Tennessee Gas Pipeline Company (Tennessee), a wholly owned subsidiary of El Paso Corporation, together with Equitable Resources, Inc.intend to jointly develop the Northeast Passage Project ("NEP"). Equitable Resources' unique combination status as an integrated energy company with emphasis on Appalachian area natural gas supply, transmission, and distribution allows Equitable to help anchor the project with a planned commitment of up to 300 million cubic feet per day.

The Northeast Passage Project will consist of 471 miles of 36-inch diameter interstate natural gas pipeline with an initial capacity of 1.1 billion cubic feet per day, as well as 70,000 horsepower of compression. The project, designed to provide new transportation service between the terminus of the Rockies Express Pipeline project and northeastern markets, will begin at Clarington, OH, and terminate at a new interconnect with Iroquois Gas Transmission at Pleasant Valley, NY. Along the proposed route described above, the project will also provide strategic interconnections into Transcontinental Gas Pipeline, Texas Eastern Transmission, Algonquin Gas Transmission, and Millennium Pipeline.

In addition, Tennessee proposes to expand its 300 and 200 lines to provide direct access to markets in New York and New England. This project will also interconnect with Tennessee's Gulf Coast mainline in Ohio, providing access to Mid-Continent, Appalachian, and Gulf Coast supplies, including LNG. The project has a planned in-service date of November 1, 2011, subject to documentation between the parties and regulatory approvals.

"The Northeast Passage Project will provide critical new energy infrastructure to transport natural gas directly to city gates and strategic pipeline interconnects in the Northeast and Pennsylvania markets, while providing an alternative supply source for declining Canadian supplies," said Bryan Neskora, Tennessee's senior vice president and chief commercial officer. "We're excited to have a major participant in the natural gas business such as Equitable Resources join us in this important project. Equitable Resources' participation indicates support for the Northeast Passage Project from both the market and supply ends of the pipeline."

"The Northeast Passage Project will have access to the newly resurgent Appalachian Basin where Equitable is the technological leader in horizontal drilling and in providing natural gas gathering and transportation infrastructure," said Murry Gerber, chairman and CEO of Equitable Resources. "We are pleased to join with El Paso on this important project that helps meet the nation's growing energy demand."

Tags: El Paso Corporation, Equitable Resources, Northeast Passage Project