SOURCE: El Paso Corporation

El Paso Corporation

July 28, 2011 10:00 ET

El Paso Corporation Places Ruby Pipeline in Service

HOUSTON, TX--(Marketwire - Jul 28, 2011) - El Paso Corporation (NYSE: EP) today announced that it has placed its Ruby Pipeline in service. Ruby is a 680-mile, 42-inch interstate natural gas pipeline, providing transportation service from Opal, Wyoming, to interconnections near Malin, Oregon. Ruby is the first interstate natural gas pipeline to achieve carbon neutrality in its construction and operation.

"Ruby is across the finish line, completing more than three-and-a-half years of stakeholder outreach and construction," said Jim Cleary, president of El Paso's Western Pipelines. "During its construction, Ruby generated thousands of jobs and provided significant revenues for local communities as well as county and state governments. Going forward, it will continue to deliver long-term economic and environmental benefits, by providing clean-burning natural gas supplies from the major Rocky Mountain basins to consumers in California, Nevada, and the Pacific Northwest. Ruby is another demonstration of El Paso's commitment to build critical natural gas transportation infrastructure to meet the nation's energy needs."

El Paso expects that within the next 60 to 90 days, it will meet the requirements contained in Ruby's project financing agreements such that the approximately $1.5 billion of Ruby debt will become non-recourse to El Paso.

Global Infrastructure Partners (GIP) has invested $700 million in the Ruby project. Upon satisfaction of various closing conditions, GIP will increase its equity interest in the project to 50 percent.

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 and an emerging Midstream business. El Paso Corporation's Board of Directors has approved a plan to separate the company into two publicly traded companies through a tax-free spinoff its exploration and production business to shareholders before year-end 2011. For more information, visit www.elpaso.com.

For more information about the Ruby Pipeline, visit www.rubypipeline.com.

Global Infrastructure Partners

Global Infrastructure Partners ("GIP") is an independent infrastructure fund that invests worldwide in infrastructure assets and businesses in both OECD and select emerging market countries. GIP targets investments in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in New York and London with an affiliate in Sydney and portfolio operations headquarters in Stamford, Connecticut. For more information, visit www.global-infra.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 objectives in our 2011 plan and updated guidance, including achieving our earnings and cash flow targets; our ability to comply with the covenants in our various financing documents and meet the requirements of project completion; our ability to successfully operate the Ruby Pipeline; actions by the credit rating agencies; the successful close of our financing transactions; credit and performance risk of our lenders, trading counterparties, customers, vendors and suppliers; changes in commodity prices and basis differentials for oil, natural gas, and power; risks typically inherent in spin-off and related transactions; the ability of our pipeline and production businesses to successfully operate independently; satisfaction of conditions to implement the separation of the companies, including confirmation of the tax-free nature of the transaction; the receipt of final approval of our board of directors of the separation and related transactions; disruptions experienced with customers, suppliers and employees; our ability to retain anticipated management teams and key employees of the separated companies; general economic and weather conditions in geographic regions or markets served by the company and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition; 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:

    El Paso Corporation
    Investor-Media Relations
    Bruce L. Connery
    Vice President
    (713) 420-5855

    Media Relations
    Richard Wheatley
    Manager
    (713) 420-6828

    Global Infrastructure Partners
    Investors
    Susan Healy
    susan.healy@global-infra.com
    (212) 315-8105

    Media
    Jack Cowell
    jack.cowell@global-infra.com
    (212) 315-8133