ATLANTA, GA and HOUSTON, TX -- (Marketwire) -- 07/28/10 -- AGL Resources Inc. (NYSE: AGL) and El Paso Corporation (NYSE: EP) today announced the signing of a joint-venture agreement to distribute liquefied natural gas (LNG) across the southeastern United States to the heavy-duty transportation market, which includes heavy-duty trucks, buses, and waste haulers, and to peak-shaving facilities. The new 50/50 joint-venture, Southeast LNG Distribution Company (www.southeastlng.com), plans to own and operate a fleet of LNG-fueled tankers and distribution facilities to support the use of LNG as a fuel source for this emerging market segment.
'This partnership with El Paso will play an important role in expanding the availability of clean-burning, low-cost natural gas as an alternative to diesel fuel for heavy-duty fleet use -- including long-haul trucking,' said John W. Somerhalder II, chairman, president and chief executive officer of AGL Resources. 'As the largest natural gas distribution company in the Southeast based on customer count, AGL Resources is well positioned to construct and operate the distribution facilities necessary to help bring this market opportunity to fruition.'
'AGL Resources and El Paso have a unique opportunity to develop this new transportation market by capitalizing on our combined LNG and natural gas infrastructure in the Southeast, our long-time relationship, and the expertise in both organizations,' said Jim Yardley, president of El Paso's Pipeline Group.
Southeast LNG plans to provide distribution facilities and gas supply contracts to both the private and public sectors as the market develops. The company will be headed by President Bruce H. Hughes, who brings more than 30 years of natural gas pipeline experience to Southeast LNG. Hughes most recently served as director of business development with Southern Natural Gas Company, a subsidiary of El Paso Corporation, where he developed natural gas supply and pipeline expansion projects across the southeastern United States.
'Approximately 25 percent of the nation's tractor-trailer traffic occurs in the southeastern U.S.,' said Hughes. 'We plan to develop infrastructure to fuel and service this market segment with LNG, providing significant environmental and economic benefits.'
AGL Resources, an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As an 85-percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit http://www.aglresources.com.
El Paso Corporation 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 one of North America's largest independent natural gas producers. For more information, visit www.elpaso.com.
Note to Editor: Southeast LNG intends to initially source LNG for the project from the Elba Island LNG regasification and storage terminal located near Savannah, Georgia, a facility in which El Paso Corporation owns a significant interest.
Cautionary Statement Regarding Forward-Looking Statements for AGL Resources
Certain expectations and projections regarding our future performance referenced in this press release are forward-looking statements. Forward-looking statements involve matters that are not historical facts, such as statements regarding our future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. Because these statements involve anticipated events or conditions, forward-looking statements often include words such as 'anticipate,' 'assume,' 'believe,' 'can,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'goal,' 'indicate,' 'intend,' 'may,' 'outlook,' 'plan,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'target,' 'would,' or similar expressions. Forward-looking statements contained in this press release include, without limitation, the statements regarding the role of the partnership in expanding the availability of alternative fuel sources and the plan for the partnership to provide environmental and economic benefits of liquefied natural gas through its newly developed infrastructure. Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. While we believe our expectations are reasonable in view of the currently available information, our expectations are subject to future events, risks and uncertainties, and there are several factors -- many beyond our control -- that could cause results to differ significantly from our expectations.
Such events, risks and uncertainties include, but are not limited to, changes in price, supply and demand for natural gas and related products; the impact of changes in state and federal legislation and regulation; the impact on cost and timeliness of construction projects by government and other approvals, development project delays, unexpected change in project costs, including the cost of funds to finance these projects; general economic conditions; the impact of natural disasters such as hurricanes on the supply and price of natural gas; acts of war or terrorism; and other factors which are provided in detail in our filings with the Securities and Exchange Commission, which we incorporate by reference in this press release. Forward-looking statements are only as of the date they are made, and we do not undertake to update these statements to reflect subsequent changes.
Cautionary Statement Regarding Forward-Looking Statements for El Paso Corporation
This release includes certain forward-looking statements and projections. 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, including, without limitation, our ability to achieve commercial success with the announced joint venture; our ability to obtain all necessary federal, state and local regulatory approvals; our ability to successfully construct and operate the proposed facilities described in this release; changes in commodity prices and basis differentials for oil, natural gas, LNG and power; general economic conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. In addition, there are inherent uncertainties in any start-up business, which make it difficult to predict the success or viability of the proposed joint venture. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
Vice President, Finance
El Paso Corporation