El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy Announces Project with Enron to Construct New Pipeline from Georgia to Florida
HOUSTON, TEXAS, April 25, 2000ŚEláPaso Energy Corporation (NYSE:EPG) today announced plans to
jointly construct with Enron Corp. (NYSE:ENE) a large diameter jurisdictional
pipeline from Savannah, Georgia to a point of interconnection with Florida Gas
Transmission Company (which is owned by a jointly owned subsidiary of Enron and
EláPaso) near Jacksonville, Florida. The new pipeline, Cypress Natural Gas
Company, will provide southeastern Georgia and Florida with an additional
pipeline supplier and access to an important new gas supply source. In addition
to the new pipeline, Florida Gas Transmission plans to develop and market an
expansion of its system south of Jacksonville in order to serve new power
generation loads currently being developed in central and southern Florida.
Southern LNG Company, an affiliate of EláPaso Energy, was
recently authorized by the Federal Energy Regulatory Commission (FERC) to
reactivate its Liquefied Natural Gas (LNG) terminal near Savannah. The
regasified LNG will be the primary supply source for the new pipeline with
additional gas supplied by Southern Natural Gas Company, a business unit of El
Paso Energy, and Florida Gas.
"We believe this pipeline project will greatly enhance our
ability to serve natural gas and power generation markets in Georgia and
Florida," said JohnáW.áSomerhalder, president of EláPaso Energy's
pipeline group. "We are pleased to be working with Enron on such an
A preliminary route has been selected for the 160-mile pipeline
pending final routing decisions that will be made after discussions are held
with local officials, prospective landowners, and various environmental
agencies. Cypress plans to file an application with the FERC in January 2001 for
authorization to construct and operate the pipeline. Construction is expected to
begin in the third quarter of 2002, and the pipeline's projected in-service
date is April 2003. Plans for the new pipeline will be finalized after an open
season that will be held from May 1 through June 30, 2000.
Florida Gas also announced plans to hold an open season from May
1 to June 30 to solicit bids for an expansion of Florida Gas' 4,700-mile
pipeline system. Plans for the expansion will be finalized after the open season
responses are evaluated.
"We believe the Cypress project, coupled with an expansion
of Florida Gas' pipeline, is a very cost effective and environmentally sound
option for meeting the additional demand for natural gas in the state,"
said Rock Meyer, president of Florida Gas Transmission. "We also believe
these projects will enable us to diversify the gas supply sources we can make
available to our customers in Florida."
With over $16 billion in assets, EláPaso Energy Corporation
provides comprehensive energy solutions through its strategic business units:
Tennessee Gas Pipeline Company, EláPaso Natural Gas Company, Southern
Natural Gas Company, EláPaso Merchant Energy Company, EláPaso Energy
International Company, EláPaso Field Services Company, and EláPaso 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 Januaryá18,á2000, EláPaso Energy announced that it has agreed to
merge with The Coastal Corporation in a deal valued at $16 billion, including
approximately $6 billion of assumed debt and preferred equity. Visit EláPaso
Energy's web site at www.epenergy.com.
Enron is one of the world's leading electricity, natural gas and
communications companies. The company, which owns approximately $33 billion in
energy and communications assets, produces electricity and natural gas,
develops, constructs and operates energy facilities worldwide, delivers physical
commodities and financial and risk management services to customers around the
world, and is developing an intelligent network platform to facilitate online
business. Enron's internet address is www.enron.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.