El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
Tennessee Gas Pipeline Company, MCN Energy Group Inc. Agree to Form LNG Venture, Announce Open Season
HOUSTON, TEXAS, June 4, 1997-Tennessee Gas Pipeline Company, a business unit of
El Paso Energy Corporation (NYSE:EPG), and MCN Investment Corporation (MCNIC), a
subsidiary of MCN Energy Group Inc. (NYSE:MCN) today announced plans to form a joint
venture to build a liquefied natural gas (LNG) facility on the Delmarva Peninsula, near
Delaware's border with Maryland.
The new venture, Continental States Peaking Services L.L.C., will be equally owned by
Tennessee Gas and MCNIC. The proposed $40 to $50 million project would provide
liquefaction, storage and vaporization services beginning in early 2000. The Continental
States facility would be directly connected to the Eastern Shore Natural Gas pipeline
system, with access to the Transcontinental Gas Pipe Line and Columbia Gas Transmission
systems. Several nearby satellite LNG storage facilities also could be supplied by this
"This project offers a choice of high-value services to our Northeast
customers," said John Somerhalder, president of Tennessee Gas Pipeline Company.
"Pipeline capacity into this region is severely constrained during the peak winter
months, but generally available in the warmer months. The Continental States facility will
allow customers to store lower-cost gas in the market area and have it ready for reliable
delivery when it's needed most."
Rai Bhargava, MCNIC president and chief executive officer, said, "Depending on the
level of interest shown by potential customers in our open season, this facility could
provide between 1 and 2 billion cubic feet equivalent of natural gas storage service,
which equates to peak-day withdrawal capacity of 100 to 200 million cubic feet per day of
revaporized natural gas."
Open season for the joint project will begin at 8 a.m. eastern standard time (EST) on June
18, 1997 and end at 5 p.m. EST on July 25, 1997. The project's size, capacity and
feasibility will be based on the open season results. Following the completion of a
successful open season, Continental States plans to file for Federal Energy Regulatory
Commission approval of the project.
Interested parties seeking a copy of the open season notice or more information about the
project, please contact Ralph De Geeter at (203) 458-9444, fax: (203) 458-7081.
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. For
more information about El Paso Energy Corporation, access the World Wide Web at
MCN Energy Group Inc. is a $3.7 billion (assets) diversified energy holding company with
natural gas markets and investments throughout North America and in India. The company
operates through two major business groups: The Diversified Energy group, operating
through MCNIC, is involved in oil and gas exploration and production, gas gathering,
transmission, processing and storage, energy marketing, electric power generation and
other energy-related businesses; The Gas Distribution group consists principally of
Michigan Consolidated Gas Company, a natural gas distribution and transmission company
servicing 1.2 million customers in more than 500 communities throughout Michigan.
Information about MCN Energy Group is available on the World Wide Web at http://www.mcnenergy.com.
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 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. While the companies make these statements and projections in good faith,
neither the companies nor their managements can guarantee that the anticipated future
results will be achieved. Reference should be made to the companies' (and their
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.