PASO DEL NORTE PIPELINE GROUP PRELIMINARY MARKET ANALYSIS PRELIMINARY MARKET ANALYSIS OCTOBER 2014 THE STATE OF CHIHUAHUA, MEXICO ACTUAL PIPELINE NETWORK IN CHIHUAHUA FIRST STAGE FLORIDANUEVO CASAS GRANDES SECOND STAGE NUEVO CASAS GRANDES CUAUHTEMOC FIRST STAGE, NUEVO CASAS GRANDES MARKET POTENTIAL FIRST STAGE INDUSTRIAL AND AGRO MARKET WATER PUMPING FOR AGRICULTURA WELLS FREEZE PROTECTION GREENHOUSES FOOD PROCESSING INDUSTRY FRUIT STORAGE AUTOMOTIVE ASSEMBLY PLANTS (ONE EXISTING INDUSTRIAL PARK) N.C. GRANDES. MARKET POTENTIAL FIRST STAGE RESIDENTIAL MARKET POPULATION 104,000 IN 2010 MAIN CENTERS. NUEVO CASAS GRANDES MEXICAN/ MORMON POPULATION NUEVO CASAS GRANDES SECOND STAGE CUAUHTEMOC MARKET POTENTIAL SECOND STAGE INDUSTRIAL AND AGRO MARKET WATER PUMPING FOR AGRICULTURA WELLS FREEZE PROTECTION GREENHOUSES FOOD PROCESSING INDUSTRY (DAIRY PROCESSING) AUTOMOTIVE PARTS PLANTS PAPER PLANTS METALMECHANIC INDUSTRY FRUIT STORAGE C.A. ELECTRONIC INDUSTRY IRON FOUNDRY (ONE EXISTING INDUSTRIAL PARK AND CORREDOR COMERCIAL MENONITA) MARKET POTENTIAL SECOND STAGE RESIDENTIAL MARKET POPULATION 222,000 IN 2010 MAIN CENTERS. CUAUHTEMOC CITY MEXICAN/ MENONNITE POPULATION CD. CUAUHTEMOC POTENTIAL DEMAND INVESTMENT ATTRACTION THE MOST IMPORTANT MARKET DEMAND WILL COME FROM A STRATEGY OF INVESTMENT ATTRACTION OF ENERGY INTENSIVE COMPANIES PRODUCTIVITY POTENTIAL •MEXICAN COMPETITIVE DIRECT LABOR •COMPETITIVE TECHNICAL AND MANAGEMENT WORK FORCE •CLOSE CONNECTION TO US AND MEXICAN MARKETS •AVAILABILITY OF NATURAL GAS AT COMPETITIVE PRICES INDUSTRIAL SEGMENTS TO BE DEVELOPED •UREA PLANTS •ELECTRICITY PLANTS •GREENHOUSES •INDUSTRIAL FOUNDRY ALUMINUM CASTING •STEEL CASTING •FOOD PROCESSING INDUSTRIAL PARKS ACTUAL AND POTENTIAL •PUERTO PALOMAS (ACCESS TO RAIL LINES IN THE US) •NUEVO CASAS GRANDES (PAQUIME) •RUBIO •CUAUHTEMOC •ANAHUAC (ACCES TO RAIL LINES) •LA JUNTA (ACCES TO RAIL LINES) RESIDENTIAL MARKET INDUSTRIAL PARKS AND ZONES INDUSTRIAL PARKS IN OPERATION IN THE ROUTE OF PASO NORTE PIPELINE N. CASAS GRANDES CUAUHTEMOC CORREDOR COMERCIAL ANAHUAC POTENTIAL INDUSTRIAL PARKS FOR ENERGY INTENSIVE OPERATIONS IN THE ROUTE OF PASO NORTE PIPELINE PUERTO PALOMAS RUBIO. MENONITE ZONE LA JUNTA, ACCES TO RAIL AGRO WATER PUMPING MARKET POTENTIAL Chihuahua Study A final market potential will be defined after developing comprehensive market study