El Paso announces MPP project to expand Tennessee Gas PIpeline's 300 line in Pennsylvania

HOUSTON, Texas - El Paso Corp. (NYSE: EP) on Oct. 7 announced that its wholly owned subsidiary, Tennessee Gas Pipeline Co. (TGP), has executed long-term agreements for the MPP project which will expand TGP's 300 Line in Pennsylvania.

The 240,000 dekatherms per day (Dth/d) project includes approximately eight miles of 30-inch pipeline, looping and modifications to four existing compressor stations in Pennsylvania to provide natural gas transportation from the Marcellus Shale supply area to existing delivery points on the TGP system.

All of the capacity is subscribed through agreements with Chesapeake Energy Marketing, Inc., a wholly-owned subsidiary of Chesapeake Energy Corp. for 140,000 Dth/d and Southwestern Energy Services Company, a wholly-owned subsidiary of Southwestern Energy Co., for 100,000 Dth/d.

"We are pleased to announce our fourth expansion project in as many years which brings our total investment in Marcellus infrastructure to $1.3 billion and adds nearly 1.5 Bcf/d of capacity," said Norman Holmes, president of Tennessee Gas Pipeline. "This project leverages TGP's strategic location and provides significant new firm transportation capacity for two prominent Marcellus Shale producers."

Capital for the MPP project is expected to be less than $100 million.

TGP anticipates filing a certificate application for the project with the Federal Energy Regulatory Commission in late 2011. Pending regulatory approvals, construction would begin in 2013, with a Nov. 1, 2013, in-service date.