El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
2-Jul-2008
El Paso Pipeline Partners, L.P. Announces WIC ExpansionHOUSTON, TX, Jul 02, 2008 (MARKET WIRE via COMTEX News Network) -- 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.
Contacts
Investor-Media Relations
Bruce L. Connery
Vice President
Office: (713) 420-5855
Media Relations
Richard Wheatley
Manager
Office: (713) 420-6828
SOURCE: El Paso Pipeline Partners
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