SOURCE: El Paso Corporation

August 05, 2008 16:07 ET

El Paso's Tennessee Gas Pipeline Announces 300 Line Expansion Project

HOUSTON, TX--(Marketwire - August 5, 2008) - Tennessee Gas Pipeline Company ("Tennessee"), a wholly owned subsidiary of El Paso Corporation (NYSE: EP), today announced the results of a binding open season for its 300 Line Expansion Project. Equitable Energy LLC, a subsidiary of Equitable Energy (NYSE: EQT), executed a binding precedent agreement for a 15-year term and was awarded 300,000 Dth/d, which represents 100 percent of the project's capacity. The project links Equitable's Appalachian production to northeast markets. The expansion facilities will consist of approximately 125 miles of 30-inch pipe loop and approximately 46,000 horsepower of additional compression facilities to be constructed in Tennessee's existing pipeline corridor in Pennsylvania and New Jersey. Tennessee has entered into a fixed price agreement to lock in its pipe costs.

"We're excited to have Equitable, a major gas producer in the Appalachian basin, become one of the largest shippers on our system," said Bryan Neskora, Chief Commercial Officer of Tennessee. "This project strengthens Tennessee's position in the Northeast with diversified supplies and a significant increase in capacity to serve this region."

"Equitable's participation in this project exemplifies our commitment to support the expansion of much needed pipeline capacity out of the Appalachian Basin," said Randall Crawford Senior Vice President of Equitable Resources. "The project enables Equitable to deliver more of our produced gas to the highly valued Northeast markets."

Construction of the project is subject to regulatory approval from the Federal Energy Regulatory Commission ("FERC") and other agencies. Tennessee plans to file its certificate application with the FERC during the second quarter of 2009, with phased construction anticipated during 2010 and 2011, pending receipt of the necessary regulatory approvals for the project.

For more information on the 300 Line Expansion Project, visit project web site at www.elpaso.com/tgp300lineexpansion/default.shtm.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit www.elpaso.com.

Note to Editors: A map of the project can be accessed at www.elpaso.com/tgp300lineexpansion/images/Line_300_Map.jpg.

Cautionary Statement Regarding Forward-Looking Statements

This release includes forward-looking statements and projections. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, our ability to obtain all necessary federal, state and local regulatory approvals; our ability to successfully construct and operate the proposed facilities described in this release on time and within budget; creditworthiness of our shippers; the successful close of our financing transactions; general economic conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located, and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

Contact Information

  • El Paso Contacts
    Investor and Public Relations
    Bruce L. Connery
    Vice President
    Office: (713) 420-5855

    Media Relations
    Susan Argue
    Manager
    Office: (713) 420-1544