The Federal Energy Regulatory Commission (FERC) has approved El Paso Corporation’s (EP) $3 billion Ruby Pipeline project. The pipeline will benefit both natural gas producers and consumers in the western United States.
El Paso’s 675-mile, 42-inch interstate natural gas pipeline will access significant Rockies supplies and make them available to consuming markets in California, Nevada and the Pacific Northwest. It is expected to transport natural gas from an existing supply hub at Opal, Wyoming, to interconnections near Malin, Oregon. It will have an initial design capacity of up to 1.5 billion cubic feet per day.
Pending the receipt of rights of way from the Bureau of Land Management, the construction of the project is scheduled to begin in late spring 2010. The project is expected to be operative in March 2011.
Additionally, El Paso has entered into agreements with Global Infrastructure Partners (“GIP”) for investments up to $700 million in the Ruby project. Once the closing conditions are satisfied, GIP will acquire a 50% equity interest in the project.
Houston, Texas-based El Paso Corporation is a major player in both the natural gas transmission and exploration and production space in the U.S. It provides natural gas and related energy products in a safe, efficient and dependable manner. The company owns North America’s largest interstate natural gas pipeline system and is one of North America’s largest independent natural gas producers.
The company’s high-grade exploration and production assets and large inventory of projects offer significant value in the long run.
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