HOUSTON, TX, Jul 28, 2010 (MARKETWIRE via COMTEX) --

El Paso Corporation (NYSE: EP) announced today that its wholly owned subsidiary, Tennessee Gas Pipeline Company (TGP), has executed binding, 15-year term agreements with Cabot Oil & Gas Corporation, Anadarko Energy Services Company and Seneca Resources Corporation for up to 250,000 dekatherms per day of incremental firm transportation capacity from the Marcellus Shale region to existing markets in New England and Niagara via its Northeast Supply Diversification Project (NSD Project).

"The NSD Project is TGP's third expansion in as many years out of the Appalachian / Marcellus supply basins," said Bryan Neskora, senior vice president and chief commercial officer of Tennessee Gas Pipeline. "In addition to strengthening TGP's position as the premier pipeline in the Northeast, the NSD Project provides TGP's customers with additional diversity by increasing transportation capacity between growing Marcellus supplies and markets in New England and Niagara."

To accommodate shippers' requested transportation paths from Marcellus receipt points to markets in New England and at Niagara, the NSD Project combines TGP's original NSD Project, which provided transportation to New England, with TGP's Marcellus to Leidy and Niagara Project (MLN Project), which provided transportation service to Niagara. The combined projects are now called the NSD Project.

TGP will expand capacity through a combination of pipeline looping, compressor station modifications, and use of existing capacity. Specifically, the NSD Project involves the installation of approximately seven miles of 30-inch diameter pipeline along TGP's existing right-of-way, compressor modifications on the Niagara Spur, and the utilization of existing and off-system capacity.

Capital for the NSD project is expected to be less than $100 million. TGP anticipates filing a certificate application with the Federal Energy Regulatory Commission in late 2010. Pending regulatory approvals, construction would begin in the first half of 2012, with a November 1, 2012 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 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 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 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; creditworthiness of our shippers; 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.

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Bruce L. Connery
Vice President
Office: (713) 420-5855

Media Relations
Robert C. Newberry
Principal
Office: (713) 420-7298

SOURCE: El Paso Corporation