El Paso Partners buying stake in Southern LNG, Elba Express

SAVANNAH, Ga. - El Paso Pipeline Partners, L.P. on March 25 announced that it has agreed to acquire a 51 percent interest in both Southern LNG Co., LLC. and El Paso Elba Express Co., LLC. from El Paso Corp. for $810 million.
The acquisition, which is said to be the partnership's largest to date, would broaden its asset base with two high-quality assets. Upon completion, El Paso Pipeline Partners would become the majority owner in Southern LNG's Elba Island liquefied natural gas terminal at Savannah and El Paso Elba Express' pipeline which went into service on March 1.
The partnership, which was formed by El Paso Corp., currently owns Wyoming Interstate Co., an interstate pipeline system serving the Rocky Mountain region, a 58 percent interest in Colorado Interstate Gas Co. which operates in the Rocky Mountain region and a 25 percent interest in Southern Natural Gas Co. which operates in the southeastern region of the United States.
El Paso Pipeline said the transaction is expected to close by the end of March 2010 and is being mainly funded from $236 million of cash proceeds from its recent equity issuance. In a separate release, El Paso Pipeline Partners Operating, LLC, a wholly owned operating subsidiary of El Paso Pipeline Partners, announced its plans to issue $425 million of senior notes due 2020.