El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy Announces Samalayuca Pipeline in Operation
Houston, Texas, January 15, 1998-EláPaso Energy Corporation (NYSE:EPG) announced today
that the $35 million dollar Samalayuca Pipeline is operational and flowing clean-burning
natural gas into Mexico.
EláPaso Natural Gas Company and EláPaso Energy International Company,
business units of EláPaso Energy Corporation, are partnered with Pemex Gas Y
Petroquimica Basica in a 50/50 joint venture agreement. The 45-mile pipeline project,
which includes 22 miles of pipe in the United States and 23 miles of pipe in Mexico, has a
capacity of 212 MMBtu/d.
Pipeline operations began on December 20, 1997, initially transporting 70 million cubic
feet a day (MMcf/d) of natural gas to the Samalayuca I natural gas-fired power plant in
Northern Mexico and to consumers in the state of Chihuahua. The Samalayuca II Power Plant
will begin receiving gas supplies this year as it becomes operational in three phases.
"The international partnership between EláPaso Energy and Pemex is an
historic accomplishment and creates the basis for a prosperous future for both sides of
the border," said William A. Wise, chairman, president, and chief executive officer
of El Paso Energy. "This pipeline will provide the necessary fuel to the Samalayuca
Power plants to generate much needed electricity for the people of Mexico."
The Samalayuca pipeline will transport natural gas from EláPaso Natural Gas
Company's Hueco Compressor Station, located east of EláPaso. The gas will
continue south across the border approximately 30 miles to the Samalayuca I and II Power
Plants. The pipeline will supply the energy demands of the cities of Juarez, Mexico and
Chihuahua, Mexico and provide gas at a competitive price for consumers.
The Mexico portion of the pipeline, known as Gasoductos de Chihuahua, is the first
privately owned and operated natural gas pipeline in Mexico. The construction of the
pipeline was the result of an international public bid by the Comisiˇn Federal de
Electricidad (CFE), who requested transportation service of 172 MMcf/d of natural gas
through a pipeline that would transport this energy from the United States to the
Samalayuca Power plants. In addition, Pemex Gas Y Petroquimica Basica will transport 40
MMcf/d for customers on its system.
The transportation system is managed through a Supervisory Control And Data Acquisition
(SCADA) system, which will be controlled and operated remotely from the EláPaso
Natural Gas operations control center. This system measures the flow in real time at each
measurement station, obtaining information on the conditions and physical characteristics
of the gas such as composition, temperature, heat value and pressure.
EláPaso Energy Corporation provides total energy solutions through five business
units: EláPaso Natural Gas Company, Tennessee Gas Pipeline Company, EláPaso
Field Services Company, EláPaso Energy Marketing Company and EláPaso Energy
International Company. With offices worldwide, the company has operations in interstate
natural gas transmission, gas gathering and processing, energy marketing, and
international energy infrastructure development.
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 companies have 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. While the companies make these statements and projections in good faith,
neither the companies nor their managements can guarantee that the anticipated future
results will be achieved. Reference should be made to the companies' (and their
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.