Liquefied Natural Gas

The Elba Island LNG terminal is located near Savannah, Georgia. The facility receives regular LNG shipments, primarily from Trinidad, and is a key hub for markets in the Southeast region of the United States. Two Elba-related expansion projects are underway, the Elba III terminal expansion project and the Elba Express Pipeline project.

• The Elba III expansion will add 8.4 billion cubic feet of storage capacity and 900 million cubic feet per day of send-out capacity, doubling Elba’s storage and send-out capabilities. The expansion includes installation of two 4.2 Bcf storage tanks and modification of the docking facilities to accommodate new, larger delivery vessels.
• The Elba Express project involves construction of a natural gas pipeline to receive supply from Elba Island and run northwest, interconnecting with pipelines and customers along the route. The project involves 190 miles of 42-inch and 36-inch diameter pipeline.

We expect to place both expansion projects in service in the first quarter of this year.

In addition, El Paso has a 50 percent interest in the Gulf LNG liquefied natural gas receiving terminal in Pascagoula, Mississippi. The terminal, which is currently under construction, will receive, temporarily store, and regasify LNG with a base send-out capacity of 1.3 Bcf/d. The terminal is located near the Bayou Casotte Ship Channel in the Port of Pascagoula, an excellent location for receiving LNG vessels. The site provides easy access to major gas pipelines serving the Northeast and the Southeast United States as well as underground gas storage in the region, and the ability to supply nearby gas processing plants. We expect Gulf LNG to be in-service in 2011.

*Cautionary Statement Regarding Forward-looking Statements