El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
Tennessee Gas Pipeline Files for Eastern Express Project 2000 and Announces Plans for Next Phase
Houston, Texas, March 17, 1999-Tennessee Gas Pipeline Company, a business unit of El Paso Energy Corporation
(NYSE:EPG), announced today it has filed its application with the
Federal Energy Regulatory Commission for the Eastern Express Project 2000. This project is
scheduled to provide firm transportation service commencing November 2000 from the
interconnect at Haverhill, Massachusetts and the planned interconnect at Dracut,
Massachusetts with the Portland Natural Gas Transmission System and the Maritimes &
Northeast Pipeline to delivery points in New England. Shippers have executed binding firm
transportation agreements for 173,000 dekatherms per day of capacity. This capacity will
primarily be utilized to serve new gas-fired power generation plants in the New England
The new capacity will be created using existing pipe and right-of-way and the
installation of 13,320 horsepower of compression at two existing compressor stations.
Total capital is estimated to be $28 million.
Looking to the future, Tennessee also announced plans for the next phase of Eastern
Express which will focus on emerging capacity requirements in New England and New York.
While Tennessee believes the majority of the capacity will be required in 2002, Tennessee
will work with shippers that have earlier capacity needs. Tennessee will announce the
details of the open season(s) at a later date.
Regarding the plans for constructing the Eastern Express 2000 facilities and soliciting
shipper input for 2001 and 2002, John Somerhalder, president of Tennessee Gas Pipeline,
said, "This is another example of Tennessee's flexibility and responsiveness to
the market. We have been consistent in our message to the market that we can phase in
capacity as the industry is ready for it rather than building mega-projects. The use of
our existing corridors allows Tennessee to minimize the environmental impact while still
delivering an economic project."
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 natural
gas transmission, gas gathering and processing, energy marketing, power generation 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 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.