El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Moving Forward With Ruby Pipeline Project
HOUSTON, TX, Jun 25, 2008 (MARKET WIRE via COMTEX News Network) -- El Paso Corporation (NYSE: EP) announced today that its subsidiary,
Ruby Pipeline, LLC, has received more than 1.1 billion cubic feet per
day (Bcf/d) of binding commitments from customers under 10- to
15-year contracts and is moving forward with the pipeline project,
subject to regulatory approvals.
The Ruby Pipeline is an approximately 670-mile interstate pipeline
that will extend from the Opal Hub in Wyoming to a pipeline
interconnect at Malin, Oregon, near California's northern border.
The 42-inch diameter pipeline will have an initial design capacity of
between 1.3 Bcf/d and 1.5 Bcf/d, depending on the final level of
customer commitments, and will be in service by March 2011. El Paso
is in discussions to obtain additional commitments for Ruby and plans
to file a certificate application with the Federal Energy Regulatory
Commission in January 2009.
The capital cost of the Ruby Pipeline will be approximately $3
billion, and El Paso has taken two significant steps to manage the
project costs. First, it has signed purchase contracts with two steel
mills for all of the pipe required for the project. In addition, it
has executed incentive-based contracts with a consortium of three
Now that we have sufficient capacity commitments from customers, we
in turn have committed to go forward with the Ruby Pipeline Project,
said Jim Cleary, president of El Paso's Western Pipeline Group.
Ruby has proven itself as an attractive project for producers and
end users in western states, and we are on track to have this
much-needed pipeline capacity ready in less than three years.
El Paso will finance Ruby through a combination of free cash flow,
project financing and other forms of capital, and does not plan to
issue equity for this project. El Paso also may elect to bring in
El Paso's committed backlog of new pipeline growth projects is now
approximately $7 billion, including Ruby. These are projects that
are all substantially fully contracted with customers and will be
placed in service over the next five years.
For more information on the Ruby project, visit www.rubypipeline.com.
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. For more
information, visit www.elpaso.com.
El Paso Corporation Cautionary Statement Regarding Forward-Looking
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 federal,
state and local regulatory approvals; our ability to successfully
construct and operate the proposed facilities described in this
release on time and within budget; our ability to obtain additional
contractual commitments; changes in steel prices for a portion of the
pipeline to be purchased from our steel mills; creditworthiness of
our shippers; the successful close of our financing transactions;
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.
Office: (713) 420-5855
Office: (713) 420-6828
SOURCE: El Paso Corporation