El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Natural Gas Company Announces El Paso Merchant Energy-Gas, L.P. as Successful Bidder for Firm Capacity
HOUSTON, TEXAS, February 15, 2000ŚEláPaso
Natural Gas Company, a business unit of EláPaso Energy Corporation (NYSE:EPG), has
awarded 1,248,975 MMBtu/d of capacity on its system to EláPaso Merchant Energy-Gas,
L.P., also a unit of EláPaso Energy Corporation, for $38.5 million for the fifteen
month period March 1, 2000 through May 31, 2001.
The award of capacity is the result of an open posting on EláPaso
Natural Gas Company's electronic bulletin board that was held from Monday, February
7, 2000 through Monday, February 14, 2000. Twenty-five bids were submitted for part or all
of the available capacity of 1,248,975 MMBtu/d that was offered for the period March 1,
2000 through Mayá31,á2001.
After evaluating the bids under the methodology disclosed in the posting,
EláPaso Merchant Energy-Gas, L.P. was awarded the 1,248,975 MMBtu/d of capacity for a
term extending from March 1, 2000 through May 31, 2001.
"We are pleased to have successfully concluded this open
season," said PatriciaáA.áShelton, president of EláPaso Natural Gas
Company. "With the level of interest that was expressed in this competitive bidding
process, the market has once again confirmed the value of this capacity. We believe the
value of EláPaso Natural Gas' capacity will increase even further as the
clockwise shift in North American gas deliveries continues into the future."
Due to the requirements of EláPaso Natural Gas' tariff, the
award was in three contracts. The contracts can be seen on EláPaso Natural Gas'
electronic bulletin board beginning tomorrow morning and on EláPaso Energy
Corporation's web page (www.epenergy.com) later this week.
This is the fourth time EláPaso Natural Gas has sold this capacity.
For 1998 and 1999, Dynegy Energy Marketing bought this capacity after various postings on
EláPaso Natural Gas' electronic bulletin board. Then in December 1999, the
capacity was sold to an undisclosed party under a pre-arranged deal which was posted on
EláPaso Natural Gas' electronic bulletin board. Enron North America was
subsequently awarded the capacity after submitting a higher bid for the capacity. After
the Federal Energy Regulatory Commission modified certain provisions of the contract,
EláPaso Natural Gas and Enron North America terminated the sale after only one
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 January 18, 2000, 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.
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.