El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
Tennessee Gas Pipeline Announces Open Season Results
Houston, Texas, April 9, 1998 -Tennessee Gas Pipeline Company, a business unit of
El Paso Energy Corporation (NYSE:EPG), announced today results of the binding open
seasons for the Eastern Express Project 2000 and the Express 500 Expansion Project.
Precedent agreements have been executed with shippers for both projects, and Tennessee Gas
Pipeline remains on schedule for filing applications with the FERC later this year.
"Eastern Express Project 2000 and Express 500 were developed to meet the needs of
our customers," said John Somerhalder, president of Tennessee Gas Pipeline Company.
"We will continue to work with shippers in the supply and market areas to phase in
additional capacity as it is needed. Our existing system is well positioned to respond to
market needs on a rational and economically sound basis."
Eastern Express Project 2000 will provide gas transportation service to growth markets
in New England, primarily driven by significant development activity in the power
generation sector. Tennessee Gas Pipeline received precedent agreements covering
transportation of 900 million cubic feet per day (MMcf/d) to New England. Shippers
included power generators, marketers and LDCs. Receipts were predominantly from the
planned interconnects with the Portland Natural Gas Transmission System and the Maritimes
& Northeast Pipeline projects, and from Niagara Falls, New York at the interconnection
with TransCanada Gas Pipeline. Tennessee Gas Pipeline is currently assessing the contracts
and is in discussion with shippers to avoid redundancies and clarify contracting issues
before commencing the design.
The Express 500 Project provides shippers with firm transportation capacity in the Gulf
of Mexico supply area by alleviating current and projected bottlenecks along Tennessee Gas
Pipeline's 500 line. Express 500 is an important solution to the need for additional
infrastructure to handle significant incremental natural gas supplies being developed in
the deep waters of the Gulf of Mexico. Tennessee Gas Pipeline has received precedent
agreements for approximately 220 MMcf/d for service from Gulf Coast sources to various
pipeline interconnects, predominantly in Tennessee Gas Pipeline's Gulf Coast supply
region. Shippers are from the producer, marketer and end user sectors. These contracts are
also being reviewed, and design work will commence in the near future.
With over $9 billion in assets, El Paso Energy Corporation provides energy
solutions through five business units: Tennessee Gas Pipeline Company, El Paso
Natural Gas Company, El Paso Field Services Company, El Paso Energy Marketing
Company, and El Paso Energy International Company. The company owns the nation's
only integrated coast-to-coast natural gas pipeline system and has operations in
interstate natural gas transmission, gas gathering and processing, energy marketing, and
international 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 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.