El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy International Announces Porto Velho Power Project
HOUSTON, TEXAS, January 27, 2000ŚEláPaso Energy International, a business unit of EláPaso Energy Corporation
(NYSE:EPG), announced today that it had signed a ten-year power supply agreement with
Eletronorte, a Brazilian government-owned power generator and distributor. Under the
agreement, EláPaso Energy International will supply 64ámegawatts (MW) of
electric power to the city of Porto Velho in the State of Rondonia. EláPaso, which
has a 40-percent stake in the $60 million project, will start construction immediately in
order to begin to supply the city in July of this year.
The project is the first phase of a two-phase project to supply electrical power to the
region, the prime soybean production area of Brazil. The second phase, which will add over
200 MW of gas turbine-based capacity, will complete the electrical supply and give impetus
to the development of indigenous natural gas resources and a related natural gas pipeline.
EláPaso expects to participate in Phase II development.
EláPaso Energy International is an active participant in the Brazilian energy
market and an investor in the Bolivia to Brazil natural gas pipeline. The company also
owns over 400 MW of operating power generation in the State of Amazonas. Recently,
EláPaso Energy International signed a power supply agreement for a 480-MW power
project in southern Brazil and the formation of a joint venture with General Electric to
develop, build, own, and operate 2,000 MW of electric generating capacity in Brazil's most
populous southern states.
"The Porto Velho project expands EláPaso's power portfolio in Brazil,
further solidifying our position as the premier independent power generator in the Amazon
region," said John D. Hushon, president of EláPaso Energy International.
"It is another opportunity for us to make natural gas and electricity more affordable
and accessible to the people of Brazil. We are pleased to move forward with our strategy
in Latin America by developing additional power generating infrastructure in one of the
fastest growing markets on the continent."
With over $16 billion in assets, EláPaso Energy Corporation provides comprehensive
energy solutions through its strategic business units: Tennessee Gas Pipeline Company,
EláPaso Natural Gas Company, Southern Natural Gas Company, EláPaso Merchant
Energy Company, EláPaso Energy International Company, EláPaso Field Services
Company, and EláPaso Production Company. The company owns North America's
largest natural gas pipeline system, both in terms of throughput and miles of pipeline,
and has operations in natural gas transmission, merchant energy services, power
generation, international project development, gas gathering and processing, and gas and
oil production. On Januaryá18,á2000, EláPaso Energy announced that it has
agreed to merge with The Coastal Corporation in a deal valued at $16 billion, including
approximately $6 billion of assumed debt and preferred equity. Visit EláPaso
Energy's web site at www.epenergy.com.
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
company has 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 company makes these statements and projections in good faith, neither the company nor
its management can guarantee that the anticipated future results will be achieved.
Reference should be made to the company's (and its affiliates') Securities and
Exchange Commission filings for additional important factors that may affect actual