 |
January 3, 2008 |
|
|
|
 |
EL PASO: Sells 25.5% Ruby Pipe Stake to PG&E Corp. for US$2 Bil. El Paso Corporation agreed to sell its 25.5% interest in El Paso's Ruby Pipeline project to PG&E Corporation. Capital expenditures for the project are expected to total approximately US$2 billion. Ruby Pipeline project is 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. 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," Jim Cleary, president of El Paso's Western Pipeline Group, said. "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," Richard Rollo, vice president-Strategic Development and Business Integration for PG&E Corporation, said. "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 disclosed that it is planning to partner in the project with Bear Energy LP, a subsidiary of The Bear Stearns Companies Inc. 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 disclose a formal open season shortly. About PG&E Corporation Headquartered in San Francisco, California, PG&E Corporation (NYSE:PCG) -- http://www.pgecorp.com/ -- is an energy-based holding company. The company's 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. About El Paso Corporation Headquartered in Houston, Texas, El Paso Corporation (NYSE: EP) -- http://www.elpaso.com/ -- is an energy company that provides natural gas and related energy products. The company owns North America's interstate pipeline system, which has approximately 55,500 miles of pipe. It also owns approximately 470 billion cubic feet of storage capacity and a liquefied natural gas import facility with 806 million cubic feet of daily base load send out capacity. El Paso's exploration and production business is focused on the exploration for and the acquisition, development and production of natural gas, oil and natural gas liquids in the United States, Brazil and Egypt. It operates in three business segments: Pipelines, Exploration and Production and Marketing. It also has a Power segment, which holds its remaining interests in international power plants in Brazil, Asia and Central America. Southern Natural Gas Company's business consists of the interstate transportation and storage of natural gas and LNG terminalling operations. Colorado Interstate Gas Company's business consists of the interstate transportation, storage and processing of natural gas. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 20, 2007, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit ratings on El Paso Corp. and subsidiaries. S&P said the outlook remains positive. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Latin America. To receive the Full TCR-LA please CLICK HERE.
