El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy International Announces Phase II of Brazilian Termonorte Project
HOUSTON, TEXAS, MAY 19, 2000-El Paso Energy
International, a business unit of El Paso Energy Corporation (NYSE:EPG),
announced today that it signed a Power Purchase Agreement (PPA) for the second
phase of the Termonorte Project. The thermal power project, located in the city
of Porto Velho, will supply power to the state of Rondonia in western Brazil.
Phase II consists of a 345-megawatts (MW) gas turbine-based combined cycle plant
that will bring the total capacity of the electric power plant to 409 MW and
will complete the build-out of the project. Commercial operations for Phase II
are scheduled to begin in October 2001.
El Paso Energy International, which has a 40-percent stake in the $280
million project, will complete construction for the first phase and begin
supplying 64 MW of electric power to the city of Porto Velho in July of this
year. Phase II will give impetus to the development of indigenous natural gas
resources and a related natural gas pipeline from the Urucu gas basin.
"We look forward to the successful implementation of Phase I and we're
pleased to be moving ahead with Phase II, which will deliver much needed
energy to the people of the Amazon region," said John D. Hushon, president
of El Paso Energy International. "With this project, El Paso will be the
largest independent power producer in Brazil, solidifying our strategy of
providing energy solutions to key markets around the world."
El Paso Energy International is an active participant in the Brazilian energy
market and is an investor in the Bolivia-to-Brazil natural gas pipeline. The
company also owns four power plants in Manaus in the State of Amazonas and
supplies 76 percent of the energy generated for that city. Recently, El Paso
Energy International signed a power supply agreement for a 480-MW power project
in Araucária in the State of Paraná and the formation of a joint venture with
General Electric to develop, build, own, and operate
2,000 MW of electric generating capacity in the city of São Paulo.
With over $16 billion in assets, El Paso Energy Corporation provides
comprehensive energy solutions through its strategic business units: Tennessee
Gas Pipeline Company, El Paso Natural Gas Company, Southern Natural Gas
Company, El Paso Merchant Energy Company, El Paso Energy International Company,
El Paso Field Services Company, and El Paso Production Company. The company owns
North America's largest natural gas pipeline system, both in terms of
throughput and miles of pipeline, and has operations in natural gas
transmission, merchant energy services, power generation, international project
development, gas gathering and processing, and gas and oil production. On May 5,
the stockholders of both El Paso Energy and The Coastal Corporation
overwhelmingly voted in favor of merging the two organizations. The combined
company will have assets of
$35 billion and be one of the world's leading integrated energy companies. The
merger is expected to close in the fourth quarter of this year, concurrent with
the completion of regulatory reviews. Visit El Paso Energy's web site at www.epenergy.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.