El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
Tennessee Gas Pipeline and CNG Transmission Announce the Atlantic Alliance Project
Houston, Texas, and Clarksburg, W. Virginia, July 19, 1999-Tennessee Gas Pipeline Company, a business unit of El Paso Energy Corporation
(NYSE:EPG), and CNG Transmission Corporation, a subsidiary of Consolidated Natural Gas
Company (NYSE: CNG), announced today the Atlantic Alliance Project to jointly offer
seamless natural gas transportation service of up to 750,000 dekatherms per day from the
Chicago market center and the Niagara Import Point into eastern markets.
The Atlantic Alliance will combine the use of existing facilities and rights-of-way
with construction of limited incremental facilities to provide the new services.
Construction will be in phases to correspond to customer service requests. However, the
full 750,000 dekatherms per day could be available as early as November 1, 2001.
John Somerhalder, president of Tennessee Gas Pipeline, stated "With the Atlantic
Alliance, Tennessee and CNG are able to capture operational efficiencies between their
systems to offer a competitive service that can be phased in as the market evolves. With
the uncertainties that exist in today's market, the Atlantic Alliance represents a
rational way to address growth as it occurs."
The Atlantic Alliance will target developing markets in New York, Pennsylvania, and New
England. It will include access to Transco and the proposed MarketLink Project at Leidy,
Pa., and to Columbia and the proposed Millennium Project at Horseheads or Greenwood, N.Y.
The Atlantic Alliance rate from Chicago to western New York or Pennsylvania will be
approximately $0.47 per dekatherm. Because of the extensive use of existing facilities,
the Atlantic Alliance will be able to offer service quickly, with 100,000 dekatherms per
day available this winter.
Ron Adams, CNG senior vice president in charge of regulated business, said "We
find the emerging power generation market to be an exciting opportunity for CNG and
Tennessee. Together, we can offer this market highly competitive services timed to meet
its needs while remaining sensitive to environmental and landowner issues."
An open season is planned for the Atlantic Alliance in August, with additional details
available later this month.
With over $10 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, power
generation and international infrastructure development. On June 10, the stockholders of
both El Paso Energy and Sonat Inc. overwhelmingly voted in favor of merging the two
organizations. The merger is expected to close in the third or fourth quarter of this
year, concurrent with the completion of regulatory reviews. Visit El Paso
Energy's web site at www.epenergy.com.
CNG Transmission, headquartered in Clarksburg, W.Va., is the interstate natural gas
transmission subsidiary of Pittsburgh-based Consolidated Natural Gas Company, a fully
integrated natural gas company. CNG is in the process of merging with Dominion Resources,
Inc., to become one of the nation's largest integrated energy companies, with 4
million customers, 20,000 megawatts of electric generating capacity, and more than 3
trillion cubic feet equivalent of oil and natural gas reserves. CNG Transmission provides
gas transportation and storage services to other major pipelines and to markets in the
Midwest, Mid-Atlantic, and Northeast regions of the country.
CNG Media Relations Contacts
Robert Fulton, CNG Transmission
Dan Donovan, CNG
CNG Investor Relations Contact
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.