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.