El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
Epic Energy Wins Major Australian Gas Contract
HOUSTON, TEXAS, June 12, 1997-Epic
Energy Pty Ltd (Epic) has been selected to construct, own and operate a pipeline and
compressor expansion project which will deliver natural gas from Australia's
Northwest Shelf to Geraldton, Western Australia, a distance of about 932 miles.
Epic is an integrated energy joint venture among El Paso Energy International
Company, a business unit of El Paso Energy Corporation (NYSE:EPG), CNG International
Corporation, a subsidiary of Consolidated Natural Gas Company (NYSE:CNG), and various
The pipeline project will expand the existing Alinta Gas Dampier Bunbury pipeline through
looping and installing additional compression at an estimated cost of US$250 million. The
increased capacity will be used to supply gas to the planned US$1.1 billion An Feng
Kingstream Mid West Iron and Steel plant in Western Australia. The project will also fuel
the independent gas-fired power station which will provide electricity for the steel
manufacturing process. Initial gas deliveries are expected in late 1999. Full operation
daily gas deliveries are expected to reach roughly 161 MMcf/d shortly thereafter.
"The award of the Kingstream project to Epic represents a recognition that Epic is
the preferred natural gas pipeline operator in Australia," said John Hushon,
president of El Paso Energy International Company. "It's also a restatement
of Epic's determination to maintain and build its status as a major integrated energy
company in the entire Australian market."
Epic currently owns and operates 1,740 miles of natural gas pipeline systems in
Queensland, Australia, and South Australia making it one of the largest pipeline operators
in Australia. Epic is also developing several additional pipeline and power projects in
El Paso Energy Corporation provides total energy solutions through four business
units: El Paso Natural Gas Company, Tennessee Gas Pipeline Company, El Paso Energy
Resources Company and El Paso 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 development.
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.