El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
Southern Natural Gas Announces Completion of First Phase of Pipeline Expansion Project
HOUSTON, TEXAS, June 24, 2002—Southern Natural Gas
Company, a subsidiary of El Paso Corporation (NYSE:EP), today
announced that it is placing the first phase of its South System Expansion
I project into service. The 35-mile pipeline project includes various
large-diameter pipes and 39,000 horsepower of compression, increasing the
firm capacity on Southern Natural's pipeline system by 140 million cubic
feet per day (MMcf/d). Southern Company Services, South Carolina Pipeline
Corporation, and the City of LaGrange, Georgia, executed long-term, firm
transportation service agreements to support the project. The second phase
of this project, which is scheduled to be in-service June 2003, will
provide an additional 196 MMcf/d of firm capacity.
The South System I project is the first of three such market-area
projects that Southern Natural will complete during the next two years.
These three pipeline system expansions are fully supported by long-term,
firm transportation agreements, and are scheduled to be in-service by May
2004. The three expansions will increase Southern Natural's pipeline
system capacity by 700 MMcf/d at a capital cost of approximately $400
million. More than 90 percent of the total firm capacity created by these
projects will serve new natural gas-fired electric generation plants.
"Our three pipeline expansions will provide firm transportation
for new power plants with a total generation capacity of approximately
5,500 megawatts located across Alabama, Georgia, and South Carolina,"
said Jim Yardley, president of Southern Natural Gas. "We are well
positioned to install the necessary infrastructure for natural gas to
reach new markets in the Southeast and look forward to the timely
completion of the remaining portions of our expansion projects as we
continue to serve all of our customers."
El Paso Corporation is North America's leading provider of natural
gas services. The company has core businesses in natural gas production,
gathering and processing, and transmission, as well as liquefied natural
gas transport and receiving, petroleum logistics, power generation, and
merchant energy services. El Paso Corporation, rich in assets and
fully integrated across the natural gas value chain, is committed to
developing new supplies and technologies to deliver energy to communities
around the world. For more information, visit www.elpaso.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 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.