El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy Announces Third Brazilian Power Project in Two Months
HOUSTON, TEXAS, August 18, 1997-EláPaso Energy International Company, a business unit of
EláPaso Energy Corporation (NYSE:EPG), has agreed to construct a 250 megawatt (MW) power
plant in Manaus, the capital city of the state of Amazonas in northern Brazil.
Construction is on a fast track to help relieve frequent blackouts and power shortages in
the city. These shortages are a result of a rapid growth in electrical demand and an
unusually dry period causing a reduction in hydroelectric generating capacity.
"These blackouts and shortages have been extremely severe in the city of Manaus
because it is remotely located and not connected to the Brazilian electrical power
grid," said John Hushon, president of EláPaso Energy International Company.
"We're working very closely with Eletrobras and Eletronorte to expedite the
process in order to get power to the people who live in and around this capital
The $100 million Manaus Power Project is scheduled to be built in three phases. The
first phase is a 44 MW unit that is expected to be on-line and delivering electricity to
the city by mid-November of this year-less than 120 days from project commitment. The
remaining two phases of the project are planned to be operational in early January 1998.
Construction for the first unit has already begun in Houston and will be airlifted to
Manaus. Initially, the plant will be simple cycle turbine generators powered by fuel oil.
EláPaso Energy International plans to convert the plants to natural gas-fired combined
cycle plants within the next four to five years.
Power from the plants will be sold under a four year contract to Eletronorte with an
option to extend the agreement another one to six years. EláPaso expects to conclude an
arrangement with a partner for the project in about 30 days and to finance the project at
year end startup.
"Manaus is one of the most rapidly growing industrial centers in Brazil,"
said Hushon. "We have once again demonstrated that our quick project response time
can help alleviate significant power shortages. EláPaso Energy International is committed
to developing the overall power infrastructure of Brazil which will raise that
country's standard of living by making natural gas and electricity more affordable
and more accessible."
In addition to the Manaus Power Project, EláPaso Energy International is a partner in
the $2 billion Bolivia to Brazil pipeline which is under construction. The company has
plans to build, own and operate a 150 MW power plant in the state of Mato Grosso do Sul in
Western Brazil and a 450-megawatt (MW) gas fired power plant in the north of the state of
Rio de Janeiro, Brazil located in the region of MacaÚ.
EláPaso Energy Corporation provides total energy solutions through five business units:
EláPaso Natural Gas Company, Tennessee Gas Pipeline Company, EláPaso Field Services
Company, EláPaso Energy Marketing Company and EláPaso Energy International Company. With
offices worldwide, the company has operations in interstate natural gas transmission, gas
gathering and processing, energy marketing, and international energy infrastructure
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. While the company makes these statements and projections in
good faith, neither the company nor its management can guarantee that the anticipated
future results will be achieved. Reference should be made to the company's (and its
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.