SOURCE: El Paso Corporation

El Paso Corporation

May 05, 2011 11:00 ET

El Paso Corporation Announces Expansions for El Paso Natural Gas System

HOUSTON, TX--(Marketwire - May 5, 2011) - El Paso Corporation (NYSE: EP) today announced that its subsidiary, El Paso Natural Gas Company (EPNG), has successfully closed companion open seasons and signed long-term agreements to expand its Willcox lateral and provide mainline 95,000 dekatherms per day (Dth/d) of natural gas transportation to MGI Supply Ltd., a subsidiary of Pemex Gas, and 90,000 Dth/d to Mexicana de Cobre, S.A. de C.V., a subsidiary of Grupo Mexico, Mexico's largest mining company and one of the world's largest copper producers, for power-generation projects in Mexico.

The two open seasons, which closed April 29, 2011, offered up to 200,000 Dth/d of existing capacity held by EPNG on its south mainline, extending from the Waha Hub in West Texas to EPNG's Willcox compressor station in Cochise County, Arizona, and 185,000 Dth/d of proposed additional capacity from the Willcox station to two delivery points, also in Cochise County, at the U.S.-Mexico border. Expansion of the Willcox lateral, anchored by 15-year contractual commitments, would utilize existing facilities at the Willcox compressor station after certain pipe and compression modifications are undertaken. This project is expected to generate more than $30 million of annual revenues when fully in service with estimated capital of $18 million.

Pending Federal Energy Regulatory Commission approval, the project is planned to be in service by April 1, 2013.

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 oil and natural gas producers and an emerging midstream business. For more information, visit www.elpaso.com.

Cautionary Statement Regarding Forward-Looking Statements

This release includes certain 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 implement and achieve our objectives in our 2011 plan; our ability to obtain and maintain in force and effect all necessary federal, state and local regulatory approvals on a timely basis; our ability to successfully construct and operate the proposed facilities described in this release on time and within budget; our ability to satisfy all other conditions precedent in the contractual agreements; 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

  • Contacts:
    Investor-Media Relations
    Bruce Connery
    Vice President
    (713) 420-5855

    Media Relations
    Richard Wheatley
    Manager
    (713) 420-6828