SOURCE: El Paso Corporation

July 08, 2008 10:00 ET

El Paso Corporation Announces Expansion of Raton Basin Pipeline

HOUSTON, TX--(Marketwire - July 8, 2008) - El Paso Corporation (NYSE: EP) announced today an expansion of the Colorado Interstate Gas Company (CIG) natural gas pipeline transmission system that serves the Raton Basin. CIG's Raton Expansion will provide approximately 130 million cubic feet per day (MMcf/d) of incremental firm capacity from the Las Animas County, Colo., area of the growing Raton Basin northward along the Front Range of Colorado to the Cheyenne Hub. The expansion, expected to cost approximately $146 million, is supported by long-term firm transportation commitments with three shippers for nearly all of the expansion's capacity.

"CIG has worked closely with Raton Basin producers to provide the necessary pipeline infrastructure to support the continued growth in production," said El Paso's Western Pipelines President Jim Cleary. "This expansion provides producers with access to diverse markets both east and west via the Cheyenne Hub, which would potentially include access to growing demand centers in Nevada, Oregon and northern California through El Paso's Ruby Pipeline."

CIG's Raton expansion will consist of 118 miles of 16-inch pipeline, and El Paso has entered into a fixed-price contract for the purchase of steel pipe for the expansion. The expansion will increase CIG's capacity from the Raton Basin to more than 540 MMcf/d of natural gas. The project is expected to be filed with the Federal Energy Regulatory Commission by early 2009, with construction beginning in late 2009. The in-service target is the second quarter of 2010.

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.

El Paso Corporation Cautionary Statement Regarding Forward-Looking Statements

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 regulatory approvals and to successfully construct and operate the proposed facilities described in this release; 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.

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