El Paso Corporation News

Developers of offshore LNG and CNG terminals must decide how much investment to ensure continuous service. The options range from no storage with supply interruptions whenever a ship disconnects from the offloading system, to no storage with two offloading systems designed to accommodate at least one vessel at all times, to offshore liquid storage and possibly underground gas storage with pipeline support to ensure gas is always flowing regardless of weather or operational conditions. To investigate the interruptible versus non-interruptible gas-supply dilemma, Zeus Development has organized a workshop January 29 with presentations from Kathleen Eisbrenner…

It soon will be easier to import natural gas from fuel tankers, without disruption to shoreline communities and the environment, thanks in part to a new deepwater liquid natural gas (LNG) port approved today by the U.S. Maritime Administration. The LNG port, to be built by El Paso Energy Bridge Gulf of Mexico LLC about 116 miles south of New Orleans in the Gulf of Mexico, is a terminal to process and transfer natural gas received from LNG transport ships to a pipeline system, which will carry the natural gas ashore for distribution to U.S. markets. "This new facility will improve efficiency by eliminating the need for a carrier to come all the way into a shore side port and save money in the process," said U.S. Secretary of Transportation Norman Y. Mineta.

It soon will be easier to import natural gas from fuel tankers, without disruption to shoreline communities and the environment, thanks in part to a new deepwater liquid natural gas (LNG) port approved today by the U.S. Maritime Administration. The LNG port, to be built by El Paso Energy Bridge Gulf of Mexico LLC about 116 miles south of New Orleans in the Gulf of Mexico, is a terminal to process and transfer natural gas received from LNG transport ships to a pipeline system, which will carry the natural gas ashore for distribution to U.S. markets. “This new facility will improve efficiency by eliminating the need for a carrier to come all the way into a shore side port and save money in the process,” said U.S. Secretary of Transportation Norman Y. Mineta.

El Paso Global LNG, a subsidiary of El Paso Corporation has signed a Memorandum of Understanding (MOU) to work with the Egyptian Natural Gas Holding Company (EGAS) and the Eqyptian General Petroleum Corporation (EGPC) to investigate opportunities for El Paso to invest in the natural gas sector in Egypt. The MOU will allow the parties to cooperate in the exploration, production, gathering, transportation, and processing of natural gas and the possible development of a liquefied natural gas (LNG) liquefaction plant in Egypt. The parties will begin various studies into Egypt's natural gas sector immediately.

El Paso Global LNG, a subsidiary of El Paso Corporation announced the development of EP Energy Bridge(TM), a new ship-based liquefied natural gas (LNG) regasification system. Using proven offshore buoy technology to moor the ship and proprietary technology to regasify LNG onboard the ship and discharge it through a subsea pipeline, EP Energy Bridge(TM) enables flexible, environmentally safe, and cost-effective delivery of natural gas directly to coastal regions eliminating the need of a conventional land-based terminal. This delivery system is expected to be operational and in service by 2005. "EP Energy Bridge(TM) gives El Paso the ability to serve existing baseload and peaking demand markets…

Rowan Companies, Inc., El Paso Oil & Gas Canada, Inc., an indirect subsidiary of El Paso Corporation, and Canadian Superior Energy Inc. announced the contracting of the Rowan Gorilla V for the initial drilling of El Paso's and Canadian Superior's Marquis Natural Gas Project Offshore Nova Scotia. "The Rowan Gorilla V is one of the largest jack-up drilling rigs operating in the world and in association with Canadian Superior, we are very pleased to see this contract awarded to Rowan," said Harvey Klingensmith, President of El Paso Canada. The Gorilla V is the first of a series of Super Gorilla class jack-ups capable of drilling and producing simultaneously in water depths up to 400 feet in harsh environments like offshore Eastern Canada.

El Paso Corporation issued a statement responding to the unusual trading activity in its stock. "The death of our corporate treasurer, Charles Dana Rice, has been a great loss to our corporation and to me personally," said William A. Wise, chairman, president, and chief executive officer. "This is a tragic event for our company; however, the market reaction is unwarranted. We announced a comprehensive repositioning plan last week and are making good progress in implementing this plan, as was recognized both by Standard & Poor's and Moody's in their reaffirmation of El Paso's solid investment-grade credit rating last week.

El Paso Global LNG, a subsidiary of El Paso Corporation, announced today that the definitive liquefied natural gas (LNG) purchase and sale agreement signed in October 2001 with a consortium of natural gas production companies led by Statoil ASA received final Norwegian and United States government approvals on May 31, 2002. The consortium will develop the Snohvit Project in northern Norway and provide El Paso with an annual delivery of approximately 1.8 million tons of LNG during the 17-year primary term of the agreement. This agreement will account for more than 40 percent of the total capacity to be produced at the Snohvit Project's LNG liquefaction facility, which will be located on Melkoya Island, just north of Hammerfest, Norway.

Pride International, Inc. (NYSE:PDE) announced the appointment of Robert G. Phillips to the company's board of directors. Over the past 26 years, Mr. Phillips has served in numerous senior management positions in the oil and gas industry, most recently until June 2007 as president and chief executive officer and a director of the general partner of Enterprise Oil Products Partners L.P. (Enterprise). Mr. Phillips also served as chief executive officer of the general partner of GulfTerra Energy Partners, L.P. from 1999 to 2004 prior to its acquisition by Enterprise, and held numerous management positions with El Paso Corporation and its affiliated companies, including president of El Paso Field Services Company from 1996 to 2004. From 1981 to 1995, Mr.

The Houston Exploration Company and El Paso Production Company, a subsidiary of El Paso Corporation, announced that they have executed a letter of intent to conduct an exploration drilling joint venture in the Gulf of Mexico. Under the terms of the agreement, El Paso will contribute up to $50 million for land, seismic and drilling expenditures and pay 100 percent of the dry hole costs to earn 50 percent of Houston Exploration's working interest in up to six specified exploration wells to be drilled during the remainder of 2002 and early 2003. The wells to be drilled by the joint venture are comprised of exploration prospects developed by Houston Exploration on its leases located in the Central and Western Gulf of Mexico and in Texas state waters.

El Paso Corporation announced the sale of its Florida petroleum terminals and tug and barge operations to TransMontaigne, Inc. The transaction has an estimated value of $155 million, including an estimated $35 million of product inventory value at closing. El Paso acquired these assets through its merger with The Coastal Corporation in 2001. The Florida petroleum terminal business provides bunker fuel for the maritime industry and is a major supplier of residual fuel, diesel and gasoline throughout Florida. The sale of these assets supports El Paso's previously announced strategy to exit non-core businesses, which furthers its goal to strengthen the company's balance sheet and reduce debt.

Exmar, CMB's gas tanker division, together with Mitsui O.S.K. Lines, confirms the long-term charter party with El Paso Corporation of two further liquefied natural gas (LNG) tankers, thus bring the total to four vessels. They will be built by Daewoo Shipbuilding & Marine Engineering Company, Ltd. Each vessel will be constructed using the membrane system and have a capacity of approximately 138,000 cu. m. Deliveries will commence in 2004.