HOUSTON, April 28 /PRNewswire-FirstCall/ -- El Paso Corporation announced today a binding open season for a project under development by the Continental Connector Pipeline Company, a subsidiary of El Paso. The open season will conclude ongoing efforts to finalize shipper commitments.
An initial non-binding open season for the project was conducted in October 2005 and received strong interest from a diverse set of potential customers. Subsequent negotiations with interested parties, which include a significant binding commitment with Chesapeake Energy Corporation, have resulted in a project designed around a capacity of 1 billion cubic feet. The current binding open season, scheduled to start May 1, will solicit firm commitments from shippers for the remaining capacity on the project.
"We are delighted with the interest shown by potential shippers in Continental Connector," said Stephen C. Beasley, president of El Paso's Eastern Pipeline Group. "We are optimistic that we can secure firm commitments and move forward with this project."
The project will link the fastest growing supply areas including the Rockies, Mid-Continent, and the Barnett Shale fields of north Texas, with existing infrastructure at the Perryville, Louisiana, hub, accessing virtually every gas market in the Eastern and Southeastern United States. Taking full advantage of El Paso's existing pipeline systems, Continental Connector would span more than 700 miles and include about 300 miles of new 36-inch diameter pipeline along with leased capacity on other pipeline systems to connect El Paso's Colorado Interstate, WIC, and Cheyenne Plains pipelines to points on the company's ANR Pipeline and Tennessee Gas Pipeline.
This week the Federal Energy Regulatory Commission (FERC) opened a pre- filing docket for the project. The company expects to file for FERC certificate approval for the project by November 2006. Following FERC approval, construction of the project is expected to begin late in the third quarter of 2007 with an in-service date projected in the first quarter of 2008.
Beginning May 1, additional information on the binding open season package and related items can be found by visiting the project Web site at http://www.continentalconnectorpipeline.com/ , by contacting your El Paso marketing representative, or by calling Joe Wyzik at 713-420-4338.
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 http://www.elpaso.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 secure sufficient binding commitments to proceed with this project; our ability to successfully construct, complete and operate this project; the uncertainties associated with governmental regulation; 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.
