HOUSTON, TX, Oct 25, 2010 (MARKETWIRE via COMTEX) --

El Paso Midstream Group, Inc., a subsidiary of El Paso Corporation (NYSE: EP), and Spectra Energy Corp (NYSE: SE), today announced the execution of a Memorandum of Understanding (MOU) to jointly develop the proposed Marcellus Ethane Pipeline System (MEPS) project. Under the terms of the MOU, El Paso Midstream and Spectra Energy will each own a 50-percent interest and jointly operate MEPS.

The MEPS project, previously announced by El Paso, would be designed to transport up to 60,000 barrels per day of ethane from fractionation plants in the ethane-rich Marcellus Shale production region to interconnect points with third-party ethane pipelines and storage facilities in the Gulf Coast area. With the newly announced joint effort, MEPS will utilize both existing rights-of-way and infrastructure of Spectra Energy's Texas Eastern pipeline system in Pennsylvania and Ohio, as well as portions of El Paso's Tennessee Gas Pipeline system from Ohio to the Gulf Coast.

"This is an exciting opportunity to bring together two of the leading pipeline infrastructure companies in the industry to provide an attractive alternative for producers in the growing Marcellus development," said Mark Leland, president, El Paso Midstream Group. "Our two organizations have been operating in the region for decades and together we look forward to providing additional resources to help meet our country's growing energy needs."

"We're very pleased to be working with El Paso Midstream on this important project," said Guy Buckley, group vice president, Corporate Development and Strategy, Spectra Energy. "The MEPS project offers Marcellus producers a cost-effective, long-term solution for moving their ethane production to multiple high-demand markets, and provides the market with an attractive opportunity to access ethane supplies from this growing supply region. In addition, the combined footprints and resources of both companies further enhance the project's overall development, execution and market breadth," continued Buckley.

The MEPS project will primarily use existing facilities, rights-of-way and utility corridors, which will greatly minimize impacts to the environment and landowners and provide substantial cost efficiencies and improved project timing. New construction will include approximately 200 miles of pipeline and compression facilities, as well as vaporization and liquefaction facilities.

Targeted in-service for the project is late 2013.

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. El Paso has interests in more than 42,000 miles of interstate natural gas pipeline serving all of the major supply regions and leading markets across the U.S. For more information, visit www.elpaso.com. For more information about El Paso Midstream Group, visit www.elpaso.com/midstream.

Spectra Energy Corp, a FORTUNE 500 company, is one of North America's premier natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage, and distribution. For nearly a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company operates in the United States and Canada approximately 19,100 miles of transmission pipeline, more than 305 billion cubic feet of storage, as well as natural gas gathering and processing, natural gas liquids operations and local distribution assets. The company also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Spectra Energy is a member of the Dow Jones Sustainability World and North America Indexes and the U.S. S&P 500 Carbon Disclosure Project's Leadership Index for both Carbon Performance and Disclosure. For more information, visit www.spectraenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

This release includes certain forward-looking statements and projections. The companies have 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 sufficient commitments from shippers to support the pipeline, our ability to obtain and maintain in force and effect all necessary federal, state and local regulatory approvals on a timely basis, including receipt by Tennessee Gas Pipeline of abandonment authorizations from the FERC with regard to the natural gas pipeline to be converted to ethane service; our ability to successfully construct and operate the proposed facilities described in this release on time and within budget; our ability to obtain the necessary funding to develop and construct the pipeline; general economic conditions in geographic regions or markets served by the proposed pipeline, or where the pipeline is located; and other factors described in the companies' (and their affiliates') Securities and Exchange Commission filings. While the companies make these statements and projections in good faith, neither the companies nor their managements 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 companies assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the companies, whether as a result of new information, future events, or otherwise.

Contacts:

El Paso Corporation

Investor-Media Relations
Bruce Connery, Vice President
(713) 420-5855

Media Relations
Richard Wheatley, Manager
(713) 420-6828

Spectra Energy Corp

External Affairs
Wendy Olson
(713) 627-4072
24-Hour Media Line: (713) 627-4747

Investor Relations
John Arensdorf
(713) 627-4600

SOURCE: El Paso Corporation