El Paso Corporation (NYSE: EP) today announced that its wholly owned
subsidiary, Tennessee Gas Pipeline Company (TGP), has executed long-term
agreements for the MPP project which will expand TGP's 300 Line in
Pennsylvania.
The 240,000 dekatherms per day (Dth/d) project includes approximately 8
miles of 30" pipeline looping and modifications to four existing
compressor stations in Pennsylvania to provide natural gas
transportation from the Marcellus Shale supply area to existing delivery
points on the TGP system. All of the capacity is subscribed through
agreements with Chesapeake Energy Marketing, Inc., a wholly-owned
subsidiary of Chesapeake Energy Corporation (NYSE: CHK), for 140,000
Dth/d and Southwestern Energy Services Company, a wholly-owned
subsidiary of Southwestern Energy Company (NYSE: SWN), for 100,000 Dth/d.
"We are pleased to announce our fourth expansion project in as many
years which brings our total investment in Marcellus infrastructure to
$1.3 billion and adds nearly 1.5 Bcf/d of capacity," said Norman Holmes,
president of Tennessee Gas Pipeline. "This project leverages TGP's
strategic location and provides significant new firm transportation
capacity for two prominent Marcellus Shale producers."
Capital for the MPP project is expected to be less than $100 million.
TGP anticipates filing a certificate application for the project with
the Federal Energy Regulatory Commission in late 2011. Pending
regulatory approvals, construction would begin in 2013, with a November
1, 2013 in-service date.
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, one of North
America's largest independent exploration & production companies and an
emerging midstream business. El Paso owns a 42 percent limited partner
interest, and the 2 percent general partner interest in El Paso Pipeline
Partners, L.P. El Paso Corporation's Board of Directors has granted
initial approval of a plan to separate the company into two publicly
traded companies through a tax-free spinoff of its exploration and
production business to shareholders before year-end 2011. 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, the uncertainties
associated with obtaining necessary governmental approvals, construction
risks and the risk of defaults by our customers; 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.
