Tennessee Gas Pipeline Company (TGP) is a wholly owned subsidiary of midstream energy company El Paso. The project links Equitable’s Appalachian production to northeast markets.

The expansion facilities will consist of approximately 125 miles of 30-inch pipe loop and approximately 46,000HP of additional compression facilities to be constructed in TGP’s existing pipeline corridor in Pennsylvania and New Jersey. The company has entered into a fixed price agreement to lock in its pipe costs.

Construction of the project is subject to regulatory approval from the Federal Energy Regulatory Commission (FERC) and other agencies. TGP plans to file its certificate application with the FERC during the second quarter of 2009, with phased construction anticipated during 2010 and 2011, pending receipt of the necessary regulatory approvals for the project.

Bryan Neskora, chief commercial officer of TGP, said: We are excited to have Equitable, a major gas producer in the Appalachian basin, become one of the largest shippers on our system. This project strengthens TGP’s position in the northeast with diversified supplies and a significant increase in capacity to serve this region.