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Tennessee to Add 186,000 Dth/d of Firm Capacity, Increase Storage Deliverability

El Paso Corp. subsidiary Tennessee Gas Pipeline (TGP) said it signed precedent agreements with shippers in support of two pipeline expansion projects that are designed to meet growing gas demand in the Northeast. The projects, which are called Northeast ConneXion-New England and Northeast ConneXion-New York/New Jersey, are being developed in response to customers' requests for additional gas supply access from storage fields in New York, Pennsylvania and the Gulf Coast.

The Northeast ConneXion-New England project originally was designed to increase the capacity on TGP's system to the New England region by 100,000 Dth/d, but the size of the expansion was increased to 136,300 Dth/d due to strong customer demand during a binding open season, TGP said.

The project will require installation of additional compression along the mainline in New York and Massachusetts to provide the project's service. Supplies for this long-haul capacity will originate in Texas and Louisiana. TGP expects the project to be in service for winter 2007-2008. TGP said shippers signed agreements with terms ranging from 11.5 to 20 years.

Its Northeast ConneXion-New York/New Jersey expansion will provide 50,000 Dth/d of new firm transportation capacity for 10 years from Tennessee's storage facilities in Pennsylvania to Ramsey, NJ. The project also includes expanded deliverability from the Hebron storage field, which currently can deliver about 300 MMcf/d. TGP plans to file its application for this project with FERC in April. Pending FERC and other regulatory approvals, it expects the expansion to be operational in late 2006.

"These important developments on our Northeast ConneXion projects demonstrate our and our customers' commitment to meet the increased demand for energy infrastructure in the Northeast region of the United States," said Stephen C. Beasley, president of El Paso's Eastern Pipeline Group. "Tennessee has one of the largest natural gas transmission footprints in this region, and we continue to connect strategic supply areas to customers in premier markets."

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