and regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural products; the timing and success of business development efforts; terrorism; and other uncertainties. You are cautioned not to put undue reliance on any forward-looking statement.

4. Kinder Morgan Assets Trans Corridor Mountain Express Pacific Cochin2
Pacific
Northern
TransColorado
CALNEV
KMCO
KMTP
KMTejas
Wink
SACROC
Yates 7 5
Plantation
Cypress
NGPL 8
Central Florida 4 3
KMIGT
Trailblazer
Cochin
North
Express
Platte
Corridor
Trans
Mountain
Claytonville
NGPL (KMI)
NGPL GAS STORAGE (KMI)
RETAIL GAS DISTRIBUTION (KMI)
GAS-FIRED POWER PLANTS (KMI)
PRODUCTS PIPELINES (KMP)
PRODUCTS PIPELINES
TERMINALS (KMP)
TRANSMIX FACILITIES (KMP)
NATURAL GAS PIPELINES (KMI-KMP)
NATURAL GAS STORAGE (KMI-KMP)
NATURAL GAS PROCESSING (KMI-KMP)
CO2 PIPELINES (KMP)
CO2 OIL FIELDS (KMP)
CRUDE OIL PIPELINES (KMP)
KM HEADQUARTERS
TERASEN GAS (KMI)
PETROLEUM PIPELINES (KMI)
PETROLEUM PIPELINES
TERMINALS (KMI)
(2,3,8)
INDICATES NUMBER OF
FACILITIES IN AREA

5. KMP: Solid Asset Base Generates Stable Cash Flow
CO2
Products Pipelines
KMP 2006 DCF (a)
30% CO2 transport and sales
70% oil production related
Expected production hedged (b):
2006=88% 2007=75% 2008=54%
Refinery hub to population center strategy
68% Pipelines
27% Associated Terminals (c)
5% Transmix
No commodity price risk
Products Pipelines 27%
CO2 29%
Natural Gas Pipelines 25%
Terminals 19%
Terminals
Natural Gas Pipelines
47% Liquids, 53% Bulk
Geographic and product diversity
3-4 year average contract life
51% Texas Intrastate
49% Rockies
Little incidental commodity risk
Budgeted 2006 distributable cash flow before G&A and interest
Net equity production, approved plus identified potential projects. Includes heavier NGL components (C4+).
Terminals are not FERC regulated except portion of CalNev.

6. KMI: Solid Asset Base Generates Stable Income
Investment in KMP (b)
NGPL
KMI 2006 Segment Income (a)
General partner interest earns incentive distributions
Owns 13% of total limited partner units
FERC regulated with 3-year average contract life
Primary customers are Illinois local distribution companies
Little incidental commodity risk
NGPL
30%
KMP
39%
KM Canada
Retail
Retail Gas Distribution
23%
Three major systems connected to Canadian Oilsands
Majority of capacity committed under long-term contracts
Natural gas distribution service
Serve ~ 890,000 customers in British Columbia
Serve ~ 245,000 customers in Colorado, Wyoming and Nebraska
KM Canada 7%
Other 1%
Budgeted 2006 segment earnings before G&A and interest.
Includes: (i) general partner interest, (ii) earnings from ~ 20 million KMP units & (iii) earnings from ~ 10 million KMR shares.

7. The Opportunity – Oil Sands Production
Western Canadian Crude Production (a)
World Oil & Bitumen Reserves – Top 10 (b)
(MBbl/d)
(reserves billions of barrels)
345
315
270
3.5 MMBbl/d
130
1 MMBbl/d Oil Sands
115
100
100 93 40 32
Export Pipeline Capacity (c)
(MBbl/d)
New Capacity
Required
Source: CAAP May 2006 Canadian Crude Production and Supply Forecast
Source: NEB 2003 study “Canada’s Energy Future, Scenarios for Supply and Demand to 2025”.
Western Canadian
Production*
Export
Pipeline Capacity
Western Canada Demand

8. The Opportunity – U.S. a Significant Importer of Crude
U.S. Crude Refinery Inputs by
PADD – 2004 (a)
Alaskan North Slope Production
Declining (b)
(MBbl/d)
Total Refinery Inputs %
Imports
Canadian Imports as % of Total Imports
PADD I (E. Coast)
1,597
97%
13%
PADD II (Midwest)
3,288
89%
36%
PADD III (G. Coast)
7,438
59%
---
PADD IV (Rockies)
556
46%
100%
PADD V (W. Coast)
2,596 9%
Total
15,475
65%
16%
ANS Crude Oil Production (MBbl/d)
Canadian crude through
Trans Mountain
16% (100 MBbl/d)
Washington State Refinery
Capacity (c)
Other
84% (615 MBbl/d)
Source: EIA “Petroleum Supply Annual 2004”.
Source: CIBC Jan-2006 industry report “Oil Pipeline Expansion: Refiners in Traditional Markets Girding for Expanded Diet of Canadian Heavy”.
Washington state crude oil refinery capacity. Sources: DBRS Oct-2005 industry report “The Canadian Oilsands”, Company reports.

9. Kinder Morgan Canada Operator of 3 Oil Pipelines
Trans Mountain is sole Pipeline from Alberta to West Coast
Express is largest line to PADD IV
Platte serves large PADD II market
Corridor
Trans Mountain
Express/Platte

10. Kinder Morgan Canada Trans Mountain
Certainly a lot of current focus on the Trans Mountain system both in terms of construction activity today and what we plan for the future.
But first, I thought we’d take a step back and look at West Coast market fundamentals.
These 2 or 3 charts are with the help of Energy Analysts International, a Denver-based energy markets consultant:

11. West Coast Crude Market Fundamentals
Production Forecast
COASTAL
COOK INLET
LA Basin
OCS
SJV
ANS
From an overall WestCoast production perspective and despite current price levels, we see a consistent trend in production declines:
Current levels are in the 1.6 to 1.7 mmbpd range with declines expected around 2%/year over the next 10 years.
California crude declines are expected to average slightly higher at 3%
ANS slightly lower at 1%/yr. Note that we have not factored in any potential impacts from the current Prudhoe Bay issue.
Source: EAI Inc.

12. West Coast Crude Market Fundamentals
Balance Outlook
Total West Coast Crude Demand
Imports
Coastal
La Basin
San Joaquin Valley
OCS
Alaska
Translating the production forecast to a balance outlook:
With demand is rising just less than 1%/yr reflecting refinery creep
Import requirements will grow by about 600,000 bpd over the next 10 years
Other than logistic constraints (which we are trying to fix), there is no reason Canadian crude can’t fill some of that gap:
the current refinery diet in California is suited toward Canadian heavy grades
we currently have direct access into Puget Sound
Source: EAI Inc.

13. Trans Mountain Volume History
0% Heavy
10% Heavy
This is something we are getting used to already on a couple of our systems – Trans Mountain being one of them
We have been in some form of apportionment in the last 19/30 months and we do expect continued pressure on the system even after the smaller expansions that are currently under way.
Denotes Apportionment

14. TMX Plan – 1.1 Million bpd Existing: 225,000 bpd (heavy)
Pump Station Expansion – 35,000 bpd
Anchor Loop – 40,000 bpd
Southern Expansion: 2010/11
TMX-2 – 100,000 bpd
TMX-3 – 300,000 bpd
Northern Expansion
TMX-North – 400,000 bpd
1,100 kbpd
400 kbpd
700 kbpd
__________________________

15. TMX Value Proposition
Market Fundamentals Support an Expanded Western Option
Traditional market area is saturated/ Market clearing to support netbacks
Washington State refinery conversions
California opportunity
limited Canadian penetration of PADD V market to date
declining ANS/domestic production
Asian market option
Increasing value of holding options in this market environment
TMX Benefits
Established operations & infrastructure
Connected to existing and expanding markets
Staged expansion able to match timing of market needs – risk reduction
Export option (also staged to match market needs)
Westridge dock expansion
Northern Leg
Additional Value Added Services
Blending and storage at Edmonton, Sumas, Burnaby

16. Corridor Expansion
System – 285 mile 24” x 12” line between Muskeg River Mine and Scotford Upgrader
27 mile crude and supplemental line
Capacity – 155,000 bpd of dry bitumen from mine to upgrader
71,000 bpd diluent back to mine
Shippers – 100% contracted to Athabasca Oil Sands
Planned Expansion – new 42” line, up to 1.0 Mil bpd
In service 2009
Future Plans – more oilsands take away capacity to match production
Muskeg River Mine

17. Kinder Morgan Canada
Express/Platte

18. PADD IV Market Fundamentals
Supply – Demand Framework
Refinery Runs and Domestic Exports
Canadian Imports
RM Core Production
From a Canadian perspective:
Growing opportunity for Canadian supply in the area as a result of declining production coupled with increasing refinery runs
Assumes no refinery closures and no major expansions
Source EAI 2006

19. Express – Platte Pipeline Systems
Express Pipeline:
Expanded to 280,000 bpd in April 2005
Underpinned through 235,000 bpd of firm contracts expiring in 2012/2015
Ownership: 1/3 KMI, 1/3 Ontario Teachers, 1/3 OMERS
Talking about Expansion with Refineries in PADD IV
Platte Pipeline:
165,000 bpd capacity: Casper to Guernsey
143,000 bpd capacity: ex-Guernsey
Increased local production plus Canadian crude wishing to access PADD II has created proration issues at Guernsey
Proration policies currently before the FERC
Express – With market support, system was expanded from 172 to 280 kbpd in spring of last year.
Since then we’ve not only seen new Cdn supplies accessing PADD IV market but also:
significant increase in domestic production starting in the end of last year
Cdn production seeking to access new PL initiatives in lower PADD II.
These 2 events have put pressure on the Platte system and have caused us to prorate the system east of Guernsey
Platte prorationing has been a large focus of ours fro the past several months and led to a technical conference in front of the FERC in July
the next steps wrt prorationing rest with the FERC but we do expect to be moving to a historical system by year-end.

20. Gulf Coast Market Access
Express Routing:
Existing KMC RoW to Casper/Guernsey
Satisfy incremental Rockies, Denver, Panhandle supply needs
Bullet Line:
Existing KM RoW in OK/TX
36” line in-service early 2010
Patoka South:
Supply from expanded Express/Platte and others
Existing KM RoW/PL assets in IL/ MO/AR/TX
Corridor
Fort McMurray
Edmonton
Cold Lake
TMPL
Hardisty
Vancouver
Bow River
Rangeland
Enbridge
Anacortes
Cenex
Express
Eastern Corridor
Billings
PADD IV
Pacific
PADD II
Southern Access
Enbridge
Casper
Koch
Guernsey
Detroit/ Toledo
Platte
Chicago
Frontier
Denver
Salt Lake City
Jayhawk
Patoka
Spearhead
Wood River
Finally, I would be remiss in not touching briefly on our Gulf Coast market access development – looking at 3 different options
Bullet line least costly but has fewest synergies
PADD III
Cushing
Midland
Express Routing
Bullet Line
Patoka South
Freeport
Houston
Corpus Christi

21. Kinder Morgan Canada Terminals
Touch briefly on our terminals activity which is moving at a significant pace

22. Terminals Activities – Alberta
Edmonton North Forty Project:
2 million bbls capacity in 9 tanks
Connectivity to major feeder streams in area + Trans Mountain and Enbridge
Facility now fully underpinned with long-term contracts
In service April 2007
KM’s first major terminal project in Canada
Hardisty:
Land recently acquired to allow construction of 3 million barrels of heated storage
Commercial underpinning now being sought
Recently announced North 40 project which is now under construction and KM’s first major terminal project in Canada:
Provides for 2 million bbls of storage and blending capacity with connectivity to all major feeder and trunk systems
First tanks in service by April of next year
Hardisty

23. The Big Picture – Developing a CO2 Market
Based on CO2 captured from industrial processes
Dual Objectives
EOR (Commercial)
Storage (compliance)
Pipeline infrastructure to accommodate all needs
Complex/ New Systems
The Enormity of the Task
Sequestration
EOR
Storage
Carbon Capture
Industrial Source
Transportation
Infrastructure
Meter/ Monitor
Verify (MMV)

24. Comparative Market Perspective
ITEM
PERMIAN BASIN
ALBERTA
Emissions Issue
None at this time
Kyoto Goal -
4 Bcf/d GHG reduction
CO2 Demand
1.4 bcf/d
mmcf/d (est.)
OOIP (bn bbls)
90+ 20
CO2 Pipelines (mi.)
2,000
None

25. CO2 - EOR: Major Capital Commitment & Extensive Expertise
CO2 -EOR Operations (SACROC)
Snyder Gas Plant
Kinder Morgan
Well over $US 1.0 billion in capital
20+ years experience
Over 1000 experienced staff
Continuing excellence (new p/l, new facilities, $US 200 million capital expansion
Active DOE sequestration role
CO2 Supply Operation McElmo Dome CO2 Plant

26. CO2 Infrastructure
Current engineering route estimate. Pending final design/ procurement only.
Phase I:
Heartland hub
Mainline
SW lateral
NW lateral [could be staged in sequence}
Phase II:
Ft. McMurray line
If sequestration need or new dilbit
Phase III:
Init. Design, could route Red Deer
Depends on Brooks/ Taber and immisc

27. CANADA INC.