El Paso Corporation Moving Forward With Ruby Pipeline Project
June 25 2008 - 8:00AM
Marketwired
HOUSTON, TX announced today that its subsidiary, Ruby Pipeline,
LLC, has received more than 1.1 billion cubic feet per day (Bcf/d)
of binding commitments from customers under 10- to 15-year
contracts and is moving forward with the pipeline project, subject
to regulatory approvals.
The Ruby Pipeline is an approximately 670-mile interstate
pipeline that will extend from the Opal Hub in Wyoming to a
pipeline interconnect at Malin, Oregon, near California's northern
border. The 42-inch diameter pipeline will have an initial design
capacity of between 1.3 Bcf/d and 1.5 Bcf/d, depending on the final
level of customer commitments, and will be in service by March
2011. El Paso is in discussions to obtain additional commitments
for Ruby and plans to file a certificate application with the
Federal Energy Regulatory Commission in January 2009.
The capital cost of the Ruby Pipeline will be approximately $3
billion, and El Paso has taken two significant steps to manage the
project costs. First, it has signed purchase contracts with two
steel mills for all of the pipe required for the project. In
addition, it has executed incentive-based contracts with a
consortium of three construction companies.
"Now that we have sufficient capacity commitments from
customers, we in turn have committed to go forward with the Ruby
Pipeline Project," said Jim Cleary, president of El Paso's Western
Pipeline Group. "Ruby has proven itself as an attractive project
for producers and end users in western states, and we are on track
to have this much-needed pipeline capacity ready in less than three
years."
El Paso will finance Ruby through a combination of free cash
flow, project financing and other forms of capital, and does not
plan to issue equity for this project. El Paso also may elect to
bring in equity partners.
El Paso's committed backlog of new pipeline growth projects is
now approximately $7 billion, including Ruby. These are projects
that are all substantially fully contracted with customers and will
be placed in service over the next five years.
For more information on the Ruby project, visit
www.rubypipeline.com.
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 www.elpaso.com.
El Paso Corporation 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 federal, state and local regulatory approvals; our
ability to successfully construct and operate the proposed
facilities described in this release on time and within budget; our
ability to obtain additional contractual commitments; changes in
steel prices for a portion of the pipeline to be purchased from our
steel mills; creditworthiness of our shippers; the successful close
of our financing transactions; 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.
Contacts: Investor-Media Relations Bruce Connery Vice President
Office: (713) 420-5855 Media Relations Richard Wheatley Manager
Office: (713) 420-6828
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