El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Corporation Provides Update on Gulf of Mexico Operations
HOUSTON, Sept. 9 /PRNewswire-FirstCall/ -- El Paso Corporation (NYSE: EP)
provided today an updated assessment on the impact of Hurricane Katrina on its
Gulf of Mexico operations. El Paso is pleased to report that all of its
employees in the affected region have been located. Many of those employees
lost their homes, and they are now receiving temporary housing and supplies
from the company. Support activities for these employees continue.
Interstate Natural Gas Pipeline Operations
Approximately 3 billion cubic feet per day was initially shut-in on El
Paso's three natural gas pipeline systems in the Gulf of Mexico as a result of
Hurricane Katrina. Currently, there are 700 million cubic feet per day
(MMcf/d) of production shut-in on Tennessee Gas Pipeline (TGP) and 550 MMcf/d
on Southern Natural Gas (SNG). ANR Pipeline has returned to full capacity.
Onshore, TGP has begun to assess the damage at its Port Sulphur compressor
station as high water in the area has receded. Offshore, TGP has several
confirmed and suspected leaks in its pipelines, and diving operations are
currently underway to inspect them and assess damage. Inspections and surveys
of other lines are expected to take several weeks.
Flood waters have receded at SNG's Toca Compressor Station and initial
assessments are beginning. The assessments include investigations of
compressor units, liquids handling and dehydration facilities, piping, and
Initial aerial damage assessments have been completed for all of SNG's
offshore facilities. The most serious damage to offshore facilities appears
to be primarily to pipeline risers on three third-party production platforms
that have been destroyed and to measurement equipment at some locations. SNG
has also identified damage to its junction platform at Main Pass 298.
Complete damage assessments will require on-site investigation.
Initial surveys of SNG's sub-sea pipelines are underway. Based on
preliminary information, the company is not aware of any significant damage to
SNG's offshore pipelines. However, the assessment is in its early stages.
The timing of additional pipeline volumes becoming available is difficult
to predict given the uncertainty of potential subsea repairs on TGP, the
ongoing evaluation of producers' platforms upstream of El Paso's pipelines,
and the potential for processing constraints if third-party processing
facilities are not available.
El Paso's production in the Gulf of Mexico, which was 205 million cubic
feet equivalent per day (MMcfe/d) before the storm, is now nearly 170 MMcfe/d.
Restoring the remaining production is largely dependent on the timing of
repairs to properties operated by third parties. One El Paso platform located
at West Delta 137 was destroyed in the storm, but that unmanned platform
accounted for only 1 MMcfe/d, net to the company.
As previously reported, El Paso's south Louisiana gathering and processing
assets have returned to operational status.
El Paso Corporation provides natural gas and related energy products in a
safe, efficient, and dependable manner. The company owns North America's
largest natural gas pipeline system and one of North America's largest
independent natural gas producers. For more information, visit
Cautionary Statement Regarding Forward-Looking Statements
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,
including, without limitation, the ultimate extent of the damages to our
pipeline and production facilities and of other producers, the ability to
repair any damage to such pipeline and production facilities and to restore
transportation services and oil and gas production deliveries on a timely
basis; the costs of effectuating such repairs and replacement facilities; the
receipt of any related necessary governmental approvals and other factors
described in the company's (and its affiliates') Securities and Exchange
Commission filings. While the company makes these statements and projections
in good faith, neither the company nor its management can guarantee that
anticipated future results will be achieved. Reference must be made to those
filings for additional important factors that may affect actual results. The
company assumes no obligation to publicly update or revise any forward-looking
statements made herein or any other forward-looking statements made by the
company, whether as a result of new information, future events, or otherwise.
SOURCE El Paso Corporation
Investor and Public Relations, Bruce L. Connery, Vice
President, 1-713-420-5855, or fax, 1-713-420-4417
El Paso Corporation
8574 09/09/2005 12:19 EDT http://www.prnewswire.com