El Paso Corp. announced Monday that it has received Federal Energy
Regulatory Commission (FERC) approval for its Ruby Pipeline project.
Ruby is a 675-mile, 42-inch interstate natural gas pipeline that will
access significant Rockies supplies and make them available to
consuming markets in California, Nevada and the Pacific Northwest.
"We are pleased to receive FERC approval for a major new pipeline
that will benefit both natural gas producers and consumers in the
western United States," said Jim Cleary, president of El Paso's
Western Pipeline Group. "We are proud of the fact that Ruby will be
the first carbon-neutral pipeline in U.S. history, employing
industry-leading technologies and measures to mitigate potential
climate, wildlife and habitat impacts from its construction and
Ruby will 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 receipt of rights of way from the Bureau of Land Management,
construction of the $3 billion project is scheduled to begin in late
spring 2010, and it is scheduled to be in service in March 2011.
El Paso has entered into agreements with Global Infrastructure
Partners (GIP), whereby GIP will invest up to $700 million in the
Ruby project. Upon satisfaction of various closing conditions, GIP
will acquire a 50 percent equity interest in the project.
El Paso Corp. owns North America's largest interstate natural gas pipeline system and is one of
its largest independent natural gas producers.
Global Infrastructure Partners (GIP) is an independent
infrastructure fund that invests worldwide in infrastructure assets
and businesses in both OECD and select emerging market countries. GIP
targets investments in power and utilities, natural resources
infrastructure, air transport infrastructure, seaports, freight
railroad, water distribution and treatment and waste management. GIP
has offices in New York, London, Hong Kong, and Sydney and portfolio
operations headquarters in Stamford, Connecticut.