Marcellus Ethane Pipeline System

Marcellus Ethane Pipeline System, LLC (MEPS) announces suspension of accelerated development efforts based on results of binding open season for ethane transportation service on proposed Marcellus Ethane Pipeline System (Project)

MEPS conducted a binding open season from June 27, 2011 to September 15, 2011 to obtain shipper commitments for ethane transportation service. While the project received significant interest and remains a viable alternative to transport Marcellus ethane to the Gulf Coast, the responses to the open season do not support our accelerated schedule to meet the proposed in-service date of November 2014. As such, accelerated development efforts are being significantly scaled back.

MEPS is currently owned by El Paso Midstream Group, Inc., which has entered into a Memorandum of Understanding with Spectra Energy Transmission LLC to pursue joint development of the proposed Project. MEPS would initially be designed as an approximately 1,100 mile ethane pipeline to transport up to 90,000 barrels per day of ethane from origin/receipt points located in the Marcellus Shale area to a destination/delivery point located in Eunice, Louisiana; Plaquemine, Louisiana; or Mt. Belvieu, Texas. MEPS would include both newly constructed facilities and the conversion of existing pipelines to ethane service.

In particular, the project would include approximately:

• Northern Segment: 110 miles of a newly constructed liquid ethane pipeline from at or near Houston, Pennsylvania and at or near Natrium, West Virginia (assuming completion of the Dominion fractionation facility) to at or near Cambridge, Ohio and surrounding areas;
• Central Segment: Up to approximately 1,000 miles of pipeline facilities currently owned by Tennessee Gas Pipeline Company (TGP) from Cambridge to at or near Monroe, Louisiana or TGP mainline valve 28, depending on the ultimate destination/delivery point. These facilities would be abandoned by sale for the project, subject to necessary regulatory approvals, and converted to vapor ethane service; and
• Southern Segment: Approximately 60-166 miles of a newly constructed liquid ethane pipeline from the terminus of the Central Segment to a destination/delivery point in Eunice, Louisiana; Plaquemine, Louisiana; or Mt. Belvieu, Texas.

Please direct all inquiries and questions to:

Russell A. Mahan
Vice President
El Paso Midstream Group, Inc.
Office: 713-420-2424
Cell: 713-320-6732
Email: russell.mahan@elpaso.com

*Cautionary Statement Regarding Forward-looking Statements