PG&E Corporation to Acquire 25.5 Percent Interest in Ruby Pipeline
December 27 2007 - 9:00AM
PR Newswire (US)
HOUSTON, Dec. 27 /PRNewswire-FirstCall/ -- El Paso Corporation
(NYSE:EP) and PG&E Corporation (NYSE:PCG) announced today that
the companies have entered into a letter of intent for PG&E
Corporation to acquire a 25.5 percent interest in El Paso's Ruby
Pipeline project -- a proposed 680-mile, 42-inch natural gas
transmission pipeline that would begin at the Opal Hub in Wyoming
and terminate at the Malin, Oregon, interconnect, near California's
northern border. Capital expenditures for the project are expected
to total approximately $2 billion. The Ruby Pipeline will have an
initial capacity of 1.2 billion cubic feet per day (Bcf/d) and is
expandable to 2 Bcf/d. It will connect Rocky Mountain natural gas
producers with one of the most attractive natural gas demand
regions in the country and provide natural gas users in northern
California, Nevada, and the Pacific Northwest with competitively
priced natural gas from the nation's most important supply growth
region. Subject to Federal Energy Regulatory Commission and other
regulatory approvals, approvals of respective companies' boards of
directors, and after obtaining necessary customer commitments, the
Ruby Pipeline is anticipated to be in service in the first quarter
of 2011. "PG&E's participation in the Ruby Pipeline project
underscores the importance of this critical infrastructure project
in transporting increasing supplies of natural gas from the Rockies
to key consuming markets," said Jim Cleary, president of El Paso's
Western Pipeline Group. "We are excited to have PG&E as a
partner in this project as we work to meet the future
infrastructure needs of the western states." "We are delighted at
the prospect of partnering with El Paso to help develop the Ruby
Pipeline natural gas project," said Richard Rollo, vice
president-Strategic Development and Business Integration for
PG&E Corporation. "The Ruby Pipeline will provide reliable
access to supplies of Rocky Mountain gas necessary to meet the
growing demand of markets in the western United States." In early
December, El Paso announced that it is planning to partner in the
project with Bear Energy LP, a subsidiary of The Bear Stearns
Companies Inc. (NYSE:BSC), and partnering discussions include Bear
Energy becoming an initial shipper on the pipeline. El Paso is also
in discussions with other prospective shippers and will announce a
formal open season shortly. El Paso Corporation provides natural
gas and related energy products in a safe, efficient, and
dependable manner. The company owns North America's largest
interstate natural gas pipeline system and one of North America's
largest independent natural gas producers. For more information,
visit http://www.elpaso.com/. PG&E Corporation is an
energy-based holding company, headquartered in San Francisco. With
assets valued at $34 billion, its operations include electric and
gas distribution, natural gas and electric transmission, and
electric generation. It is the parent company of Pacific Gas and
Electric Company. For more information, visit the web site at
http://www.pgecorp.com/. 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, our ability to obtain all necessary regulatory
approvals and to successfully construct and operate the proposed
facilities described in this release; general economic conditions
in geographic regions or markets served by El Paso Corporation and
its affiliates, or where operations of the company and its
affiliates are located, 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. DATASOURCE: El Paso Corporation; PG&E Corporation
CONTACT: Bruce L. Connery, Vice President, Investor-Media Relations
+1-713-420-5855, fax, +1-713-420-4417, or media, Richard Wheatley,
Manager, +1-713-420-6828, mobile, +1-832-643-8929, fax,
+1-713-420-6431, both of El Paso Corporation; or Leonard Anderson,
Corporate Communications of PG&E Corporation, +1-415-973-8989;
or Paige Kimos, Corporate Communications of Bear, Stearns & Co.
Inc., +1-212-272-6659 Web site: http://www.elpaso.com/
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