SOURCE: El Paso Pipeline Partners

July 02, 2008 11:00 ET

El Paso Pipeline Partners, L.P. Announces WIC Expansion

HOUSTON, TX--(Marketwire - July 2, 2008) - El Paso Pipeline Partners, L.P. (NYSE: EPB) today announced that its wholly owned subsidiary, Wyoming Interstate Company, Ltd. (WIC), will expand the WIC system upstream of the Opal Hub to accommodate increasing natural gas supplies from the Uinta Basin and Wamsutter production areas. The capital cost of the WIC expansion is estimated at $55 million. WIC has executed long-term firm transportation contracts with four shippers for a total of up to 255 thousand dekatherms per day (MDth/d). The expansion also supports shippers' transportation needs upstream of El Paso Corporation's Ruby Pipeline that will extend from Opal westward and is planned to be in service by March 2011.

This latest expansion is expected to generate approximately $4 million of incremental distributable cash flow in 2011, increasing to approximately $8 million in 2015 pursuant to long-term firm transportation contracts.

"This expansion will provide needed capacity and infrastructure to enhance the WIC system and make additional Rockies production available for transport to consuming regions," said Jim Yardley, president and chief executive officer for the general partner of El Paso Pipeline Partners. "With the addition of the WIC expansion, El Paso Pipeline Partners has a portfolio of organic growth projects that total approximately $250 million of capital that provides unitholders with visible long-term distribution growth."

In Utah, WIC will add a new, 6,200 horsepower compressor station on the existing 24-inch diameter, 124-mile Kanda Lateral. The new compression will increase the Kanda Lateral capacity to 515 MDth/d by providing approximately 100 MDth/d of incremental capacity from the outlets of two existing third-party processing plants in the Uinta Basin. The anticipated in-service date for this portion of the project is November 2010.

In Wyoming, WIC plans to install three miles of 24-inch diameter pipeline and reconfigure one compressor at its Wamsutter station. The pipeline, with the compression modifications, will provide 155 MDth/d natural gas deliveries from the WIC Mainline into Overthrust Pipeline and on to the Opal Hub and Ruby Pipeline. The anticipated in-service date for this portion of the project is March 2011.

El Paso Pipeline Partners, L.P. is a Delaware limited partnership formed by El Paso Corporation in 2007 to own and operate natural gas transportation pipelines and storage assets. El Paso Corporation owns 56.2 million limited partner units and 1.7 million general partner units. El Paso Pipeline Partners, L.P. owns Wyoming Interstate Company, Ltd. (WIC), an interstate pipeline system serving the Rocky Mountain region, and a 10 percent interest in each of the Colorado Interstate Gas Company (CIG) and Southern Natural Gas Company (SNG) interstate pipelines, which operate in the Rocky Mountain and southeastern regions of the United States, respectively. For more information about El Paso Pipeline Partners, visit www.eppipelinepartners.com.

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 in the timeframe and at the projected costs described in this release; our ability to contract for the quantities nominated by shippers in the open season; our ability to increase cash distributions from the partnership based upon the anticipated contractual commitments from the project; our ability to finance the project costs through our corporate revolver and any changes in the anticipated interest costs thereunder; general economic conditions in geographic regions or markets served by WIC, El Paso Pipeline Partners and their 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

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