Cypress Pipeline Project — Phase III

Southern Natural Gas

Southern Natural Gas (SNG), a subsidiary of El Paso Corporation, is based in Birmingham, Alabama, and transports more than 3 billion cubic feet of natural gas per day during peak periods through 8,000 miles of pipeline within the Southeast region of the United States. The company also owns and operates the Elba Island liquefied natural gas regasification facility near Savannah, Georgia, with approximately 4 billion cubic feet of storage capacity and 440 million cubic feet per day of send-out capacity. The facility is currently being expanded to approximately 7.3 billion cubic feet of storage capacity and a send-out capacity of 800 million cubic feet per day.

Cypress Pipeline

On May 1, 2007, Southern Natural Gas, a subsidiary of El Paso Corporation, placed into service phase one of its Cypress Pipeline project.

The new pipeline, which is an expansion of SNG, provides an incremental 220 million cubic feet per day (MMcf/d) of takeaway capacity from Elba Island, the company’s liquefied natural gas (LNG) facility near Savannah, Georgia. From Elba Island, the 167-mile pipeline extends the SNG system into southern Georgia and northern Florida and interconnects with the Florida Gas Transmission system near Jacksonville, Florida. This expansion project provides increased natural gas supplies to growing southeastern markets and allows new diverse incremental natural gas sources to reach utilities, industries, and distribution companies in the Southeast. The project received long-term commitments from BG LNG Services, Progress Energy Florida, and the City of Austell, Georgia prior to construction.

“The Cypress project is a great example of new critical infrastructure expansions that are occurring across the El Paso pipeline system,” said Jim Yardley, president of El Paso’s Pipeline Group. “We are pleased to deliver this project and its important natural gas supplies on-time and on-budget.”

On May 1, 2008, SNG placed into service phase two of its Cypress Pipeline Project. During this phase of the project compression facilities were installed to add an additional 116 MMcf/d of capacity to the pipeline. Phase three of the project, which is scheduled to be in-service by 2010, will add an incremental 164 MMcf/d through additional compression.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America’s largest natural gas pipeline system and one of North America’s largest independent natural gas producers. For more information, visit http://www.elpaso.com/