HOUSTON, TX -- (Marketwire) -- 07/13/10 -- El Paso Corporation (NYSE: EP) today announced that it has received a Bureau of Land Management (BLM) right-of-way grant for its Ruby Pipeline project. The grant is subject to final completion of cultural treatment plans and related agreements on federal lands along Ruby's 680-mile route. Ruby previously received a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC), and it will begin construction as soon as it receives a FERC Notice to Proceed and Construct. The $3 billion project is scheduled to be in service in March 2011.
"We are very pleased to receive conditional BLM approval for this important infrastructure project," said Jim Cleary, president of El Paso's Western Pipeline Group. "We expect to satisfy the BLM conditions and receive our FERC notice to proceed very soon and begin construction shortly thereafter. Once constructed, Ruby will play an important role in linking abundant supplies of cleaning-burning natural gas in the Rockies to markets in western states, helping fuel economic growth in an environmentally friendly manner."
Ruby is a 42-inch interstate natural gas transmission pipeline, which will access significant Rockies supplies and make them available to consuming markets in California, Nevada, and the Pacific Northwest. Ruby will transport natural gas from an existing supply hub at Opal, Wyoming, to interconnections near Malin, Oregon. It will have an initial design capacity of 1.5 billion cubic feet per day.
El Paso has entered into agreements with Global Infrastructure Partners (GIP), whereby GIP will invest up to $700 million in the Ruby project. Upon satisfaction of various closing conditions, GIP will acquire a 50 percent equity interest in the project.
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.
Global Infrastructure Partners
Global Infrastructure Partners ("GIP") is an independent infrastructure fund that invests worldwide in infrastructure assets and businesses in both OECD and select emerging market countries. GIP targets investments in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in New York, London and Hong Kong with an affiliate in Sydney and portfolio operations headquarters in Stamford, Connecticut. For more information, visit www.global-infra.com.
Cautionary Statement Regarding Forward-Looking Statements
This release includes certain forward-looking statements and projections. 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; 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.
El Paso Corporation
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Global Infrastructure Partners