El Paso Corporation to acquire interest in Mississippi LNG project

Natural gas distributor El Paso Corporation has announced that a subsidiary of the company has entered into an agreement to acquire a 50% interest in the Gulf LNG Clean Energy Project, a planned liquefied natural gas terminal in Pascagoula, Mississippi.

A subsidiary of El Paso will operate the facility and will manage its construction. The terminal is expected to be placed in service in late 2011 at an estimated cost of $1.1 billion.

Norman Holmes, senior vice president and chief commercial officer of Southern Natural Gas Company, a wholly owned subsidiary of El Paso, said: We are pleased to extend our presence and expertise in the LNG terminal business through the Gulf LNG project. El Paso has a long history with LNG, and we are excited to develop new infrastructure that provides additional sources of natural gas to meet the nation’s growing energy needs.